If you’ve been following the FTC’s lawsuit against AT&T, alleging deceptive and unfair data restrictions, here’s important news.unanimously agreed sit on the bench The decision by the U.S. Court of Appeals for the Ninth Circuit ruled in favor of the Federal Trade Commission on a key issue involving the agency’s jurisdiction. You’ll have to read the opinion for the details, but here’s what Acting Chairman Olhausen had to say about it: “I welcome the Ninth Circuit’s ruling, which is good news for consumers. It ensures that the FTC can and will continue to play an important role in safeguarding consumer interests, including privacy protection, and curbing anti-competitive market practices.”
The FTC filed suit in 2014, alleging that AT&T Mobility LLC failed to adequately disclose to customers of its unlimited data plans that AT&T would slow or throttle their data speeds if they reached a certain amount of data usage in a given billing cycle. For some consumers, AT&T’s restrictions have reached the point where many common applications, such as web browsing or GPS navigation, become difficult or nearly impossible to use, the FTC said.
AT&T dismissed the FTC’s lawsuit, saying the company was a “common carrier” not subject to the FTC act.
The FTC responded that the common carrier exception is activity-based, not status-based—meaning it only applies if an entity actually engages in common carrier activities. The Company’s non-common carrier activities remain subject to the FTC Act.
The district court denied AT&T’s motion to dismiss, but a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit overturned the decision.The Ninth Circuit subsequently agreed to hear the case sit on the bench This is the opinion just announced.this sit on the bench Court Rulings Against the Federal Trade Commission:
We conclude that the immunity under Section 5 of the FTC Act—”except…” . . Common Carriers Subject to Commerce Regulation Act” – prohibits the FTC from regulating “common carriers” solely to the extent that they engage in common carrier activities. By extension, this interpretation means that the FTC can regulate the noncommon carrier activities of common carriers.
The court further held:
This statutory interpretation is also consistent with common sense. The Federal Trade Commission is the leading federal consumer protection agency and has been the primary federal agency for privacy policy and enforcement for decades. Allowing the FTC to police telecom companies for unfair and deceptive off-carriage practices would have real consequences. New technologies create new regulatory challenges. Phone companies are no longer just phone companies. The transformation of information services and the popularization of digital technology mean that telecommunications companies have expanded into areas such as website operation, video distribution, news and entertainment production, interactive entertainment services and equipment, and home security. Reaffirming the FTC’s jurisdiction over activities other than common carrier services avoids regulatory gaps and provides consistency and predictability in regulatory enforcement.
that’s all sit on the bench The court ruled that the FTC could use Section 5 of the FTC Act’s prohibition against unfairly deceptive acts or practices to challenge AT&T’s alleged unlawful conduct in the complaint.
from Tech Empire Solutions https://techempiresolutions.com/en-banc-appeals-court-rules-in-favor-of-ftc-on-common-carrier-issue/
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