Federal Trade Commission

Monetary penalties are the attention-grabbing headline when the FTC or any regulator brings an enforcement action against a company.  They are the looming threat to incentivize and influence compliance.  Over the summer, FTC Chairman Joseph J. Simons (“Chairman Simons”) issued a statement in connection with a settlement that Chairman Simons believes “the goal of a civil penalty should be to make compliance more attractive than violation.  Said another way, violation should not be more profitable than compliance.”

Continue Reading FTC Fines: FTC Chairman Reminds Companies That Fines Are the FTC’s Strategic Tool To Deter Noncompliance

On October 31, a bipartisan group of senators introduced the Filter Bubble Transparency Act (FBTA), an act which would require large online platforms to be more transparent in their use of algorithms driven by user-specific data.

“This legislation is about transparency and consumer control,” said Senator John Thune (R-S.D.).

“For free markets to work as effectively and as efficiently as possible, consumers need as much information as possible, including a better understanding of how internet platforms use artificial intelligence and opaque algorithms to make inferences.”

The bill is named after Eli Pariser’s book The Filter Bubble, which argues that the personalized search results generated by user-specific data can trap users in an ideological bubble by filtering out content contrary to their ideological viewpoints.


Continue Reading Bipartisan Bill Seeks to Increase Internet Transparency and Consumer Control Over Content