FTC Takes First Step Toward Rolling Back Regs

The Federal Trade Commission on Monday asked the public to comment on “how federal regulations can harm competition in the American economy.”

“Regulations that reduce competition, entrepreneurship, and innovation can hamper the American economy,” FTC Chair Andrew Ferguson stated. “These need to be eliminated or modified to revitalize a competitive market.” 

The agency's move comes less than one week after President Donald Trump issued an executive order directing federal agencies to repeal what he called “unlawful” regulations.

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The FTC says it's specifically seeking comments on regulations that affect competition -- such as by facilitating monopolies or making it difficult for new companies to enter a market.

It's not yet clear whether the FTC has already flagged some regulations for potential repeal.

In the last several years, the commission passed several sets of regulations affecting digital media. Among other new rules, the agency tightened restrictions on data collection from children by effectively requiring operators of websites and apps to obtain opt-in consent from parents at least twice before transferring known children's data to outside companies that facilitate behavioral advertising.

While the FTC approved those regulations by a 5-0 vote, Ferguson said at the time that there were "serious problems" with the regulations.

The FTC also passed “click to cancel” regulations that aim to make it easier for people to terminate recurring subscriptions to newspapers, gyms, retailers and other businesses. Those regulations were opposed by the Interactive Advertising Bureau and other business groups, and are the subject of a court challenge.

The agency also recently issued regulations banning businesses from purchasing phony reviews, suppressing bad critiques, and engaging in other review-related practices that could dupe consumers -- including offering discounts in exchange for a good review.

The Association of National Advertisers had argued against some of the rules, contending that they could chill legitimate commercial speech. For instance, the group said a ban on offering incentives for good reviews was too broad.

The FTC said Monday it's encouraging “consumers, workers, businesses, start-ups, potential market entrants, investors, and academics” to comment on regulations that might affect competition.

The agency will accept comments until May 27.

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