In order to establish legally binding regulations for the sector, the Federal Trade Commission has just released a new notice soliciting feedback on how tech businesses manage customer data. The submission, which is officially referred to as an Advance Notice of Proposed Rulemaking (ANPR), requests public input on data collecting, algorithmic discrimination, and commercial monitoring.
The notification does not propose any specific rules, which are not expected to be implemented this year. The questions, however, give the impression that the commission is concentrated on the actual harms brought about by data gathering, whether they result from data breaches, ad targeting, or algorithmic discrimination. A lot of attention is paid to how big businesses use automated decision-making processes that could have an influence on customers without their knowledge.
The notice asks, among other things, “which practices do firms employ to spy on consumers?” in full on the FTC website. likewise, “How common is algorithmic bias based on protected classes like race, sex, and age?” Others query if the FTC’s ability to control these matters may be constrained by the First Amendment or Section 230.
Additionally, the FTC has set a public hearing on the new guidelines for September 8th, at which the general public is welcome to testify.
“Firms now collect personal data on individuals at a massive scale and in a stunning array of contexts,” said FTC chair Lina Khan in a statement accompanying the notice. “Our goal today is to begin building a robust public record to inform whether the FTC should issue rules to address commercial surveillance and data security practices and what those rules should potentially look like.”
The concerned companies often have a chance to shape the proposed rules during the rulemaking process, albeit their participation is necessarily limited. When asked how they would react to the ANPR, Google, Facebook, and Apple did not comment right away.
Congressmen are among the groups that have urged the FTC to act in the area of data privacy. A group of Senate Democrats requested new privacy regulations from the commission in a written letter to Khan in 2021.
“Tech companies have routinely broken their promises to consumers,” the Senators wrote, “only to receive wrist-slap punishments after long delay.”
The announcement follows Alvaro Bedoya’s formal confirmation as an FTC commissioner exactly three months ago. Before joining the commission, Bedoya conducted extensive study on algorithmic bias and data privacy. After a 3-2 vote in which both Republican commissioners abstained, the decision to issue the ANPR was made.
Congress has generally stagnated on tangible legislation despite ongoing pressure for a federal data privacy standard, putting out a variety of ideas that have not been able to secure majority support. The American Data Privacy and Protection Act recently passed out of committee in the House but is currently awaiting a vote on the floor and will have a difficult time passing the Senate. Similar initiatives to tighten antitrust laws or control algorithmic processes have also been unsuccessful.
“We got to this moment because of years of inaction,” Sen. Amy Klobuchar (D-MN) told The Verge in a January interview, describing a still-pending bill to prevent discrimination in app stores. “A lot of people talk a big game, but nothing has passed.”
In response, the Federal Trade Commission has taken on several of the most important internet regulation concerns. The commission filed a lawsuit in July to stop Meta from purchasing a VR software studio in addition to the ongoing action it is now involved in to undo Meta’s acquisition of Instagram and WhatsApp. President Joe Biden urged the commission to safeguard the information that might endanger abortion seekers if the Supreme Court overturned abortion rights.
