Connect with us

FTC

Culture War Comes to Silicon Valley as Sen. Josh Hawley Introduces Bill to Strip Section 230 Immunity from Social Media

Published

on

WASHINGTON, June 20, 2019 — Legislation authored by Sen. Joshua Hawley could signal the start of a new chapter of the culture war: Conservatives directly targeting Silicon Valley tech companies.

On Wednesday, Hawley, R-Mo., announced that he’d introduced the “Ending Support for Internet Censorship Act” (PDF), which would repeal a provision of the 1996 Telecommunications Act that granted online service providers immunity from liability for user-generated content posted on their websites.

The law, known as Section 230 of the Communications Decency Act, has increasingly come to be seen as generous – and perhaps overly generous – in encouraging robust online discussion. Many of the law’s most public beneficiaries – Facebook, Google, Twitter – are now the technology platforms that are America’s largest companies.

As a result, a growing group of tech critics are saying that Section 230 is no longer in the national interest. (See our story last week, “With Google and Facebook Under Fire, Section 230 is at a Tipping Point as More Push for Changes.”)

Section 230 was included in the Telecom Act as a way of incentivizing websites concerned that they would be held liable for the comments of others. It was intended to reverse court rulings holding an online service provider liable for defamatory content posted by users when the tech company employed moderators to enforce terms of service rules.

Hawley’s mission against Facebook

Only six months into his first term, Hawley has garnered attention in conservative media circles by taking up the cause of conservative-identifying social media users. They claim that social media companies who ban or suspend the social networks’ rules against hate speech, threats, and harassment amounts to political censorship, even if done by a private sector actor.

(See our story last month, “Sen. Josh Hawley Accuses Facebook of Addiction and Calls Social Media Worth-Less,” which also touched upon Sen. Hawley’s views about Section 230.)

Now, Hawley says he wants condition providers’ immunity on their ability to convince four of five members of the Federal Trade Commission that they have not discriminated against conservatives when applying their terms of service.

The bill would only apply to platforms with more than 30 million active monthly users in the U.S., more than 300 million active monthly users worldwide, or more than $500 million in global annual revenue.

It would require these giant tech platforms to biannually provide the FTC with “clear and convincing evidence” that “their algorithms and content-removal practices are politically neutral.”

“With Section 230, tech companies get a sweetheart deal that no other industry enjoys: complete exemption from traditional publisher liability in exchange for providing a forum free of political censorship,” Hawley said in a statement.

“This legislation simply states that if the tech giants want to keep their government-granted immunity, they must bring transparency and accountability to their editorial processes and prove that they don’t discriminate.”

Tech industry lobbyists wonder whether they should take it seriously

But industry and legal experts savaged Hawley’s proposal as antithetical to the First Amendment and a throwback to policies long rejected by conservatives, including the Fairness Doctrine that required broadcasters using the nation’s radiofrequency spectrum to grant airtime to opposing views.

Computer & Communications Industry Association President Ed Black deplored the “ludicrousness” of Hawley’s proposal, which he called “an unbelievable disregard for the essence of the First Amendment and attempt to overlay a lens of partisan politics over the communications of millions of Americans.”

“If Congress is serious about tech companies doing more to remove hate speech and illegal content online, putting new restrictions on the legal protection that allows them to do that would be ill-advised,” Black said.

In a statement, TechFreedom President Berin Szoka said that the measure would effectively require internet companies to obtain a license from the FTC in order to operate. It would make them depend on the goodwill of FTC commissioners and the presidents who nominate them.

Szoka, who testified last year at a House Judiciary Committee hearing on conservatives’ allegations of political censorship, predicted that the biannual vote Hawley’s bill requires would turn into a “partisan bloodmatch” in which companies would be presumed guilty and have to prove their innocence.

“The bill would give politicians a gigantic regulatory hammer to use against big tech and transform the FTC overnight into the most politicized regulatory body in Washington,” he said. “Sadly, that seems to be the point.”

Szoka noted that Hawley’s bill would deter companies from making social networks “usable for normal people” by moderating content and combatting abusive behavior, extreme content and disinformation, and suggested such deterrence is meant to benefit Republicans.

“If, as social science research suggests, such harmful content seems to help Republicans energize their base more than it helps Democrats, even truly ‘neutral’ enforcement of terms of service will, on net, hurt the Right,” he said. “That which would explain why Republicans insist on framing content moderation as ‘censorship’ of their views.”

(Photo of Hawley by Drew Clark; Reporter Emily McPhie contributed to this article.)

Andrew Feinberg was the White House Correspondent and Managing Editor for Breakfast Media. He rejoined BroadbandBreakfast.com in late 2016 after working as a staff writer at The Hill and as a freelance writer. He worked at BroadbandBreakfast.com from its founding in 2008 to 2010, first as a Reporter and then as Deputy Editor. He also covered the White House for Russia's Sputnik News from the beginning of the Trump Administration until he was let go for refusing to use White House press briefings to promote conspiracy theories, and later documented the experience in a story which set off a chain of events leading to Sputnik being forced to register under the Foreign Agents Registration Act. Andrew's work has appeared in such publications as The Hill, Politico, Communications Daily, Washington Internet Daily, Washington Business Journal, The Sentinel Newspapers, FastCompany.TV, Mashable, and Silicon Angle.

FTC

Epic Games Settles with FTC for $520 Million

Epic’s $275 million penalty for alleged COPPA violation is the largest to date, according to the agency.

Published

on

Photo of Sen. Maria Cantwell, D-Wash., cropped, in July 2017 by Senate Democrats used with permission

WASHINGTON, December 19, 2022 – The Federal Trade Commission and Epic Games, creator of the popular video game Fortnite, have reached a pair of settlements, totaling $520 million, to resolve allegations that the developer violated the data privacy of child users and deceptively pushed in-app purchases, the agency announced Monday.

The FTC alleges that Epic violated the Children’s Online Privacy Protection Act by collecting the personal data of players under 13 years of age without properly notifying their parents or obtaining parental consent. In addition, the watchdog says children’s game settings by default allowed voice and text communication with other players, exposing them to harm.

“Children and teens have been bullied, threatened, harassed, and exposed to dangerous and psychologically traumatizing issues such as suicide while on Fortnite,” the FTC said.

Epic agreed to pay a $275 million penalty for its alleged COPPA violation, which is the largest penalty for breaking an FTC rule imposed to date, according to the agency. Epic agreed to the second penalty, $245 million, to resolve allegations that it manipulated users into purchasing in-game content through a confusing interface.

“Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough,” Epic said in an online post. “We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”

As a part of the settlements, Epic neither admitted nor denied the claims made against it.

The settlements immediately drew praise: “The FTC’s lawsuit against Epic proves we need stronger online privacy protections for children and teens,” said Sen. Maria Cantwell, D-Wash., in statement Monday. “Kids were bullied, harassed, and threated because Epic designed its games to let them communicate with strangers from all over the world. It’s time for Congress to step up for kids and protect them from online harms and to make sure we have a stronger FTC to enforce against bad actors.”

Continue Reading

FTC

FTC Forum Hears Evidence that U.S. Should Follow European Union Privacy Model

The agency is proposing to use its own authority to regulate tech platforms for their ‘commercial surveillance’.

Published

on

Photo of Digital Content Next CEO Jason Kint from C-SPAN

WASHINGTON September 15, 2022 – The Federal Trade Commission should consider adopting standards established by the European Union’s General Data Protection Regulation to force Big Tech platforms to consent to the use of their user’s personal information, according to the CEO of a digital content trade organization.

The FTC proposed last month to use its authority under Section 18 of the FTC Act to bring “commercial surveillance” – the act of entities collecting personal information and selling them to third-party data brokers – under its authority to further regulate technology platforms. Section 18 is a statute of the FTC Act that grants the commission the authority to implement trade regulation rules for businesses that use tactics that are considered “unfair” or harmful to consumers.

Digital Content Next CEO Jason Kint said during an FTC public hearing on the matter on September 8 that the EU’s GDPR model provides an established practice of requiring companies and organizations to get consent to the use of their data in these contexts.

“Having a pop-up come up [for consent] every time you visit the site…that’s entirely in line with users’ expectations,” Kint said. To comply with GDPR principles, websites shown to users in the United States must ask visitors if they consent to the collection of their data in part to cater certain products to them.

“The user doesn’t want it to happen where their data is being tracked by third parties,” Kint said.

“So, if you’re the party that they’re choosing to interact with for service, providing them that data is very different.”

In August, the FTC announced an rulemaking to consider commercial surveillance as a Section 18 violation of the FTC Act. It its notice seeking comment, the FTC asked questions about what companies should disclose, who would administer the disclosure agreements, and if the FTC should impose limitations on the mechanisms companies use to hide their surveillance practices.

On July 20, the Senate Commerce Committee passed comprehensive privacy legislation a restricting collection and transfer of personal data of U.S. citizens without consent.

The measure has not yet passed the House, but in responding to the August announcement, Energy and Commerce Committee Chairman Frank Pallone, D-N.J., said that it is the responsibility of Congress, not the FTC, “to pass comprehensive federal privacy legislation.”

There are currently more than 120,000 comments on this issue. The FTC is still collecting public statements on this issue until October 21.

Continue Reading

Antitrust

Republican FTC Commissioner Criticizes Biden Economic Officials as Detrimental to Agency

Commissioner Christine Wilson attributes poor results of FTC staff satisfaction surveys to the officials’ leadership.

Published

on

Photo of Christine Wilson, Randolph May, Noah Phillips and Maureen Ohlhausen

WASHINGTON, May 9, 2022 – On Friday Republican commissioner of the Federal Trade Commission Christine Wilson expanded upon released remarks criticizing the leadership of economic officials chosen by President Joe Biden as detrimental to the functioning of her agency and staff.

Wilson pointed to recently administered surveys of FTC staff on satisfaction in their jobs which showed historically poor results for the commission, saying attitudes towards the commission and its work peddled by its Chair Lina Khan, former commissioner and current director of the Consumer Financial Protection Bureau Rohit Chopra and Biden’s special assistant for technology and competition policy Tim Wu are largely to blame for low staff morale.

“We saw Chair Khan’s arrival and a complete disregard for the rule of law and due process, not to mention complete disregard for staff,” said Wilson.

“We saw Commissioner Rohit Chopra arrive at the FTC and begin excoriating the agency and the commission and the staff as being lax and feckless for the last 40 years.”

Speaking at the Free State Foundation’s Annual Policy Conference with fellow Republican Commissioner Noah Phillips and former Republican chairwoman of the commission Maureen Ohlhausen, Wilson cast the commission as an entity in disarray.

She revealed a workplace where commissioners have often been given very little notice on items they will be considering on the agenda of the commission.

Ohlhausen noted a decrease in bipartisan activity from the commission that she felt was present as a long-lasting legacy of commissions past during her tenure as chair, and Wilson described “disdain and marginalization of staff by current leadership” as harmful to the environment at the commission.

Drawing on her recent remarks, Wilson hypothesized that new leadership’s economic worldview draws heavily on concepts from academic Marxism and critical legal studies, a school of thought of which the Republican-maligned critical race theory is an offshoot.

She states that these theories largely play into the view of new leadership that the FTC in the past has not brought nearly enough action to protect consumers.

Also on Friday, Wilson emphasized the need for federal privacy legislation and said she has heard of a “concerted push” in Congress for such legislation to pass soon.

Continue Reading

Signup for Broadband Breakfast

Twice-weekly Breakfast Media news alerts
* = required field

Broadband Breakfast Research Partner

Trending