control of the ftc and a number of folks so you don't even necessarily have an agreement within what one party on the privacy should look like it gets much for complicated as you start across the uses so i think it is an area without the objective harms that we need to tread very cautiously. >> i think that we have used the sector-based approach to resolve these daring to privacy concerns. we could have a discussion about whether that has been a good thing but essentially, we have different ways that we have tried to approach for checking information that we regard as sensitive like health information and financial information and so we have actually had this kind of incremental approach on this issue over the last several

decades and it's not something that we are unfamiliar with in this country. >> i think that it's important to distinguish the regulation as it is written and has practiced there was a piece in the times a couple of weeks ago, and this was written by an expert health professionals would tell him know i can't tell you that it is, the mother wasn't at all. it wasn't at all. it's just a lot easier to say no with some recognition as an excuse. ..

>> >> i have the question about

data security. the only way to get to a data security is multibillion-dollar a year over your investments of policies practices procedures and technology. i know of the data security is a regulatory issue in marketing issue but we will speak to the regulatory issue. is that a breach of vacation a begin of incentive to force companies to invest in data security? every dollar you put into data security you take it from research and development so where is the approach that government can't take for companies to

invest to make sure we have good data security? i don't think there is a tough and in the position to deal with that downstream defects in and pollutes the database and the consumers are harmed. does that include use and transmission and? >> what is the right role of cover reregulation to create an incentive? >> i speak we have poured data.

i would like to see the ftc step forward with the target brachiate andean the break-in where is the follow-up? how the credit cards were used illegally? >> you took get out of my about. fees that are reported that are not nearly as costly as were first reported. >> they were costly for the company and he tried to do the appropriate cost benefit analysis. >> on the consumer side is

essentially we are our own first line of defense. we understand there will be problems so we need to have resources to alleviate that with the president and the ftc tried to streamline the a identity theft protection and. without a breach beautification and i would advocate for this state laws and don't think they have the integration and they need to protect themselves. >> in to talk about the effect of the data preach -- breach. >> we have up a lot of the

ems. >> for any individual breach there is a huge cost some were born by the consumer directly. most of that is handled at the consumer is held harmless but there is the brandy and cost to the number we have seen is well into the billions. and then talk about $5 billion. there are significant cost. i'll update bad is an incentive to address the problem that doesn't seem to be shrinking.

and the energy commerce committee to have the fcc enforce that as long as you have that standard to grow with technology that is reasonable that is not so different but we do think that is important when we look at the state was and what elements they require. >> we'll take one more question. >> you said something that the ftc doesn't have authority? they have granted rulemaking authority over they have chosen to the of

cost-benefit analysis. which they choose not to because it is difficult for very good reasons. but my question is about to economic analysis. saying that consumers might be concerned so they not adopt certain technologies have you heard that rational from all sorts of policy makers since 2000 and i take we can do better with the ftc leads the way. and if they could give us real data to have a substantive conversation about what are the privacy concerns of the trade-offs for whatever reason that all seem too interested to use the bureau of economics of these issues. so going forward can we get more substantive analysis?

but what would you score using the resources that you have in the bureau of economics on the consumer protection in issue for privacy inundated security. and shows a consent decree as of bully pulpit. without what the trade-offs are. >> spirit that is and currently informed by economic analysis. and to be engaged in the process. certainly in all of the reporting. we have had economic points of view and the reports on data so one of the things

the ftc does is the best economic analysis and we're increasing the to make sure that informs us as well. >> we have time for one more question all the way from australia. >> i have one question for the panel because it seems to be that they are creating these apps and devices there

using a platform or the software as the service if you never heard of privacy by design with the liability and rigo understand how will we be added to that from the whole point of view. >> one of the problems that we have with respect to the small start-ups there is a mismatch between the tools we're used to organizations having a bunch of attorneys

that can talk to the regulators in the bench to privacy for design for each of these that is just not there but at the same time but those that are not in the position right now on that 100 million scale. if this was certainly the case they had much bigger problems. tried to figure out ways to have the engagement between the government with the start-ups in a more positive way is a huge issue. >> bay with the to get that

modular system so you don't have that expertise but i think that kind of standard will evolve. with that of the show security. >> this is best practice? even though they don't have a single warrior. and looking for guidance. the way they have chosen to provide guidance. >> that was the to take work for all the great work they have done with my year and a half on the job but this is important that we have an

entire group and with that complicated topics we are excited as well because you don't have to be of wire you could be the ceo of the small start up to understate and what we are talking about. we are not stopping there so they know that we are there. and encourage people to call and ask questions. great panel. a great discussion. [applause] keep your seats.

[inaudible conversations] >> abigail fillmore the

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