WASHINGTON, DC – Speaking at a recent conference in Aspen, CO, Federal Trade Commission (FTC) Chair Deborah Platt Majoras made a comment that has led to widespread speculation that the FTC is about to begin an investigation into broadband connection speed claims frequently made in the advertising for high-speed internet services.“We will continue our consumer protection work… by, for example, holding Internet Service Providers accountable for any false or deceptive representations to consumers concerning the nature of the Internet access provided,” Majoras said, according to the San Francisco Chronicle.
The precise meaning of Majoras’ statement may be outlined in greater detail during a two-day workshop being hosted by the FTC in Washington, D.C. this week, which the FTC has dubbed the “Broadband Connectivity Competition Policy” workshop.
According to a document posted on the FTC website, the agenda for the workshop will include a panel discussion entitled “Quality of Service, Tiering, and Charging Fees for Prioritized Delivery.” A description of the panel discussion included in the agenda indicates the panel will address “Current pricing and data exchange arrangements among the relevant parties; the likely effect on competition in the markets for content/applications and broadband access; the likely effect on innovation at the edges of the Internet and at the network core; the two-sided nature of the broadband market; network capacity constraints and the need for prioritization; and what the end result of prioritization might be.”
Also on the agenda for Tuesday, February 13th, the first day the workshop:
• A “Technical Background” discussion, covering “How data is routed over the Internet; the various segments of Internet access, from the end user to the content provider; how data discrimination can occur, be detected, and be countered by users and content and applications providers; and congestion and potential capacity limitations on the Internet.”
• A panel discussion titled “What Is the Debate Over ‘Network Neutrality’ About?” According to the agenda, the network neutrality discussion will cover “the regulatory changes that sparked this debate; concerns raised by proponents of net neutrality; objections raised by net neutrality opponents; and the potential harm to consumers and competition, with or without broadband connectivity regulation.”
• A discussion of “Discrimination, Blockage, and Vertical Integration,” wherein the panel will cover the “incentives of ISPs to discriminate against or block unaffiliated content or applications; the risks and benefits from such discrimination; and the risks and benefits of vertical integration by ISPs into content and applications.”
Wednesday, the second day of the workshop will kick off with a discussion of the “Current and Future State of Broadband Competition,” with the panel tackling questions such as “Is this market really a duopoly, as some maintain? To what extent do other platforms, such as wireless, satellite, or power lines, compete with cable modem and DSL service? What has happened to prices and speeds over the past few years, and what will happen to them going forward? Is robust broadband competition sufficient to address the potential harms envisioned by proponents of broadband connectivity regulation?”
The second day of the workshop also includes the discussion most likely to cover the possibility of the FTC taking a close look at ISP broadband service speed claims – a discussion called “Consumer Protection Issues.” According to the workshop agenda, the panel will address the “disclosure of material terms in Internet access agreements; what terms are or should be material; the ability of consumers and enforcers to verify compliance with such terms; and privacy issues raised by developing data packet inspection technologies.”
The FTC workshop will also be webcast via the FTC website. For more information about the webcast, refer to http://www.ftc.gov/opp/workshops/broadband/index.html
FTC Issues List of Top Consumer Complaints
In other FTC-related news, the Commission last week released its annual list of top consumer complaints, which, for the seventh year in a row, was topped by complaints related to identity theft.
According to the FTC, identity theft complaints accounted for 36-percent of the 674,354 total complaints received by the Commission between January 1st and December 31st, 2006. Within the general category of identity theft, credit card fraud was the most common form of identity theft reported (25-percent of complaints), followed by phone or utilities fraud (16-percent), bank fraud (16-percent) and employment fraud (14-percent).
After identity theft, the other complaints in 2006 most commonly reported to the FTC were “Shop-at-Home/Catalog Sales” (seven-percent of all complaints), “Prizes/Sweepstakes and Lotteries” (seven-percent), “Internet Services and Computer Complaints” (six-percent), “Internet Auctions” (five-percent), “Foreign Money Offers” (three-percent), “Advance-Fee Loans and Credit Protection/Repair” (two-percent), “Magazines and Buyers Clubs” (one-percent), “Telephone Services” (one-percent) and “Health Care” (one-percent).
“Consumers’ help in stopping unlawful operations is critical,” said FTC Chairman Majoras. “By filing a complaint with the FTC, consumers are making information available to more than 1,600 law enforcement agencies that have access to our secure database.”
To register a complaint with the FTC, consumers can use the online complaint form at FTC.gov, or call the FTC at 1-877-FTC-HELP.
For more information on the breakdown of FTC complaints received in 2006, refer to the FTC website at http://www.ftc.gov/opa/2007/02/topcomplaints.htm
