The U.S. Federal Trade Commission, whose mission is to serve the nation’s consumers, is seeking to eliminate an exemption that excludes common communications carriers from its oversight jurisdiction. The FTC Act of 1914 exempts common carriers from its prohibitions on unfair or deceptive acts or practices and unfair methods of competition.
In testimony before both the Senate Commerce Committee and the House Energy and Commerce Committee, FTC Chairman Timothy J. Muris requested that Congress eliminate this special exemption for telecom carriers to reflect the fact that competition and deregulation have replaced the comprehensive economic regulation that once governed the nation’s telecom monopolies. Muris said this exemption is outdated and that technological advances have blurred traditional boundaries between telecommunications, entertainment, and high technology. The FTC believes its extensive expertise with fraudulent advertising, marketing, billing, and collection activities would prove valuable to consumers, as these problems have emerged in the telecommunications industry. The common carrier exemption also significantly restricts the FTC’s ability to engage in effective antitrust enforcement for the telecommunications industry.
In a rebuttal, Larry Sarjeant, Vice President and General Counsel, U.S. Telecom Association, testified that the FCC and the state regulatory commissions already subject carriers to comprehensive regulation. The USTA is opposed to adding another regulatory agency and another regulatory regime to manage the telecommunications industry. Sarjeant noted that the FCC routinely takes action against unreasonable and deceptive consumer practices by carriers and their agents.
The FTC is also asking Congress to enact measures to improve its ability to combat cross-border fraud; enact measures to improve the FTC’s ability to combat spam; and make it possible for the agency to accept certain types of reimbursement that will enhance overall mission performance.
http://www.ftc.gov/os/2003/06/030611reauthsenate.htmhttp://commerce.senate.gov/hearings/testimony.cfm?id=807&wit_id=2207
- Among the consumer protection initiatives underway at the FTC is the inception of a national, telemarketing “Do-Not-Call” list.
