Web Privacy Policies Need Transparency, Say Heads Of FTC, FCC

By Rob Sanna - Talk Radio News Service

 The men in charge of both the Federal Trade Commission (FTC) and the Federal Communication Commission (FCC) told members of the Senate Committee on Commerce, Science, and Transportation on Tuesday that customers should be able to “opt-in” to information tracking when shopping on the internet.

Under current information tracking systems, consumers must “opt-out” of privacy policies or disable internet tracking devices called cookies. Unless consumers spefically tell internet service providers they do not want to be tracked, their internet activity is recorded.

“For vulernable populations and sensitive information, we have said that those should be ‘opt-in’ rather than ‘opt-out,’” said FTC Chairman Jon Liebowitz. “In terms of informing consumers and protecting their privacy…’opt-in’ is a much better approach.”

“There’s a huge disconnect between what consumers think happens to their data and what really happens to their data. Most consumers believe that a privacy policy protects their privacy, instead, a privacy policy delinates their rights and their lack thereof,” he added.

Members cited the example of a British gaming company called Gamestation, who included a clause in their terms and conditions which forced customers who agreed to “surrender their eternal soul” to Gamestation.

According to Leibowitz, most consumers did not opt out of this clause, even when provided with a rebate incentive. This, he said, demonstrates that people do not read privacy policies, and that the policies do not protect people adequately.

“In order to get the economic benefits of broadband, tele-health, and education, people need to be confident that the internet is a safe, trustworthy place,” said FCC Chairman Julius Genachowski. “The more people have the concerns that we’re hearing today, the less likely they are to take advantage of this medium.”

House Panel Approves Bill Creating Consumer Protection Commission

By Travis Martinez - University of New Mexico/Talk Radio News Service

The House Committee on Energy and Commerce voted 33-19 on Thursday to pass H.R. 3126, otherwise known as the Consumer Financial Protection Agency Act of 2009. The legislation would oversee mortgages and other financial products and would strengthen the Federal Trade Commission's role in the financial industry.

Lawmakers on the House Energy and Commerce Committee voted to make two major changes to the bill. The first amendment, offered by Chairman Henry Waxman (D-Calif.), would first rename the agency, as written in the mark, as a new government commission. The amendment also provided a restructured panel of five members to the commission, with a limit of three commissioners from any particular political party. This would give the commission the same structure as the Federal Trade Commission, or Federal Communications Commission.

Several businesses, either in full or in part, would be exempt from the legislation. This list includes auto dealers, credit, mortgage and title insurers, banks with less than $10 billion in assets, and credit unions with less than $1.5 billion in assets.

Waxman acknowledged the long list of exemptions as a possible problem, but said that he would wait to address any issues he had.

"I am concerned that too many exemptions and exclusions were put into the bill... I will want to examine them closely as we move toward consideration on the floor," said Waxman.

Rep. Joe Barton (R-Texas) offered numerous amendments that were subsequently shot down after discussion with the panel. However, in a show of bipartisanship, Waxman offered to work with Barton on re-wording the offered amendments so that they could be possibly brought to the floor at a later date for full consideration.

Waxman recognized the original bill's sponsor, House Financial Services Committee Chair Rep. Barney Frank (D-Mass.) for his committee’s work on promoting the expanded authority of the FTC over the financial sector.

“I am pleased that he made many essential changes, particularly in regard to the impact of the FTC, which will preserve the FTC’s authority to provide and aggressively enforce against financial fraud,” said Waxman.

Health Care Marketplace: Cut Costs And Create Competition

By Courtney Ann Jackson-Talk Radio News Service

The issue of promoting competition and preventing rising health care costs was discussed by the Consumer, Product Safety, and Insurance Subcommittee during a hearing Thursday morning.

“For too long, too many health care decisions have been made behind closed doors with industry profits, not the patient’s best interests in mind,” said Chairman Jay Rockefeller (D-W.V.). “It is no surprise that without any transparency or the force of competition to keep them honest, industry profits soared, as have consumer costs and the barriers to necessary medical care.”

Representatives from various organizations including the Federal Trade Commission, New America Foundation, Center for American Progress, Arkansas Pharmacists Association and Galen Institute testified at the hearing.

Richard Feinstein, Director of the Bureau of Competition at the Federal Trade Commisssion (FTC), highlighted the need to prevent or stop anticompetitive agreements that raise health care prices. He said anitrust enforcement saves money that consumers, employers, and governments could spend on health care. All the panelists agreed that reform is needed, and more should be done to create more health care incentives for the public.

Sen. John Barrasso (R-Wyo.) also held a health care discussion of his own Thursday. Barrasso and Sen. Tom Coburn (R-Okla.) are hosting a new online show entitled “The Senate Doctors Show.” Barrasso and Coburn are the only doctors in the Senate and their new show will feature them answering questions from the public about health care proposals under debate in Congress.

“I think you ought to take the bill home, read it, talk to people about it. The best ideas don’t come from Washington...I think the American people have a right to expect to see the bill, read the bill, think about the bill, and come up with some suggestions,” said Barrasso.

"The Senate Doctors Show" is streamed live at http://republican.senate.gov/doctors every Tuesday and Thursday at 4:00 p.m. EDT.

Geithner: Preying on vulnerable homeowners will not be tolerated

The all-to-common advertisement on the radio or television, which promises that a company can restructure variable-rate mortgages in order to prevent the home from going into foreclosure, is often just that--an advertisement. These offers have lured American homeowners to place their trust and money into such firms. And subsequently, many homeowners are coming to the realization that their wasted funds have been stolen by companies that did not actually work of their behalf or charged them for services and documents that can be obtained by the government for free.

“These are predatory schemes designed to rob Americans of their savings and possibly their homes,” said Timothy Geithner, Secretary of the Treasury.

John Leibowitz, Chairman of the Federal Trade Commission, agreed. “These companies are kicking people when they are down, charging enormous upfront fees, and sabotaging efforts by homeowners when they could be getting help for free.”

In an effort to stamp out these companies, the Federal government has begun an unprecedented partnership with state and local governments, which “underscores that this administration is doing everything we can ... to prevent this from happening,” said Geithner.

Speaking from the state level Lisa Madigan, the Attorney General of Illinois, announced recently another lawsuit against a company targeting Spanish speaking homeowner, which brought the total number of lawsuits to 24 companies since 2006.

Madigan’s office has sent out letters to 70 additional companies warning them that they will be sued if they do not pay back the defrauded homeowners.

Additionally, Madigan spoke directly to the struggling homeowners when she warned them to “stay away from anyone who says that they will save your home for money upfront,” as it is almost certainly a scam.

Giving the sternest warning, Eric Holder, the Attorney General, stated that “If you prey on vulnerable homeowners with fraudulent mortgage schemes or discriminate against borrowers we [the government] will find you and we will punish you.”