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All Commission rules are published inTitle 16 of the Code of Federal Regulations. For decades, the FTC has developed its consumer protection rules in one of two ways: (1) as directed by Congress in federal legislation or (2) under Section 18 of the FTC Act. 15 U.S.C. Find legal resources and guidance to understand your business responsibilities and comply with the law. As noted above, the FTC is not expected to vote on its proposed ban, or some version of it, until April 2024. The Federal Trade Commission ("FTC" or "Agency") recently indicated that it considers initiation of pre-rulemaking "under section 18 of the FTC Act to curb lax security practices, limit . On this topic page, you can find the IAPPs collection of coverage, analysis and resources covering AI connections to the privacy space. Chair Khan and Commissioners Chopra and Slaughter voted yes, and Commissioners Noah Joshua Phillips and Christine S. Wilson voted no. Section 6(f) also authorizes the agency to share confidential information with other appropriate enforcement agencies, subject to appropriate limitations and confidentiality assurances. Although parties are not obligated to comply with a second request, consummation of the transaction without complying is illegal. As suggested by the title to this blogpost, I have an opinion: Mag-Moss is still an uphill climb. The .gov means its official. Any member of the Commission may sign a subpoena (pursuant to a Commission-issued resolution for compulsory process in the matter), and both members and examiners (employees) of the agency may administer oaths, examine witnesses, and receive evidence. 2023 is the place to find speakers, workshops and networking focused on the intersection of privacy and technology. reports or answers in writing to specific questions to provide information about the entitys organization, business, conduct, practices, management, and relation to other corporations, partnerships, and individuals. 15 U.S.C. Under Section 18 of the FTC Act, 15 U.S.C. What Are the Key Provisions? 45(m)(1)(A). After the 60-day comment period is over, the FTC will issue a Notice of Proposed Rulemaking, which will likely contain the rule text. The rulemaking procedures build in extensive opportunities for public input, far in excess of the opportunities for public comment under the Administrative Procedure Act. Need advice? Secs. Gain exclusive insights about how privacy affects business in Australia and Aotearoa New Zealand. Under Section 7A, parties to covered mergers or acquisitions must notify the FTC and the Department of Justice before consummating the proposed acquisition and wait a specified number of days before consummation. Subscribe to the Privacy List. The hearing is run by a presiding officer that notes disputes of material facts that arise, allows for cross-examination and rebuttal testimony, and then submits a report to the FTC with a recommended resolution to the disputes based on the evidence provided. Increase visibility for your organization check out sponsorship opportunities today. If you file a qualifying petition with the FTC, it will be posted for members of the public to provide comments about it. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. All Commission rules are published in, Contract Terms That Impede Competition Investigations, An Inquiry into Cloud Computing Business Practices: The Federal Trade Commission is seeking public comments, FTC and DOJ Propose Changes to HSR Form for More Effective, Efficient Merger Review, Title 16 of the Code of Federal Regulations, administrative cease and desist authority [5(b) FTCA], judicially ordered injunctive relief [13(b) FTCA; also5(l) FTCA(for violations of cease and orders)], referral to U.S. Department of Justice [16(b) FTCA], administrative cease and desist authority [11(b) Clayton Act], judicially ordered injunctive relief [13(b) FTCA; also7A(g)(2) Clayton Act(for HSR reporting violations) and11(l) Clayton Act(for violations of cease and desist orders)], judicially ordered injunctive relief [15 Clayton Act; also 7A(g)(2) Clayton Act(for HSR reporting violations)], may apply to the courts for injunctive relief [16 Clayton Act], may recover for injuries sustained by the United States Government (treble damages) [4A Clayton Act], may apply for treble damages [4 Clayton Act], judicially ordered civil penalties for violating cease and desist orders [11(l) Clayton Act and Commission Rule 1.98(b); also 7A(g)(1) Clayton Act (for HSR reporting violations) and Commission Rule 1.98(a)], judicially ordered civil penalties [7A(g)(1) Clayton Act (for HSR reporting violations) and Commission Rule 1.98(a)], officer liability for corporate violation of penal provisions [14 Clayton Act], judicially ordered injunctive relief [4 Sherman Act], prosecution for violations of 12(a) FTCA [14 FTCA], judicially ordered injunctive relief [13(b) FTCA; also13(a) FTCA(for violations of12(a) FTCA) and5(l) FTCA(for violations of cease and desist orders)], judicially ordered redress also for rule violations [19(a)(1) FTCA] and for fraudulent or dishonest conduct [19(a)(2) FTCA], judicially ordered civil penalties for violating cease and desist orders [5(l) FTCA and Commission Rule 1.98(c); also 5(m)(1)(A) FTCA (for violations of trade regulation rules) and Commission Rule 1.98(d); also 5(m)(1)(B) FTCA (for violations of adjudicatory cease and desist orders by non-parties) and Commission Rule 1.98(e)]. However, even without these added steps, Mag-Moss remains a long and rocky road, especially for (1) complex rules with dozens of mandates, each of which must to shown to be unfair or deceptive, as well as prevalent and (2) controversial matters, which are likely to prompt multiple requests for hearings, cross examinations, rebuttals, exemptions, and court review. Track enforcement and policy developments from the Commissions open meetings. The Commission enforces both consumer protection and antitrust laws. Sec. Sec. That requirement was scrapped. This process is called agency rulemaking, and it results in final rules that become federal law. On September 8, the Commission continued the rulemaking . The FTC protects consumers and competition by combating monopolies, false advertising, privacy invasions, scams, and other unfair or deceptive conduct, as well as by addressing unfair methods of competition. Specific rulemaking requirements should be verified via official sources. More than 1,200 law firms, advocacy organizations, trade associations, companies, researchers, and others responded to the Federal Trade Commission's Advance Notice of Proposed Rulemaking (ANPR) on "Commercial Surveillance and Data Security." Significantly, the ANPR initiates a process that may result in comprehensive regulation of data privacy and security in the United States, and also . The scope of a CID is different from that of a subpoena. A report by the U.S. Federal Trade Commission on the data collection and use practices of internet service providers found many collect and share more data than consumers expect. 45(a), prohibits, inter alia, unfair methods of competition. Unfair methods of competition include any conduct that would violate the Sherman Antitrust Act or the Clayton Act. This report explores the compensation, both financial and nonfinancial, offered to privacy professionals. Explore refund statistics including where refunds were sent and the dollar amounts refunded with this visualization. 46(b). The two most significant statutory provisions are Section 5(a) of the FTC Act and the Clayton Act. Clear rules help honest businesses comply with the law and better protect consumers and workers against bad actors. The IAPP is the largest and most comprehensive global information privacy community and resource. They also cite the failure of the FTC since the 1980s to issue UMC rules via the APA process as further evidence that the agency lacks the authority to do so. Further, in proper cases, the Commission may seek, and the court may grant, a permanent injunction. 3. Its crowdsourcing, with an exceptional crowd. . Sec. Serving economic news and views every morning. Hear top experts discuss global privacy issues and regulations affecting business across Asia. Id. Commissioner Wilson issued a, or report fraud, scams, and bad business practices at, sign up to get the latest FTC news and alerts, Contract Terms That Impede Competition Investigations, An Inquiry into Cloud Computing Business Practices: The Federal Trade Commission is seeking public comments, FTC and DOJ Propose Changes to HSR Form for More Effective, Efficient Merger Review, announcement earlier this year of a Rulemaking Group, Dissenting Statement of Commissioners Christine S. Wilson and Noah Joshua Phillips regarding the Commission Statement on the Adoption of Revised Section 18 Rulemaking Procedures, Statement of the Commission Regarding the Adoption of Revised Section 18 Rulemaking Procedures, 16 CFR Parts 0 and 1: Rules of Practice: Revisions to Parts 0 and 1, Statement of Commissioner Rebecca Kelly Slaughter Joined by Chair Lina M. Khan and Commissioner Rohit Chopra Regarding the Adoption of Revised Section 18 Rulemaking Procedures, Dissenting Statement of Commissioner Christine S. Wilson. Background The Changing Narrative Around Mag-Moss Rulemaking. This infographic outlines the key rulemaking steps. FTC Act Section 5(c), 15 U.S.C. 46, 49, and 57b-1, which authorize investigations and various forms of compulsory process. To find existing FTC rules, visitTitle 16 of the Code of Federal Regulations. In 1980, Congress enacted additional steps for the agency to follow to prevent the issuing of excessive rules by making the process more exacting on the FTC, thus disincentivizing (or perhaps appropriately incentivizing) broad rulemakings in favor more targeted enforcement of specific abuses. Federal government websites often end in .gov or .mil. In addition, various other statutes authorize Commission rulemaking; such rulemaking is typically promulgated in accordance with section 553 of title 5, United States Code. Included in that vision was a renewed emphasis on utilizing rulemaking to issue regulations with broader applicability than has occurred in recent decades. Sec. Any . 46(i) and 57b-1(a)(8)(C), incorporate the IAEAA investigative authority into the FTC Act. Did the FTCs changes to its internal rules last July (see below) really streamline the process as the FTC claimed? 57b. The FTCs foray into surveillance and other broad privacy topics could crash into all of these obstacles. 4, 15 U.S.C. The IAPPs US State Privacy Legislation Tracker consists of proposed and enacted comprehensive state privacy bills from across the U.S. Access all reports and surveys published by the IAPP. Not all FTC rules must go through the Magnuson-Moss process. We work to advance government policies that protect consumers and promote competition. The Commission may prosecute any inquiry necessary to its duties in any part of the United States, FTC Act Sec. As technology professionals take on greater privacy responsibilities, our updated certification is keeping pace with 50% new content covering the latest developments. The FTCs current leadership argues that the procedures do not cover UMC rules because they are not specified in the act and that it has authority to use APA rulemaking for those rules under its broad authority to enact regulations for the purpose of carrying out its responsibilities under the Federal Trade Commission Act. 44. Section 9 of the FTC Act authorizes the Commission to require by subpoena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation. 15 U.S.C. The existence of an FTC investigation is ordinarily nonpublic information. Foundations of Privacy and Data Protection, 2023 IAPP Privacy Professionals Salary Survey, TOTAL: {[ getCartTotalCost() | currencyFilter ]}, FTC Staff Report: Examining the Privacy Practices of Six Major Internet Service Providers, Important FTC Rules for Health Apps Outside of HIPAA. Sec. New leadership at the FTC, in order to expand its commissioners influence over rulemaking, has changed its internal rules and appears poised to eschew Magnuson-Moss rulemaking in order to pursue more broad-based rulemakingparticularly regarding unfair methods of competition. Secs. Before sharing sensitive information, make sure youre on a federal government site. Track enforcement and policy developments from the Commissions open meetings. The Commissions specific investigative powers are defined in Sections 6, 9, and 20 of the FTC Act, 15 U.S.C. . 57b-3, contains procedural requirements that apply to the Commissions rules. 13-13b). Washington, D.C. - Sean Heather, U.S. Chamber senior vice president for International Regulatory Affairs and Antitrust released the following statement today regarding the FTC's proposed rulemaking on employer noncompete clauses:"Today's actions by the Federal Trade Commission to outright ban noncompete clauses in all employer contracts is blatantly unlawful. In 1975, Section 18 of the FTC Act, 15 U.S.C. responding to an Advance Notice of Proposed Rulemaking; responding to a Notice of Proposed Rulemaking; and. Will the FTC issue multiple rulemaking proposals at once, or will it proceed more methodically? If a respondent violates a final order, it is liable for a civil penalty for each violation. Note: This resource is for informational purposes only. Either complaint counsel or respondent, or both, may appeal the initial decision to the full Commission. The FTC's proposed rule would bar even noncompetes that would generally be found to be reasonable under existing state law. One of the major changes replaced the FTCs chief administrative law judge as the chief presiding officer over Magnuson-Moss rulemaking and gave that role to the FTC chair. The notice explains the agencys reasoning for the proposal and asks the public to submit comments. In addition, in some circumstances, the Commission may obtain permanent injunctive relief. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. 1.98(f). The Many Steps in the Mag-Moss Rulemaking Process Under the Patient Right to Know Drug Prices Act of 2018, certain agreements involving biosimilar biological drugs must be filed in the same way. The Federal Trade Commission is taking action against Amazon.com, Inc. for its years-long effort to enroll consumers into its Prime program without their consent while knowingly making it difficult for consumers to cancel their subscriptions to Prime. Sec. . Id. 57a, became the Commissions exclusive authority for issuing rules with respect to unfair or deceptive acts or practices under the FTC Act; Section 6(g) continues to authorize rules concerning unfair methods of competition. The World Radiocommunication Conference 2023, set to convene in November, determines the regulatory approach to a wide range of, Executive Summary A Commission order (except an order to divest assets) generally becomes final (i.e., binding on the respondent) 60 days after it is served, unless the order is stayed by the Commission or by a reviewing court. As the FTC has promised to pursue a number of new rulemakings, this process, known as Magnuson-Moss rulemaking, takes on increased importance. Sec. An official website of the United States government. The Federal Trade Commission approved changes to its Rules of Practice to modernize the way it issues Trade Regulation Rules under Section 18 of the FTC Act, which will provide a roadmap for businesses, stop widespread consumer harm, and promote robust competition. In limited cases, including certain merger cases, the Commissions rules provide that the appeal is automatic. Reg. Unlike the merger review process under the Hart-Scott-Rodino Act, there is no prescribed timetable for the FTCs review. An official website of the United States government. Mag-Moss rulemaking is a slow and cumbersome process. As the FTC explains, the agency's renewed focus on rulemaking is a response to "changed circumstances," including the Supreme Court's AMG ruling (limiting the FTC's redress authority), the insufficiency of the "case-by-case" approach to competition, and the FTC's removal of steps in its Section 18 (Mag-Moss) rulemaking process .

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