IAB Lobbies Against Proposal To Expand FTC's Power

The online ad industry is sounding the alarm about a new bill currently pending in Congress that would expand the Federal Trade Commission's power by making it easier for the agency to create rules and to bring civil lawsuits.

"There are reasons why there have been limits on the FTC, and we want to see those limits preserved," says Mike Zaneis, vice president for public policy at the Interactive Ad Bureau. "This is legislative priority No. 1 for our industry."

The Consumer Financial Protection Agency Act (H.R. 3126) cleared the House Energy and Commerce committee last week and now moves to the full House, where it's expected to pass. But the proposal's fate in the Senate is uncertain.

The current House version creates a new consumer protection commission while also beefing up the FTC's power in a few key ways. The bill removes administrative hurdles to the FTC's rulemaking ability, makes it easier for the agency to pursue civil litigation, and allows the FTC to target ad companies that aid and abet unfair practices.

These new powers are so significant that industry observers are already saying the bill would effectively make FTC Chair Jon Leibowitz an "Internet czar."

via www.mediapost.com