On March 17th William E. Kovacic (testimony), Commissioner of the Federal Trade Commission, testified before the U.S. Senate Committee on Commerce, Science, and Transportation Subcommittee on Consumer Protection, Product Safety, and Insurance on “Financial Services and Products: The Role of the Federal Trade Commission in Protecting Consumers Part II” (here).
Summary:
Background info: here, here, and here
- Consumer protection law enforcement and Administrative Procedure Act (APA) rule making
- Rule 5, Unfair and deceptive acts need checks and balances
- FTC seeks to file civil cases, and not use the DOJ as a proxy
- Magnuson-Moss
- Has not been amended in 32 years
- MM trials last on average 38 day w/ 7 years of proceedings
- Changes sought to speed up procedure
- Retain “Prevalence Practices”
- Legislature needs to define “Prevalence Practices”
- Eliminate the hearing process
- Allow oral submissions
- Need to have a statement of economic effect
- More resources will not speed up proceedings
- There are 29 sequential steps in the hearing process
- FTC wants all consumer protection powers except “safety and soundness”
- FTC claims it can handle APA rule making
