Federal Trade Commission
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Video Transcription
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>> Hello everyone.
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It's Chris again and I'm Cyber's instructor for
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its US information privacy course.
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I hope you're having a great day
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wherever you are across the globe.
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It's a little cloudy here in Maryland but in
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otherwise I'm in very good spirits
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and I hope you are too.
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In lesson 5.1,
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we're going to look at the Federal Trade Commission.
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Now the Federal Trade Commission
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is the only federal agency
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within the executive branch that has the mission of
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both ensuring consumer protection and
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competition protection across a number
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of sectors here in the United States.
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The FTC has oversight over
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commercial companies themselves have
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to comply with it's Section 5,
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Section 6, authorities
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within the Federal Trade Commission Act of 1914,
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the FTC Act of
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1914 in its entirety and a number of other laws.
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Now it doesn't have oversight in governance
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of industries like banking and trucking.
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Does not apply to non-profit companies.
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I followed FTC for some time,
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I looked at it's $5 billion fine
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against Facebook for the violation
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of the FTC Act of 1914,
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specifically for Cambridge Analytica
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and subsequent data breaches.
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I've also followed the settlement
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that it reached with YouTube regarding
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content managers that use
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the YouTube platform for
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violating the Children Online Privacy Protection Act,
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COPPA, by collecting information on children under
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the age of 13 and having children directed advertising.
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The FTC is active and
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is worthwhile for privacy professionals to be
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familiar with it from a consumer protection
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and consumer privacy protection perspective.
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We have several learning objectives.
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We're going to look at the FTC's history and mission,
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we'll look at its responsibilities
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and we'll conclude with
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a discussion on it's
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investigative, and enforcement authorities.
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I encourage you to visit the FTC's website
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to learn more about this important agency itself.
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You have to see it consists of
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five commissioners with a chairperson,
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it's housed in the US Department of Commerce,
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it has the ability
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to investigate violations of a number of laws.
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It has enforcement and
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rule-making authorities
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over the Children Online Privacy Protection Act.
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It has enforcement authority from
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an unfair and deceptive practices perspective
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as defined in the FTC Act of 1914,
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over controlling the saga of Non solicited
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Pornography and Marketing Act that it shares
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authorities with the Federal Communications Commission.
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It also has enforcement authorities
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and shares those responsibilities with
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the US Department of Health and Human Services over
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its Health Information Technology
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for Economic and Clinical Health Act
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of 2009.
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It does that also,
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as it applies to data breaches
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of electronic protected health information,
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it shares those authorities.
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It also has oversight
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rule-making for the telemarketing sales room.
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The FTC Act of 1914 was enacted by Congress.
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At the same time it created the FTC,
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and initially the FTC's mission was one of
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antitrust enforcing the
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>> Sherman Act and the Clayton Act.
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>> In 1938, Congress expanded
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the mission to address then
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unfair deceptive acts and practices.
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Since then the FTC has worked diligently to
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ensure that commercial companies are in
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compliance with its various oversight laws,
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to ensure that they're not placing
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consumers in harm and risk.
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The FTC has two primary missions.
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It has a mission of protecting
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customers from unfair deceptive,
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or fraudulent practices in the marketplace.
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Is also there to make sure that in America that we
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have fair competition and
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protecting consumers from price inflation
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in other practices that might
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result in anti-trust activities.
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The FTC Act of 1914 its Section 5
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>> is deemed by many to be
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>> probably the most impactful
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>> consumer privacy law segment
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>> in US law.
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When we talk about the Section 5,
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it is where it defines what it means when we talk about
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unfair and deceptive practices
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or acts or practices affecting commerce.
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It defines deceptive practices
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as those that involve a mature representation,
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omission, or practice that's likely to
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mislead consumer acting reasonably.
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It also defines unfair acts and practices,
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those that are likely to cause
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substantial injury to consumers,
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which is not reasonably avoided by
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those consumers and not
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outweighed by countervailing benefits.
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What does that mean? That there
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are no offsetting benefits to
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those consumers based on those practices.
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We also have Section 6,
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which gives the FTC it's
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investigative powers really to
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investigate violations of the FTC Act.
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It's Section 9 and that allows
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the FTC itself to
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be able to subpoena companies themselves,
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and to provide witnesses and testimony
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and documentation in cases
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of alleged violations of the FTC Act of 1914.
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Now, it's its Bureau of competition that uses
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the Section 9 subpoena provisions to be able to
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investigate alleged unfair methods of
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competition in other anti-trust violations.
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The Bureau competition can also use what's known as
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Civil Investigative Demands to
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investigate possible anti-trust violations.
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It's Bureau of Consumer Protection also may
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use the CIDs otherwise
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known as Civil Investigative Demands,
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rather than subpoenas to investigate
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possible unfair and deceptive acts, and practices.
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It's Section 20 also allows for the FTC to be
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able to use CIDs
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in cases of violations of the FTC Act.
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Question 1 asks, the FTC roles
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include which of the following choices?
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The answers are B and D. Question 2 asks,
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The FTC's special investigative
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powers are addressed in which sections
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of the FTC Act of 1914 as amended?
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The choices are B, C,
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and D. Question 3
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asks which section of the FTC Act of 1914 as amended,
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gives the FTC its enforcement authorities?
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The appropriate choice is A.
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In summary FTC has
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a far-ranging mission as it applies to promoting
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fair competition within the United States and also
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protecting consumers
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from unfair and deceptive acts, and practices.
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The FTC has evolved over time since the expansion of,
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as mentioned in 1938 to now look at all aspects of
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consumer protection to include
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those companies themselves that might
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be producing and selling products
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that may infringe upon
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the rights and freedoms of individuals.
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Also protections of Children's
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>> Online Privacy via COPPA.
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>> We talked about the FTC
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specific investigative powers as outlined in Section 6,
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9 and 20 of the FTC Act.
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We also talked about its enforcement powers as
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stated in Section 5.
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I strongly encourage privacy professionals
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that are taking this class,
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whether you're supporting public sector or
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private sector organizations to visit the FTC website.
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It also has information there on
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some of the consent decree that it's reached
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with companies themselves that
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have violated the various laws that
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apply to antitrust and anti competition,
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and for the protection of consumer privacy.
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