we also acknowledged the ftc should have authority on that base privacy provision and that there should be enforceable codes of conduct emphasizing the role of voluntary cooperation. now, why do i give you this long, convoluted story? it is conceivable that the browsers, the internet economy more generally, key stakeholders on their own in a voluntary fashion come together to put together the functional equivalent of a do not track programment and that that may come in as a voluntary, industry-led program that then could be enforceable by the ftc as a commitment they've made to improve privacy. the reason i see the slight distinction here is that our framework stops short of any particular mandates akin to do not track and was much more about a framework for how policy, privacy policy should come moving forward. and it emphasized, most certainly, the notion of voluntary enforceable codes of conduct. >> host: which is what the industry wants. they want sort of a more self-regulatory, voluntary thing. it sounds, actually, quite different from what the ftc's -- >> guest: well, i don't know

we have said insuring that there is enforcement authority over the ftc to look into this, commerce and its capacity has a privacy office they can engage on these issues in a bid of a more engaging and collaborative way and it is about voluntary codes of conduct. now we have had some experience outside of privacy with this notion of industry consensus standards activities and i think very positively on health care i.t.. in less than one year, we have seen the private sector step up to the plate and rita technical standards for safe and secure e-mail. did you know that you today can't have your doctor e-mail your medical record to a specialist? in the 21st century economy, you can't have your medical record e-mailed to yourself if his e-mail is inherently insecure and people are concerned about the implications were health insurance -- i'm sorry, hip of the health insurance privacy acts. the industry after hearing the challenge, stepped up to the plate and in 90 days agreed to a technical amendment to how e-mail is operated. basically authenticating u.s. the sender and the

the only thing you're likely to lose with many of these so- called quick fixes, the ftc says, is yourey. >> it's very common for people who are marketing weight loss products to try to pitch them as being quick and easy ways to lose weight. we have been seeing that for years and years and years. >> reporter: when it comes to weight loss the only person with a legitimate claim for you is probably your doctor and if you think you have been scammed, report it to the ftc. for consumerwatch, i'm karen kay fa. >> while you're learning about diet scams, we are learning about how to work hard. >> boy, what a difference a couple of hours makes this morning. this morning it was raining. >> was it raining? i thought i slept through that this morning. >> most of us did. >> but now beautiful sunshine. >> now it's looking nice. we have some partly cloudy skies up there rate now. and looks like the has come to an end. yes, it was raining early on but now the wind is blowing and the rain has come to an end. the cold front is kicking eastward leaving behind a couple of clouds but lots of sunshine in b

the ftc is waiting for the justice department to figure out if it will challenge google's plan to buyoff a ticket making company. >>> and the dow jones closed down more than six points. the nasdaq finished up a little more than two points. make that exactly two points. >>> luck had nothing to do with it. the decision that could come tonight on the future of the morati casino plan. ougog t bk. atst fwa. wi cseuidesi yr arho, u stnaa cte, wi cseuidesi hise a de. yr arho, ke sp rwdte, >>> in just about five minutes tonight, the richmond city council will decide whether to move along with a casino. the pomo indian tribe wants to build a casino at the molati. >>> mark is here now with sports, a lot of eyes on the san francisco giants because they are starting this off a little slow. >> just got a little slower a few minutes ago. the giants lose again. this time a change of venue down in san diego. pretty much the same story. last couple of years they don't fair well but that guy is coming back pretty quick. wilson could be activated as soon as tomorrow. but he probably would fill this posi

. >> the do not call registry was enacted in 2003 and to its credit the ftc has brought big enforcementions against companies that violated it. >> like the $5.3 million action against directv, but telemarketers, especially the little guys, are still illegally pestering people. >> it's coming from small-time operators because they believe they can slip through the cracks, and unfortunately they may be right. >> some telemarketers have gone offshore claiming u.s. law doesn't apply to them. >> a lot of the real scammy work-at-home companies trying to defraud consumers are doing mass calls. >> most smart phones now have the ability to block calls and there's software that can redirect your phone number, but there are exceptions to the law. >> charities, political campaigns or legit surveys, you can still receive calls from these sources. >> go to cbsfw.com and click on "connect" to send me your good questions. whoa, i should get mom a samsung fascinate. bright, colorful screen, high-speed downloads, hd video. she'll want videos of grandkids. i'm not ready for kids. what would i name it ? br

developing the ecosystem now that builds on the basic information privacy principal that the ftc has an concept with a private sector is the things we need to start looking at. so when i want to buy something that has the ability to validate that it's really me, it validates i did have creditworthy, it has the ability to see every month i will tell you this now that i agree to but that's all they need to do. and at some point we design the system correctly i say at some john sherman no longer going to do business with this company or they go out of business, whatever the circumstance maybe i have a little confidence that might data that they do have which should be minimized with no longer be accessible. i have the ability to reach in and say almighty that comes back to the. when you start looking at enhancing the privacy piece that is going to be the key part of this. and one of the things i've asked many people including all of you to the is to help build that system. we've built a system that we have concerns about the privacy and kids in principal this gives us the ability to sti

. >> host: typically, the antitrust regulators, justice and ftc, their remedies tend to be one-time divestiture kind of remedies whereas the fcc tends to, quite frequently, impose sort of ongoing business practice, prohibitions or mandates. ands what is your view of that, is that the only path the fcc has in terms of trying to get at the kinds of issues that are public interest issues as opposed to competitive issues? >> host: your right in doj can actually sue to stop a merger, and that's exactly what their ultimate remedy is. but they try to get the parties to agree ahead of time for divestiture, other conditions like that. and so you say it's one time, but a divestiture can be rather permanent and longstanding. >> host: oversight, i guess, is what i was getting at. you do it, and it's kind of done. >> guest: sure. they're not the regulatory agencies for these industries ongoing. in an fcc context historically the fcc would impose conditions that the parties are agreeing to voluntarily ahead of time. and, of course, there is the opportunity for coercion. so companies, i think, come to the fcc

the sec and ftc. i will be happy to arrange that. >> the growth illustrates that federal regulators had failed to keep up with market innovation and development. regulation could not keep up with innovation and dynamic action taking place in the markets. can you ensure that dodd-frank and the regulations will keep pace with the innovations in the financial markets? >> it is a good question. what it does is give us the tools to do that. we have to implement them. previously, we did not have a system where we could look at risk across our entire system. we regulated banks and had regulation of other entities. we have an entire shuttle banking system developed and we had all this risk being taken on by firms that were not subject to regulation. aig is a classic example. there was no federal regulation of daiichi and it engaged in derivatives that were destructive. we have wound that down and there is the reason they will repay the government every dollar we gave them. >> we heard testimony earlier and on

there is the consumer side, the ftc, and number of things related to consumer behavior and what we do in this country. there is a whole separate aspect of several activities -- cyber activities and cyberattacks and cyberwar. won a thing to recognize -- one thing to recognize is, going back to the at tradition issue, cyberwar and the use of the war fighter, is figure out what attacks come from where, what kind of isolation occurs. and what is the definition of the cyberwar? i think are a number policy issues when we start to talk about how it is used in war that have to be worked out as well. host: what other parts of the world or countries do you suspect or threats in the area of cybersecurity to this country? guest: i think any country that has a very smart population that is highly educated and can take up the types of technology we are talking about either wea ponize them or in a direction that it can be used offensively. china is a common place where people think the attacks are coming from. host: kirk on the democrats' line for randy sabett. caller: love your show, love you guys

the ftc and the supreme court. the supreme court does not have restrictions on how the justices to communicate with each other. based the my personal observation, having to rule against more than two people were not having to rule has meant that one institution has better internal deliberation than another. but both advantages and disadvantages. a lot of this is through the personalities are, what the chairman does -- he moves with great frequency to make sure they have ample opportunity to talk about these issues. the other commissioners are arranged their own meetings with each other. it is a cumbersome system. i am not sure that it is preventing effective deliberation and discussion within the commission. i have seen situations that do not foster great collegiality and may not fostered good decision making. it is a good decision -- discussion on both sides. the chairman has not expressed a view. i am sure he would welcome the opportunity to talk to chairman stearns or others about the proposal. >> do any other p

there is the consumer side, the ftc, and number of things related to consumer behavior and what we dothis country. there is a whole separate aspect of several activities -- cyber activities and cyberattacks and cyberwar. won a thing to recognize -- one thing to recognize is, going back to the at tradition issue, cyberwar and the use of the war fighter, is figure out what attacks come from where, what kind of isolation occurs. and what is the definition of the cyberwar? i think are a number policy issues when we start to talk about how it is used in war that have to be worked out as well. host: what other parts of the world or countries do you suspect or threats in the area of cybersecurity to this country? guest: i think any country that has a very smart population that is highly educated and can take up the types of technology we are talking about either wea ponize them or in a direction that it can be used offensively. china is a common place where people think the attacks are coming from. host: kirk on the democrats' line for randy sabett. caller: love your show, love you guys prov

the commission model which has worked well for the fdic, fec and ftc would help ensure that the actions of the cfpb are measured, nonpartisan, and resolved in alice high quality rules and effective consumer protection. consistent with our support for commission structure, icba supports efforts to strengthen prudential records were review of cfpb rules which is extremely limited under the dodd-frank act. icba supports congressman duffy's bill, h.r. 1315, which would change the voting requirement for an fsoc be dealt from a two-thirds vote to a simple majority. excluding the cfpb director. the proposal would also change the standard to allow for a veto of a rule that is inconsistent with a safe and sound operations of the united states financial institutions, the current rule puts standard, puts at risk the safety of status of the banking system or stability of the financial system as a whole. is it impossible to meet and would let stand rules that are extremely harmful to banks and to consumers. while this change would improve cfpb rulemaking, icba is proposal in which that would further

. -- the ftc moved on to the next one. they would then have a legal enforcement mechanism to deal with them affectively. hear the chairman explains one of the three rules that make up the proposed regulation. >> through adopting a band of unreasonable discrimination, it would make it clear are not approving fast lanes for some companies butot others. >> right w the commissioners are poised to take a ve on this proposed regulation. >> that rulemaking may culminate as early as december of this year. >> i am here at d.c. headquarters where the commissioners of the vote on the regulation on december 21 of 2010. the result was a vote in favor of the regulation. >> so why did the fcc pursuer regulatory past rather than legislative? you may be able to find a clue and the results of the midterm elections. republicans gained control of the house and took away the democrats' supermajority in the senate. we found an interesting fact and the results. out of 95 candidates for congress who pledge their support for net neutrality, not el

to other independent federal agencies including those responsible for consumer protection like the ftc. today almost all independent agencies follow this model. moreover the decision to place a single director in charge of the bureau far from being essential to the original conception of the agency was made quite late in the legislative game. the original draft bill proposing a consumer protection agency included a commission as did the bill that passed the house in 2009. second we think the chamber believes that a commission will insure better, impartial decisionmaking. collaborative the liberation among the commission was the first few of expertise and background would be the better policy outcome. by contrast beaters to buy an individual director is likely to lead to an approach over the years. the cftc has a tough act to perform. more stringent rules and stricter enforcement will protect some credit users from fraud as -- we agree with that. as has also been pointed out it could lead to higher prices and access to credit with potentially significant adverse implications for consume

historically, in many, many cases, there was a gap that could be very long between the time between doj or ftc ruled on a transaction or the state governments would have to do it and the fcc. and we brought that gap way down. it is the kind of thing that can legitimately dradrive a company crazy and end up with inconsistent decisions. so we worked very hard to make the process more efficient and we have. >> there are three democrats are now on the commission, two republicans. the fact that you're a democrat, does that mean that the president of the united states or white house staff can call you and say "this is what we think on things"? >> no. >> let me ask you about not neutrality. that is a buzzword for a while. can you explain in simple language what net neutrality is? >> a term that we use is open internet, which i think is a more descriptive term. net neutrality, fundamentally, is the right and ability for people to send and receive lawful content online. whether you're a person with a point of view and you want to put it on the internet for the audience to receive, whether you are an en

. -- the ftc moved on to the next one.y would then have a legal enforcement mechanism to deal with them affectively. hear the chairman explains one of the three rules that make up the proposed regulation. >> through adopting a band of unreasonable discrimination, it would make it clear we are not approving fast lanes for some companies but not others. >> right now the commissioners are poised to take a vote on this proposed regulation. >> that rulemaking may culminate as early as december of this year. >> i am here at d.c. headquarters where the commissioners of the vote on the regulation on december 21 of 2010. the result was a vote in favor of the regulation. >> so why did the fcc pursuer regulatory past rather than legislative? you may be able to find a clue and the results of the midterm elections. republicans gained control of the house and took away the democrats' supermajority in the senate. we found an interesting fact and the results. out of 95 candidates for congress who pledge their support for net neutrality, n

historically, in many, many cases, there was a gap that could be very long between the time between doj or ftc ruled on a transaction or the state governments would have to do it and the fcc. and we brought that gap way down. it is the kind of thing that can legitimately dradrive a company crazy and end up with inconsistent decisions. so we worked very hard to make the process more efficient and we have. >> there are three democrats are now on the commission, two republicans. the fact that you're a democrat, does that mean that the president of the united states or white house staff can call you and say "this is what we think on things"? >> no. >> let me ask you about not neutrality. that is a buzzword for a while. can you explain in simple language what net neutrality is? >> a term that we use is open internet, which i think is a more descriptive term. net neutrality, fundamentally, is the right and ability for people to send and receive lawful content online. whether you're a person with a point of view and you want to put it on the internet for the audience to receive, whether you are an en

ftc's says something what about what we say and what we do. -- the fec says something about what we say and what we did. just last week there was an announcement about a debate in south carolina. first they said you did not have to be an officially announced candidate to attend the debate. the potential candidates have been slow in announcing this year. at the last minute, they did decide that you do not have to be an announced candidate but you have to have at least an exploratory committee. those types of things help you make the decision, if you're not quite ready to make a decision. you think it would be in a bandage to attend the debate, then you go ahead and -- an advantage to attend the debate, did you go ahead and establish an exploratory committee. this will help to evaluate the support in part of the answer i gave earlier has to do with looking for that and seeing it and i see a lot of support. sometimes you get a lot of support from very vocal supporters, and you do not know whether they are pulling your not, not intentionally. but how many people are there? there is a lot mo

. -- the ftc moved on to the next one.y would then have a legal enforcement mechanism to deal with them affectively. hear the chairman explains one of the three rules that make up the proposed regulation. >> through adopting a band of unreasonable discrimination, it would make it clear we are not approving fast lanes for some companies but not others. >> right now the commissioners are poised to take a vote on this proposed regulation. >> that rulemaking may culminate as early as december of this year. >> i am here at d.c. headquarters where the commissioners of the vote on the regulation on december 21 of 2010. the result was a vote in favor of the regulation. >> so why did the fcc pursuer regulatory past rather than legislative? you may be able to find a clue and the results of the midterm elections. republicans gained control of the house and took away the democrats' supermajority in the senate. we found an interesting fact and the results. out of 95 candidates for congress who pledge their support for net neutrality, n

. >> we want the ftc to stop your baby can read from false and deceptive marketing and we want your babyd to offer refundses to the parents who have been duped. >> this is not a short-term effect. >> reporter: duped, the complaint says, by this man. [ applause ] >> reporter: dr. robert titzer, the creator and ceo. he callses himself an infant learning expert. his name and face appear on efg. he agreed to sit down with us for our initial story. >> we are changing the way people are looking at reading. >> reporter: we have spoken with child development experts from some of the most prestigious universities like harvard, yale, tufts, nyu, cornell, penn and the national association of school psychologists, national center for infants, toddlers and families. they say the program is not only misleading but false. >> well, they are all yonge. >> reporter: you're saying they are all wrong? >> yes. i'm saying they are all wrong. >> reporter: he says the program is backed by scientific research. while he acknowledges it all starts as memorization, he says it leads to reading. >> we have a book ful

can you tell me what you are currently doing to work with the ftc on this issue? >> again, i'd have to get back to you on -- i know we have a number of task forces and working groups with them, but i would have to get back to you with the specifics. >> i appreciate that. a while back i saw representative peter king, chairman of the homeland security committee in the house, say on tv pretty categorically that there was no cooperation from the somali community or from community leadership in minnesota after a very small number of members of that community went to somalia to train with al-shabab. my experience is that no one is more upset about what happened than the twin cities' somali community itself, and my understanding from talking to law enforcement is that there has been real cooperation from the community in minnesota. is that your understanding? >> yes, sir. i think that the somali community in min annapolis was -- minneapolis was taken aback by the number of young men who had traveled to somalia to work withal shah -- al-shabab and that community understan