ROUND TABLE

Posted: 09/2002

… FTC Seeking Greater Authority
Over Telecom Sector

"Unfortunately, the [common
carrier] exemption stands in the way of the FTC protecting consumers in this new
telecommunications marketplace … In the consumer protection arena, we’ve seen
telecommunications firms increasingly engage in aggressive business practices,
including fraud and deception, to gain or retain customers and market share,
both in their common carrier businesses and their other businesses … In the
competition arena, the exemption creates serious antitrust enforcement
obstacles. The exemption potentially precludes the FTC from reaching a variety
of conduct that may warrant antitrust scrutiny."

— Sheila F. Anthony, Federal
Trade Commission , in testimony before the Senate Subcommittee on Consumer
Affairs, Foreign Commerce and Tourism on July 17.

"Extending concurrent
jurisdiction to the FTC over telecommunications common carriers would be
counterproductive, as it would lead to confusion. Common carriers would not know
which agency to rely on for advice or which agency’s compliance standards to
follow. The FTC request for concurrent jurisdiction [with the FCC] appears to be
a solution in search of a problem. There is no barrier to effective consumer
protection with respect to common carriers."

–Lawrence E. Sarjeant, vice
president – law and general counsel, USTA, in Senate testimony.

"Lifting the restriction in
certain areas, such as billing, advertising and telemarketing, could ensure that
the agency with the most expertise in these areas is taking a leading role.
However, rescinding the exemption completely could lead to duplication of
government regulation and/or confusion for consumers in certain areas. For
example, telecommunications companies are already subject to the Customer
Proprietary Network Information (CPNI) rules administered by the Federal
Communications Commission, which limit reuse and disclosure of information about
individuals’ use of the phone system including whom they call, when they call,
and other features of their phone service."

Ari Schwartz, associate
director, Center for Democracy and Technology, in Senate testimony.