our guests may take your seat and you may return to your desk and watch on ftc live.if ftc staff wouldn't mind volunteering their seats, if you could, please, do that. we're also investigating the possibility of overflow seating, and we will let you know at the first break how that's working out. but thank you to those of you who are willing to stand at this point. we're going to do our best to make sure everybody can be comfortably seated for the duration. with that, i would like to introduce the associate directer of the division of privacy and identity protection,. [applause] >> thanks, katie, and thanks, all of you, for coming. it's a pleasure to see so many of you in the audience. it's great to see some familiar faces and also great to see some new faces. i think regardless of whether you're a repeat player or this is your first ftc event, i think we're fortunate enough that we've assembled some of the best and brightest minds on privacy issues here today. so we're sure to have a discussion that's filled with creative thinking, energy and enthusiasm. and speaking

chairman. >> i think this is closer to an ftc issue.atory and enforcement? >> yes. >> ok. >> i would agree with mr. felten. we of work for very long time with the federal trade commission on issues of consumer privacy online. we believe that they are well versed to address this issue. >> ms. wong. >> i feel little bit out of my depth in understanding the jurisdiction between federal agencies, but like anne we have worked for quite a while with the ftc. my experience in watching them of the last 10 years is that they brought very import -- very effective enforcement actions. >> i would say as well that we worked extensively with the ftc so far along this and i have a great deal of expertise in the competition area, which is one of the things that is driving better technology throughout the industry in providing more transparency and more control over data. the ftc has developed a great deal of expertise in this area. >> i'll like to see a joint task force because the fcc will have expertise at the network level and particularly with case

me take your seat and a return to your desk and watch on ftc live. this is obviously an extremely well attended a vent and you're delighted that you could be here. if you could do that. we are investigating the possibility of overflow seating and we will let you know at the first breakout that is working out. thank you for those of you that are willing to stand at this point. with that, i would like to introduce the assertion director of the division of privacy and i did to protection. >[applause] >> thanks to all of you for coming. is a pleasure to see so many of you in the audience. it is great to see familiar faces and it is great to see some new faces and regardless of whether you are a key player at the ftc, or this is your first event, and we are fortunate and that that we have amassed some bright minds. speaking of those attributes, i think that our first speaker in bodies and. he is a creative thinker and he has a lot of energy and enthusiasm. he is no stranger to privacy issues. since he started at the ftc in 2004, he has spoken on a host of

this opening panel and ftc's dialogue on privacy is to explore this dramatically changing landscape. look at ways in which information about consumers and their everyday lives is gather gathered, analyzed and shared among companies from marketing and other purposes. we will talk about the ways in which information may be compiled and used, and ascot panelists for their thoughts on how the collection and use of information offer benefits or create risks for consumers. whether certain information collection and sharing activities are subject to existing rules or laws, including whether there are limits on how long companies can retain information, or how they may use information. whether consumers understand or are aware of the extent of data collection compilation, and whether they can exercise control over that collection and compilation. our format this morning is a bit different than usual. rather than having each panelists offer remarks or make presentations, we plan to explore the issues through a series of a real-world scenarios. the fact pattern to allow the panelists an opport

i think that if we would shift the focus of the policy, and this would include the ftc, i think it isvery important for big companies to think about limitations. i also think that the policy framework needs to expand because i do not believe -- and i am a great believer in privacy-enhancing technology. i do not believe that we will get to the position that simply making all this more transparent to consumers is going to fix everything. i think that's this is important -- i think that this is important, and we have to get more of this in the marketplace. but that is not the answer to all of this, by any means. >> in terms of the efforts that we were talking about earlier, the efforts made by google and yahoo! are very important. but it raises the question about the other activities in the marketplace. what about the company that exists that may not be engaged in creating effort similar to google or yahoo! do you have any view on that? what do we do with the other companies? >> we can regulate them. >> regulate the hell out of them. [laughter] >> i have been doing this for a very long t

there is a joint jurisdiction between the ftc and the fcc so we will have to move forward carefully. >> guest: you mentioned the last thing you want to do is hander or for any investment into these broadband networks. what you think is the best way to spur the deployment of broadband networks and to encourage that investment? >> guest: a great question and i think we are looking at that to the broadband plant due in february and that has been a very wide the encompassing effort. i think there has been 24 public notices so far over 30 workshops and field hearings. what we are learning is a bunch of different things and in the deployment area we have actually done a pretty good job. there of an economic incentives that don't tax networks. beers research had and development tax credits that have worked very well. i think that one the regulatory environment we have created, which is allowed these networks to build out, kind of free of over burdensome regulation, i think that is in power the networks to be built and i think when we move forward with their national broadband planned we wan

the ftc is where consumers complain about that. we have literature that we hand out at our at our reach events. i would direct those people right into the ftc. consumers have to go there directly. >> can they obtain materials from hope now to distribute to their constituents? >> absolutely. >> and the psa's would be available for local consumer organizations for radio stations? we will let you know when that turns up. >> it is coordinated. of what to -- i wanted to add an ironic note to the question that you read. many of the servicers have hired third-party contractors to go out and knock on people's doors. ironically, some people actually got the message about the law cams and they are now working with those people. what we hear is that a third- party contractors do not identify themselves as coming from the servicer. it is some other company, and the borrower, who has heard do not get sucked into one of thesescams will not deal with them. it seems like it should be an easy fix that has not been fixed yet. >> the morning. i'm wit

i would direct those people right into the ftc, but consumers have to go there directly. it is hard to have a counselor get in there. >> for consumer advocates here, like phyllis who are working in communities, can they obtain materials from hope now that they can distribute to their constituents? or offer to people and these psa's will be available to local organizations to promote at their radio and tv stations? we will try to make that list available. >> it is all coordinated, but that is material that will be available. i want to add one ironic little note. phyllis manchin to that many of the servicers -- phyllis mentioned that many of the servicers have hired a third party contractors to go out and knock on people's doors. ironically, some people have gotten the message about the loan foreclosures cams and that are not working with those people. too often, what we hear is that these third-party contractors that the servicers are using do not identify themselves as coming from the servicer. so, it is some other company and the bar or having heard, do not get sucked in

we also strongly support the fdc] \ -- ftc enforcement activities. we are not surprised that criminals ignore current legal requirements to notify the government of their intent to sell illegal substances 3 we urge you to get tough on the criminals. that is why our industry has fought repeatedly for the congress and the administration to provide the drug enforcement agency, the fda, the ftc, and other government agencies the resources they need to enforce their laws. for many years those resources were slashed. but congress has provided a significant infusion of funding which has led to a noticeable increase in activity. like the enforcement activity last week. we welcome this increased government enforcement and support efforts to boost resources further. the criminal soustelle -- who illegally sell steroids do not. there are other investment morses but could be used. -- there are other investment measures -- enforcement measures that could be used. to our knowledge, dea has only proposed listing three additional compounds under the anabolic steroid

we also strongly support the fdc] \ -- ftc enforcement activities. we are not surprised that criminals ignore current legal requirements to notify the government of their intent to sell illegal substances 3 we urge you to get tough on the criminals. that is why our industry has fought repeatedly for the congress and the administration to provide the drug enforcement agency, the fda, the ftc, and other government agencies the resources they need to enforce their laws. for many years those resources were slashed. but congress has provided a significant infusion of funding which has led to a noticeable increase in activity. like the enforcement activity last week. we welcome this increased government enforcement and support efforts to boost resources further. the criminal soustelle -- who illegally sell steroids do not. there are other investment morses but could be used. -- there are other investment measures -- enforcement measures that could be used. to our knowledge, dea has only proposed listing three additional compounds under the anabolic steroid

just real quickly, the problem with the ftc and the problem with the civil enforcement problem here is that this thing is to use technical language, brought in at its core. it's not a matter of separating out the good parties from the bad party, which it usually is in a civil enforcement context. this type of practice just shouldn't be allowed. it is inevitably i have never seen it ever in any of its many new knowledge is ever do anything but result and charged millions of charges overwhelmingly 98%, 99% of people being charged for things they don't know. so i think the problem is regulatory. we're quickly on the federal trade commission, many of these, i'm not sure what the percentages are these days. areas to be privately run through banks in the federal trade commission has limited jurisdiction there. so it's going to be a difficult problem to sort out exactly where the regulatory authority needs to happen in order to control fundamentally this problem of selling access to consumer accounts by retailers and financial stations. >> do either of you -- >> yeah, my view of it is that so

we work with the ftc making sure we are getting information to them when we learn about scams going onwe have, you know, put together a booklet with the ftc we include in all of our conversations with our customers. we continually remind them they don't need to pay for a modification. >> thank you. other witnesses on to answer the question? mr. marks? >> yes, the answer is if you consider those out there doing the fraudulent activity you have to consider them as religious and the only way you can't kill off all of the roaches by stomping them out you've got to cut off the food source. and the food source is the lack of ability some homeowner goes to the servers are to get a solution right then and there. so the focus should be on requiring the server service to get the job done because if you do that then you're going to prevent all of the fraud. clearly it should be outlawed no one should charge anybody to save their home because they should be working with the server servers and nonprofits who don't charge to do that. we have got to focus on hundred% getting the job done. everybody c

we work with the ftc making sure we are getting information to them when we learn about scams going on. we have, you know, put together a booklet with the ftc we include in all of our conversations with our customers. we continually remind them they don't need to pay for a modification. >> thank you. other witnesses on to answer the question? mr. marks? >> yes, the answer is if you consider those out there doing the fraudulent activity you have to consider them as religious and the only way you can't kill off all of the roaches by stomping them out you've got to cut off the food source. and the food source is the lack of ability some homeowner goes to the servers are to get a solution right then and there. so the focus should be on requiring the server service to get the job done because if you do that then you're going to prevent all of the fraud. clearly it should be outlawed no one should charge anybody to save their home because they should be working with the server servers and nonprofits who don't charge to do that. we have got to focus on hundred% getting the job done. everybody

we work with the ftc making sure we are getting information to them when we learn about scams going onall of our conversations with our customers. we continually remind them they don't need to pay for a modification. >> thank you. other witnesses on to answer the question? mr. marks? >> yes, the answer is if you consider those out there doing the fraudulent activity you have to consider them as religious and the only way you can't kill off all of the roaches by stomping them out you've got to stomping them out you've got to cut of and the food source is the lack of ability some homeowner goes to the servers are to get a solution right then and there. so the focus should be on requiring the server service to get the job done because if you do that then you're going to prevent all of the fraud. clearly it should be outlawed no one should charge anybody to save their home because they should be working with the server servers and nonprofits who don't charge to do that. we have got to focus on hundred% getting the job done. everybody comes to the save the dream has tried to work with the s

. >>, i think the ftc for the opportunity to speak here today.or the workshop and to talk about some of the technology behind data collection and data use. as we all realize, the flow of data makes our world of work. it is a fundamental if park -- a fundamental part of our economy and everything we do every day. a simple economic transactions such as making a cell phone call or buying something online, it all impulse the collection of data and the use of data by multiple vendors, simply to make a cell phone call might involve five different companies to collect data as part of making and completing that phone call. what i hope to do in the introduction is to look behind the scenes of little bit at some of the technology that makes all of this happened and some of the business relationships that make this happen. the issue of data collection has been around forever. today, the issue, as the chairman said in his introduction, very interesting to hear about starting out with brandeis, it is technology- driven. we see more interesting uses of data an

. >> the problem with the ftc and the problem with the civil enforcement problem here is that this thing is to use technical language rotten at its core. it's not a matter of separating out the good parties from the bad parties which it usually is in a civil enforcement context. this type of practice just shouldn't be allowed. i've never seen it ever in any of its many modalities ever do anything but you result in chart -- millions of charges, overwhelming, 98, 99% of part time being charged for things they don't know. i think the problem is regulatory. real quickly on the federal trade commission. many of these -- in fact, i'm not sure what the percentages are these days. it's primarily run through banks and, of course, the federal trade commission has limited jurisdiction there. so it's going to be, you know, a difficult problem to sort out exactly where the regulatory authority needs to happen in order to control fundamentally this problem of selling access to consumer accounts by retailers and financial institutions. >> do either of you -- >> yeah, my view of it is that that's sort o

one of the testimonies entered into record said any clawbacks should begin with the ftc. -- s. you see. you were in reliance upon them. -- the sex. -- sec. you were in reliance upon them. we are doubling their salary and their appropriations. we are saying hopefully in the future you will make some changes but we will increase the. we might want to take a look at what is coming down on the floor tomorrow. we should be holding them accountable for what they did wrong in the past and humming the people for tivoli accountable for the failures they made. before we give them any more money, we should make sure there are changes. use said that the trustee is running expenses of $100 million a year. they say the trusties have only paid $1.2 million so far. >> i can clarify that. the trustee's legal fees have been approved for the first 15 weeks. it is running at dollars a week. -- at $1 million a week. at the net investment is not required by the statute. they have said that the expenses are running at the rate of $1 million a week. >> i see my time has come up. it is almost an incent

one of the testimonies entered into record said any clawbacks should begin with the ftc. -- s.you see. you were in reliance upon them. -- the sex. -- sec. you were in reliance upon them. we are doubling their salary and their appropriations. we are saying hopefully in the future you will make some changes but we will increase the. we might want to take a look at what is coming down on the floor tomorrow. we should be holding them accountable for what they did wrong in the past and humming the people for tivoli accountable for the failures they made. before we give them any more money, we should make sure there are changes. use said that the trustee is running expenses of $100 million a year. they say the trusties have only paid $1.2 million so far. >> i can clarify that. the trustee's legal fees have been approved for the first 15 weeks. it is running at dollars a week. -- at $1 million a week. at the net investment is not required by the statute. they have said that the expenses are running at the rate of $1 million a week. >> i see my time has come up. it is almost an incenti

but i assume that the ftc, the fcc and the department will look at all these things have proposed in this is two go forward and all and at this juncture it is a feeling of the association that we should allow the process work. >> one of the concerns i have a mr. chairman and why i would encourage the place your eyes and considerations on this issue of is defined by the silence of. when there is silence in the marketplace because of this type of deal, then tells me that there is great concern in the marketplace and fear that if, in fact, the company were to come have and, against this type of merger, what type of repercussions in the marketplace would, in fact, occur so the fact that there is silence out there is beginning to bother me mr. smith that a lot of their member companies while they may confide in that phone call with you that there's a reason they're not coming out publicly because they don't want to get jammed in their negotiations. and my close here? >> well, i think there are very interested observers of the process and they share the concerns to express. again, we have

one of the testimonies entered into record said any clawbacks should begin with the ftc. -- s. you see. you were in reliance upon them. -- the sex. -- sec. you were in reliance upon them. we are doubling their salary and their appropriations. we are saying hopefully in the future you will make some changes but we will increase the. we might want to take a look at what is coming down on the floor tomorrow. we should be holding them accountable for what they did wrong in the past and humming the people for tivoli accountable for the failures they made. before we give them any more money, we should make sure there are changes. use said that the trustee is running expenses of $100 million a year. they say the trusties have only paid $1.2 million so far. >> i can clarify that. the trustee's legal fees have been approved for the first 15 weeks. it is running at dollars a week. -- at $1 million a week. at the net investment is not required by the statute. they have said that the expenses are running at the rate of $1 million a week. >> i see my time has come up. it is almost an incent

and i think you know one of the things we have to address and one of the reasons i'm glad the ftc ishaving this debate, there is growing tension i think between the usefulness of display information and display advertising, that is going to require, the financial incentives in the market will require information be collected as it gets closer and closer to pi. in order to target information more and i think we really absolutely need fair information practices to start talking about what that information should, what kinds of information should and shouldn't be collected and ultimately how it should be used. >> jules. >> just to quibble, we all throw around this third party thing online in unique way and if we actually explained to consumers their minds would explode. i'm not sure any consumer would choose ups or fedex, unless they cared about labor issues that fedex folks were contractors technically and ups folks were employees. they would care someone was controlled and somebody was responsible. i think what ends up happening online all that much we see some of these third party th