FTC Aims to Expand Authority
On February 4, the Senate Committee on Commerce, Science and Transportation conducted a hearing to discuss proposed changes in industry-wide rulemaking authority at the Federal Trade Commission. FTC Chairman Jon Leibowitz was the only witness in at the hearing. The changes under discussion would do away with the Magnusson-Moss rulemaking procedures the Commission has been using for over 30 years, and replace them with rulemaking authority under the Administrative Procedure Act (APA). The changes would do away with the current requirement that the agency demonstrate a practice is prevalent in the industry, and gauge the economic impact before enacting rules. It would also severely limit the opportunity for business and consumer comment on proposed rules. The Chairman also asked for the ability to seek immediate civil penalties for deceptive acts, independent litigation authority, and the authority to prosecute actors charged with aiding and abetting under the FTC Act. The Chairman asserted that the FTC needs the new authority to better protect consumers. However, under questioning he was unable to cite a current problem that needs to be addressed, nor a past problem that the agency could not address under the current Magnusson-Moss procedures. The changes have already passed the House of Representatives in an addition to legislation creating a Consumer Financial Protection Agency.
Microsoft and Yahoo Partnership Approved
The ten-year search partnership between Microsoft and Yahoo has been approved by both the US Department of Justice and the European Commission. The partnership was approved without restrictions and is on track to be completed by 2012. Each company will represent different advertising segments for customers. In a joint statement the companies said, “Yahoo’s sales team will exclusively represent and support high-volume advertisers, search engine optimization and search engine marketing agencies, and resellers and their clients. Microsoft will represent and support self-service advertisers.”
Utah Targets Deceptive Advertising
A Utah Senate committee has unanimously passed a bill to create stricter laws for deceptive advertising. HB97, which already passed through the House, adds more definitive language to current laws describing how a business can advertise “going out of business sales.” The bill is targeted at those companies who run going out of business sales when they know that they will stay open, not those who run a sale which then enables them to stay open. Rep. Marie Poulson, D-Cottonwood Heights, the bill’s sponsor, believes it will help to create a transparent marketplace. It helps the consumer because they can trust the places they go and it helps the businesses because they can be trusted
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