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House of Representatives

House Commerce Committee Leaders Question Amazon CEO Bezos Over Potentially Fraudulent Reviews

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WASHINGTON, July 9, 2019 — Amazon may be profiting from the sale of products promoted by increasing numbers of fake ratings and reviews, raising concerns among lawmakers.

Energy and Commerce Committee Chairman Frank Pallone, D-N.J., and Consumer Protection and Commerce Subcommittee Chair Jan Schakowsky, D-Illinois, sent a letter to Amazon CEO Jeff Bezos on Tuesday discussing the potential harms of fraudulent ratings and reviews to both consumers and legitimate businesses.

Recent reports have found a significant spike in falsified Amazon reviews over the last year. During the first three months of 2018, only nine percent of reviews were from unverified purchasers, according to ReviewMeta.

By contrast, 58 percent of reviews posted to the platform during the first quarter of 2019 were from unverified purchasers. Of the 1.8 million unverified reviews posted to the platform during March 2019, 99.6 percent were 5-star reviews, skewing product rankings.

An investigation in April by consumer group Which? looked at indicators of inauthenticity such as thousands of unverified 5-star reviews being made on the same day to determine that Amazon “is losing the battle against fake reviews.”

Products with these fraudulent reviews not only dominate the front page of Amazon’s search results but are often labeled as “Amazon’s Choice,” lending them a legitimacy they do not deserve.

“Online reviews significantly affect consumers’ shopping decisions and it is important that Amazon proactively protect consumers from such misleading and harmful behavior,” Pallone and Schakowsky wrote.  “The use of the ‘Amazon’s Choice’ label on these products is of particular concern because your company’s website promotes these products to consumers as ‘highly rated, well-priced products available to ship immediately.”

According to documents obtained by BuzzFeed News, unscrupulous sellers pay as much as $10,000 per month to manipulate Amazon search results in favor of their products.

“These fraudulent reviews can crowd out genuine comments and put honest sellers at an unfair disadvantage,” the representatives wrote.  “Amazon can and should do more to protect consumers from these deceptive practices and we would like to better understand what measures your company is taking to address this issue.”

Pallone and Schakowsky have requested additional information from Amazon by July 30, including details about how the company identifies and prevents deceptive reviews, which product categories are the most affected by this problem, and how Amazon determines whether to label a product as “Amazon’s Choice.”

(Photo of Jeff Bezos by Seattle City Council used with permission.)

Reporter Em McPhie studied communication design and writing at Washington University in St. Louis, where she was a managing editor for the student newspaper. In addition to agency and freelance marketing experience, she has reported extensively on Section 230, big tech, and rural broadband access. She is a founding board member of Code Open Sesame, an organization that teaches computer programming skills to underprivileged children.

Congress

House Committee Passes Three Bills to Reauthorize NTIA and Research Trans-Atlantic Cable and AI

Also discussed were three bills to address electric vehicle laws in Democratic states.

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Screenshot of House Energy and Commerce Committee

WASHINGTON, July 27, 2023 – The House Energy and Commerce Committee passed three bills to the House floor Thursday that will reauthorize the National Telecommunications and Information Administration, direct the agency to conduct a feasibility assessment of a trans-Atlantic fiber optic cable, and conduct a study on accountability measures for artificial intelligence.  

The NTIA Reauthorization Act of 2023 is a bipartisan effort to reauthorize the NTIA and modernize the mission of the agency to meet the needs of modern America. It would eliminate what it calls unnecessary reporting requirements and consolidate current reporting requirements into an annual report. 

It would also require the NTIA to develop common models, methodologies, and inputs to inform federal spectrum management decisions and establish an informing capability to support the agency’s mission to manage federal spectrum use. It would require the NITA to convene a working group to “establish voluntary receiver criteria, rating, or other measures in bands where federal entities are primary or co-primary users.” 

Spectrum refers to the airways used to transmit wireless signals and service Wi-Fi and mobile networks across the nation. Federal agencies currently have licenses for large portions of the bands, and industry leaders are calling for more spectrum to be allocated for commercial use. 

The law would put the NTIA under obligation to conduct cybersecurity efforts, including by submitting a report examining the cybersecurity of mobile service networks and connecting outreach and technical assistance to small communications network providers. 

Representative Jay Obernolte, R-Calif., applauded the bill for addressing critical cybersecurity concerns, claiming that not addressing these concerns would cause problems in supply chain and infrastructure across the nation.  

Mark Johnson, R-Ohio, and Doris Matsui, D-Calif., added support to the bill in its ability to provide the NTIA tools to better achieve its goals and improve its spectrum coordination with the Federal Communications Commission. The representatives agreed that spectrum is critical to American infrastructure. The motion was passed with a minor amendment on a 48-0 vote. 

The Artificial Intelligence Accountability Act also passed the committee with an amendment to define terms such as “trustworthy.” It would direct the NTIA to study accountability measures for artificial intelligence systems used by communications networks and hold public meetings to solicit feedback on the information that should be available to consumers who interact with AI systems.  

Committee members also passed a bipartisan bill, called the Diaspora Link Act, that would direct the NTIA to submit a report to Congress outlining the value, cost, and feasibility of building a trans-Atlantic fiber optic cable that would connect the continental United States with Ghana and Nigeria by way of the U.S. Virgin Islands in order to “enhance the national security of the United States.” 

Clean energy bills

Also addressed were three laws that address clean energy provisions. The Preserving Choice in Vehicle Purchases Act would amend the Clean Air Act to include a requirement that the Environmental Protection Agency evaluates a state’s waiver for vehicle emissions standards to ensure it does not “directly or indirectly limit the sale or use of new motor vehicles with an internal combustion engine.” 

This bill addresses recent California legislation that seeks to require all new cars sold in 2035 and beyond are zero-emission vehicles, which includes electric vehicles and plug-in hybrid EVs.  

“We need to be honest with the American people about how forcing them to switch to electric vehicles plays right into China’s scheme to control our automotive future. China already controls access to critical minerals necessary for EVs,” said Committee Chair Cathy McMorris Rodgers, R-Wash. China controls 76 percent of global battery cell production capacity for EVs and recently outpaced Japan in the largest exporter of new motor vehicles in the world, she said.  

Democrats strongly opposed the motion, claiming that “while Democrats are fighting [climate change] with investments to reduce pollution and grow our economy, Republicans are fighting to take away those investments and reverse our progress,” said Ranking Member Frank Pallone, D-N.J.  

Amendments to remove the section of the bill that would affect existing waivers and delay the effective date until certification that the bill would not cause disproportionate harm to American communities were not agreed to, with votes split on party lines, 27-20. The bill was passed on a 26-22 vote. 

Also considered was the Choice in Automobile Retail Sales Act that would amend previous law to prevent any regulations that mandate the use of any specific technology or resulting in the limited availability of new motor vehicles based on that vehicle’s engine type.  

The No Fuels Credits for Batteries Act would clarify that the EPA “is not authorized to use credits for electricity generated from renewable fuel for purposes of the Renewable Fuel Standard.” Both bills were passed along party lines. 

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House of Representatives

Telecom, Online Marketplace Consumer Protection Bills Pass House Committee

Among the bills sent to the House, the committee passed two on telecom and one on consumer safety.

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Jan Schakowsky, D-Illinois

WASHINGTON, November 17, 2021 – The House Committee on Energy and Commerce passed several bills Wednesday, including two on telecom policy and one meant to address consumer safety when using online retailers.

H.R. 1218, the “Data Mapping to Save Moms’ Lives Act,” H.R. 2501, the “Spectrum Coordination Act,” and H.R. 5502, the “Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act” were all passed unopposed and without amendments.

H.R. 1218 is a bill intended to target broadband resources to areas where “telehealth may be useful in the monitoring and care of pregnant women,” bill co-sponsor Rep. G. K. Butterfield, D-North Carolina, said during the hearing, adding “it is a moral imperative to address the maternal mortality crisis in the United States.” The bill’s other sponsors are Reps. Lisa Rochester, D-Delaware, and Gus Bilirakis, R-Florida.

“To effectively deploy 21st Century resources to address the shocking rates of maternal mortality, the nation must first identify which communities lack adequate Internet access and have high maternal mortality rates. That is exactly what this bill seeks to do,” said Rochester.

H.R. 2501, which is sponsored by Bilirakis, requires the National Telecommunications and Information Administration – an agency of the Commerce Department – and the Federal Communications Commission to update the memorandum of understanding on spectrum coordination, to ensure that spectrum is shared efficiently, and that a process is created to better resolve frequency allocation disputes.

H.R. 5502, co-sponsored by Rep. Jan Schakowsky, D- Illinois, takes aim at online retailers that do not take responsibility for the products that third-party groups sell on their marketplace. Legislators supporting this legislation asserted that this has allowed bad actors to sell unsafe, counterfeit, or otherwise fraudulent goods on common marketplaces like Amazon and Etsy.

“What we’re saying now is very simply that online marketplaces will have to verify that the identity of their higher volume sellers, so they have to take some responsibility,” said Schakowsky. “It’s not just about counterfeiters, it’s not just about defrauding – we are talking about danger every year around this time.”

“This legislation is really going to help the consumers and legitimate businesses that are selling products and becoming victims themselves.”

Amazon has been on the wrong end of state court rulings recently that have made it liable for defective products. Experts on a Information Technology and Innovation Foundation event in May remarked that this could open the floodgates for these types of lawsuits, a contrast to when Section 230 liability protections for platforms have historically been used as strong defenses for these platforms.

Now that these bills have passed their committee, they will be sent to the House to be considered. Should they successfully be passed in the House, they will be sent to the Senate and undergo a similar procedure; if the bills are successfully passed in both the House and Senate, they will then be sent to President Joe Biden’s desk, where he can decide whether to sign them into law.

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Broadband's Impact

House Commerce Committee Aligned on Telecom, Mapping and Supply Chain Security, Says Ranking Member

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Photo from Rep. Cathy McMorris Rodgers' website

March 18, 2021 – House Energy and Commerce Committee Ranking Member Cathy McMorris Rodgers, R-Washington, said Wednesday that the committee was among the most bipartisan on issues including telecom.

Rodgers, who was speaking at the Internet Innovation Alliance with co-chair Bruce Mehlman, said that her Republican colleagues have put forth 28 solutions that would remove regulatory barriers and streamline broadband processes yet demonstrate funding is being spent wisely. She called on the government to ensure cost-effective ways to spend federal dollars.

She said the committee’s priority must be on accurate broadband mapping. That requires funding for more granular data. She also argued for national security against China, including on solar and wind energy products.

Rodgers also said she was excited about low-earth orbit satellites and the potential future they bring in connecting parts of the country with internet that have been “economically unfeasible in the past.”

Asked of her thoughts on virtual learning from home, especially how her 14-year old son with down syndrome is faring, Rodgers said she was completely in favor of reopening schools safely because not all parents have the means to provide optimal learning spaces at home.

Calling herself a working mother who could afford to provide an assistant to help her son through his school day, Rodgers said it was not the best way to learn when compared to in-person schooling.

This came after she said the country has the best networks and “some of the fastest speeds at the lowest prices in the world for internet service.”

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