The FTC has opened a nonpublic investigation into potential privacy practice violations at Facebook, following allegations that Cambridge Analytica misused personal data of 50 million Americans for political purposes (see 1803200047), acting Director of the FTC Bureau of Consumer Protection Tom Pahl said Monday. Pahl said the FTC enforces against failures to comply with the Privacy Shield, the FTC Act and data security requirements, among other areas of consumer privacy concern. “The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook,” Pahl said. The National Association of Attorneys General on Monday sent a letter to Facebook CEO Mark Zuckerberg asking for answers about the company’s user privacy policies and practices. The group of 37 state and territory AGs also asked Zuckerberg how the company is making it easier for users to control their privacy. “These revelations raise many serious questions concerning Facebook’s policies and practices, and the processes in place to ensure they are followed,” the group wrote.
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
If the autonomous vehicle that recently struck and killed a pedestrian in Arizona is found to be at fault (see 1803200064), it further underscores the need for swift legislative action, Sen. John Thune, R-S.D., told us. “That is one of the arguments of why we need to get a bill that creates a policy framework and some guardrails around everything’s that’s happened.” Thune is lead sponsor of the American Vision for Safer Transportation Through Advancement of Revolutionary Technologies Act (S-1885).
The U.S. government has taken initial steps to secure federal networks and critical infrastructure, but the process of securing the IoT has just begun, said White House tech policy adviser Kelsey Guyselman Tuesday. Speaking at an event hosted by the American Bar Association and the FCBA, Guyselman detailed the goals of President Donald Trump’s executive order from May. Botnets and other automated threats aren't problems that can be solved by a single entity, agency or sector, she said, urging a collaborative approach to securing the IoT. Guyselman spoke in place of NTIA Administrator David Redl, who couldn't attend due to a scheduling conflict. On a separate panel, DOJ Computer Crime-Criminal Division Deputy Chief Michael Stawasz opposed the EU's general data protection regulation potentially impeding criminal investigations abroad. While working full-time to gain legal access to private data, and balancing law enforcement and privacy concerns, Stawasz said he likes the U.S.’ current framework “just fine.” The GDPR could potentially conflict with warrant compliance, he said. Wiley Rein's Megan Brown said, based on discussions with industry and officials in Europe, there has been a “slow awakening” that the GDPR could interfere with surveillance.
Artificial intelligence functions properly through machine learning most of the time, but when it’s wrong, results can be “extraordinarily” bad, and this deserves attention, said Google Legal Director Kenneth Rubenstein Friday. He spoke on a panel at an Association of National Advertisers event about AI and autonomous driving.
House Judiciary Committee Chairman Bob Goodlatte, R-Va., plans to combine the Music Modernization Act (MMA) (HR-4706) from Rep. Doug Collins, R-Ga., the Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society (Classics) Act (HR-3301) and the Allocation for Music Producers (AMP) Act (HR-881) into one legislative package to be introduced Friday. That’s according to a senior House Republican aide and an industry official.
Autonomous vehicles will make American roads safer and less congested, government officials, industry representatives and academics said Tuesday. Speaking at an event in Washington hosted by Arizona State University, U.S. Chamber of Commerce Assistant Policy Counsel-Chamber Technology Engagement Center Jordan Crenshaw said 94 percent of motor vehicle accidents are caused by human error. Maricopa Association of Governments Transportation Director Eric Anderson said crashes undercut the capacity of the Phoenix area’s transportation system. Anderson said he began “drinking the Kool-Aid” two years ago and is excited about the safety and infrastructure benefits of autonomous vehicles. Phoenix can reduce its need for roadway capacity expansion by planning for the technology, he said.
While convenient for consumers and cost-effective for certain businesses, the rise of e-commerce creates data security and privacy concerns, and it threatens small businesses without an online footprint, the House Digital Commerce Subcommittee heard Wednesday, as expected (see 1803060041). Hel’s Kitchen Catering founder David Borris called Amazon “an existential threat” to millions of small businesses. Small firms lack resources to establish quality online platforms, he said, and sometimes spend the equivalent of 8 to 10 percent of profit to compete. Amazon responded by citing to us that more than 50 percent of Amazon unit sales come from third-party sellers; more than 2 million offer hundreds of millions of unique products through Amazon’s Marketplace; and more than 100,000 have more than $100,000 in sales through Amazon.
The House Digital Commerce Subcommittee expects to hear from e-commerce experts Wednesday on a range of consumer issues, including data security, consumer privacy and IoT technology, said Chairman Bob Latta, R-Ohio, and an executive in interviews Tuesday. The hearing is expected to examine how e-commerce altered retail and its impacts on supply chain, delivery and consumer expectations. This e-commerce trend has been made possible by modern payment methods like blockchain technology and convenient delivery options, enabled in part by emerging IoT technologies.
The Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA) (HR-1865) the House passed Tuesday evening (see 1802270057) is an example of the need for government intervention in the absence of action from tech companies, said House Commerce Committee Chairman Greg Walden, R-Ore. During an appearance Wednesday at an Axios event, he expressed skepticism online platforms couldn't formulate algorithms that weed out malicious actors. If private enterprise isn't responsible and doesn’t actively respond to community needs, regulation is needed, he said. “We passed a law yesterday to deal with it,” he said, while drawing parallels to alleged Russian U.S. election interference. “It’s shocking that this couldn’t have been identified before and managed differently, and that may require additional disclosure requirements,” he said, adding he would like a “light touch” in this space, but people are “demanding accountability.” Consumers want more control over their data and privacy, he said.
FTC members and staffers heard from academics about privacy, security and other risks in a range of connected products and in some of the programming that undergirds parts of the IoT. Many shared parts of their research and published papers Wednesday during the FTC’s PrivacyCon.