FTC Needs New Rules for Investigations, Watchdog Says
Sep 8, 2011
From: Mobileda
By Margaret Rock
A new petition is calling for the Federal Trade Commission to clearly define its investigation practices, which may lead to better protection for companies like Twitter, Facebook and Google.
The Center for Regulatory Effectiveness, or CRE, an industry watchdog, says the FTC, which has the authority to ban practices that cause “substantial injury to consumers,” needs to develop new rules to assess whether companies are using unfair tactics.
The agency claims newer technologies, like social media, are subjected to older rules, putting the FTC in danger of not taking “sound intellectual and legal framework for its work.” The CRE, citing calls by three senior White House officials for better regulation of Internet-based companies, warns FTC investigations may be premature and deliver uneven rulings.
Currently, Twitter and Google are in the midst of an FTC investigation. The agency is also reviewing a petition to examine Facebook.
The FTC started the preliminary work for an antitrust case against Twitter, asking various developers whether the company makes it difficult for them to create apps that run on its platform.
Google is defending itself against an FTC probe to determine if the Internet giant abuses its search dominance and monopolizes other online markets like mapping, shopping and travel.
While not facing an official investigation yet, Facebook has drawn FTC attention and warnings concerning its privacy settings.
