that to us was a reason enough for the ftc to reopen its investigation. sometimes when a federal agency makes a decision in the space, there is a tendency for other players, state ags, to walk away, thinking that, okay, they resolved the issue. well, that's not the case, because there are other participants, residents, in your state who may be adversely impacted. there are other businesses who have other perspectives on whether their businesses are injured. and so it's incredibly important to me to be open to listening to voices that may not have had a chance to present their views before a federal body. >> so do you think -- you alluded to europe earlier. do you think that the steps taken by the european union in the last couple of years especially, has that been instructive to attorneys general or are attorneys general paying attention to that? >> i can't say that automatic or majority of attorneys general are paying attention to it. i do think that fundamentally there is a different level of value in regards to privacy. and of course the competition la

the ftc enforces u.s. antitrust laws in many sectors that directly affect consumers and their pocket books, such as health care, consumer product services, technology, manufacturing and energy. the ftc is well aware of concerns about the size and reach of large technology companies and their growing importance in consumers' daily lives. the commission will continue to scrutinize tech mergers and conduct by tech firms to ensure not only that consumers benefit from their innovative products, but also that competition thrives in this dynamic and highly influential sector. going forward, i plan to think critically and deliberately about the admissicommission's lm agenda. today i'm announcing the commission will hold a series of public hearings beginning later this year covering issues of substantial relevance to both of our core missions. for example, one of our first hearings will focus on competition and consumer protection implications of the fcc's restoring internet freedom order. we intend to invite all r

and to cite a recent ftc case, the ftc brought investigation, settlement with a company called blue, which was amazon seller. that was reselling handsets by chinese manufacturers. those handsets were found to be sending the complete contents of text messages and contents of the phone to the company's server in china. so were blue to be one of the partners to implement some of the same features come i don't think facebook would have known, or would have had a way to monitor for that. >> you have the compromise of privacy of americans and their information, and becoming a national security issue, as well, because this company is on an american national security watchlist. so it just gets much more serious, and of course, concerning, which is why i am so glad we are having this hearing, mr. chairman, i yield back. >> thank you. >> thank you mr. chairman, i want to thank you and ranking member blumenthal for having his hearing today and think to our witnesses for being here. when mark zuckerberg testified in april, i raised concerns about facebook's business model. resting on to potentia

in july of 2012 to resolve allegations that the firm violated ftc act, which prohibits deceptive and unfair practices affecting commerce. there have since been additional consumer protection concerns flagged against facebook, including reports that over the last decade, facebook established partnerships called application programming interfaces. with approximately 60 mobile device manufacturers in an effort to provide private data channels for those manufacturers. while facebook has since provided some clarity on the purpose of these partnerships, outstanding questions remain regarding the role of chinese telecommunication manufacturers. this hearing follows a joint hearing between the full senate commerce committee and the senate judiciary committee in which we heard from ceo and chairman of facebook mark zuckerberg. the company's data collection and sharing arrangements with third parties and how its user privacy is safeguarded. additionally, i co-authored letters with my colleague, chairman thune and senator wicker, to facebook and strategic communication laboratories -- i'm sorry

the new chairman of the ftc has did before congress inhering in which i testified as well that he is willing to determine to do just that. kim hart: do you intend, do you think the sec and ftc will work closely together to try to figure out if the company is transparent with you guys and therefore compliant with the fcc but the ftc may have considered what that means for consumers and competition landscape come you guys work together on. ajit pai: not only will we, but we are. we have a memorandum of understanding with sign that i spoken to chairman simons about the need to share information on a real-time basis. going forward we will work hand in glove to make sure that consumers are protected, we had a competitive marketplace. kim hart: you talked with reports of investment and infrastructure make sure we get more people on the right side of the digital divide. when we are talking about these large providers and making sure that less regulation will help incentivize them to put more money back into the networks, are you concerned about some of these companies focusing more on the a

>> so this is the ftc, the reality of the situation. which is, the ftc has been active behind the scenes in meeting with hundreds and maybe thousands of developers. but in terms of big, public enforcements, i think we're at a pretty small number at this point in time. >> just a handful, you would say? >> yes. but that's not to say that they haven't been doing meetings and bringing people in, and haven't been making corrections. my point to you, which i think supports what where you're headed is, we need to do some of these publicly, so that there can be some understanding by both my community and the parental community what's expected of them, what's expected of us and how do we meet in the middle. >> and many of the app developers identified in the study are based in lithuania and china. do you think most app developers, including ones located overseas are fully aware of the requirements of copa? and that what you're saying would help is the ftc being aggressive, do you think they're aware? >> it's fascinating because the worlds are co

the ftc has authority on unfair trade practices to take action. the new chairman has stated before congress that he is willing and determined to do that. kim hart: do you intend, do you think the sec and ftc will work closely together to try to figure out if a company is transparent with you guys and therefore compliant with the fcc but the ftc may have concerns about what that means for consumers? you guys work together? ajit pai: not only will we, but we are. we have a memorandum of understanding that the agencies have signed. going to workre and in glove to make sure consumers are protected. kim hart: you talked with -- about the importance of investment. when we are talking about these large providers and making sure that less regulation will help incentivize them to put more money back into the networks, are you concerned about some of these companies focusing more on the already served areas, and help making sure they can accommodate increasing traffic there rather than putting their money into expanding their infrastructure into the hard-to

resolving allegations that the ftc act. there have since been additional consumer protection concerns like against facebook including reports that over the last decade, a focus tablet partnerships called application programming interfaces with approximately 60 mobile device and effexor is in an effort to provide private data channels are those manufacturers. while facebook has since provided some clarity on the purpose of these partnerships, outstanding questions remain regarding the role of chinese communication manufacturers. this follows a joint committee in which we heard from eeo and and chairman of facebook, mark zuckerberg. how it's user privacy is s user privacy is safeguarded. additionally, i co-authored letters with the chairman and senator wicker to facebook. and strategic community laboratories. two provide answers to their per -- asking them to provide answers to their specific dealings with one another. my goal today is to hear from the subject matter expert for commercial, political, and research purposes, th

how does the ftc monitor facebook's compliance? what's the process that takes place once the consent dedegree is entered to see that it's complied with? >> while i can't speak directly to that, i can point you to public academic research that examined that process and in that, kind of in that research, some key points highlighting the difficulty and essentially reviewing kind of these compliance audits that come to the agency. and i can point that to you in testimony later. >> thank you. >> to all three of the-- >> we take you live now on this wednesday to the u.s. senate which today will be considering a spending bill for energy and water projects, the legislative branch, military construction and veterans programs. live coverage of the u.s. senate here on c-span2. the presiding officer : the senate will come to order. the chaplain, dr. barry black, will lead the senate in prayer. the chaplain: let us pray. eternal god, who has created humanity in your image, look upon us and hear our prayers. today, give our lawmakers the desire

emily: stephany, do you think this violates the ftc consent decree? is facebook going to face a fine? tom: -- stefanie: i think probably they violated the consent decree many different ways, first with the cambridge analytica developments and now this. the ftc hasfine handed out today is $100 million, so if they wanted to make waves, they could do a record-setting fine, say $5 billion on facebook, are rounding error to a company that had $40 billion cash on hand in 2017. regulatory action th meaningful to regulators and i do agree there is reputational risk at stake. when i talked to investors, it is -- who cares? emily: exactly. tom, $5 billion for a company the size of facebook, no big. tom: not a big deal, exactly. the question is, is e a viable alternative? if you leave facebook, where do you go? ,we talked about before people are going to instagram. guess who owns facebook? and twitter does not serve the same social purpose as facebook. emily: let's talk about alternatives, stefanie. we have for years talked about whether teens are as attracted t

i'd also like to take a moment to praise the appointment of joe simons to chair the ftc. i strongly recommended joe to the president for that position, and i'm glad that the president selected him. i was particularly impressed by joe's responses at his confirmation hearing to the questions we're exploring today -- how to grapple with concentration in the technology sector. in important respects, the dynamic today harkens back to what we saw in the 1990s when i called microsoft's bill gates to testify before the senate judiciary committee. i hope that joe will bring a more searching eye to these sorts of questions, as we've seen from the ftc in recent years. we're here today to discuss antitrust laws and policy. the goal of antitrust enforcement is to ensure that markets are truly free, because competition is the best way to unlock innovation for consumers. antitrust must be applied in a fair and precise manner, because the free market would always be a better engine for innovation than a government agency picking winners and losers. antitrust is an essential part of our c

you know, there's a new set of commissioners at the ftc. i think, you know, trump anti-trust is difficult to predict, but it's interesting to see that many of the key people that were appointed are not kind of deep libertarians, right? so there's a school of anti-trust that thinks the best an anti-trust is no anti-trust and i think the people who were appointed are not necessarily of that school. i think there are conflicting signs within the ftc, but i think the appetite is growing and i think some of the revelations around facebook have made people wake up to the fact that these platforms have a lot of power, that they have a lot of ways that that power can be abused, whether consciously or unconsciously. and anti-trust is not going to solve all of the issues. but i think the market power that these platforms enjoy is a source of many of the kind of dysfunctions and problems that we're seeing. so it's an interesting time, to say the least. >> the tension around the issue has reached a criminal mass and it's on so many different levels, th

there's no third party involved and no breach of the ftc consent decree, but if you look under the hood if you look at how it actually works, facebook's own system, its platform, treats these phones like apps, and apps are third parties. it's actually a problem between how they describe it publicly and how it works. >> nick, good to talk to you as always. what a story. >>> the chinese telecom giant zte is being rescued by the united stat >> why? >> well, what happened to the concerns about zte and our national security? we'll discuss that on the other side. >> why? >>> but first the judge who give a lenient sentence to an attempted rapist is being removed from the bench. california voters recalled judge aan persky yesterday. he sparked outrage by sentencing brock turner just six months in jail for assaulting an unconscious woman. he could have received up to 14 years in prison. i can't. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.

i do think one implication of the decision is clearly the doj or the ftc or whomever is contemplating a vertical merger challenge. they will read this opinion then say, if we plan on arguing the same style of leverage foreclosure theory, or we plan to embed a bargaining model within our economic argument, you are going to be very careful of the inputs we put into the model. much of the judges opinion reject the inputs in the model. they suggest some sloppiness in the application. josh wright served as a federal trade commission or as a republican commissioner. you both indicated, and i want more discussion on this, that this decision is not necessarily sweeping or precedent-setting in either way. joshua: i have some mixed feelings about that conclusion, to be honest with you. narrow in a sense that it is a very fact specific -- because ant merger cases are -- analysis of whether this particular merger violates the clayton act. narrow in one sense. there has been much discussion in some of the popular press headlines along the lines of, does this loss mean that the doj shuts it down? d

it's obscures the ground here. >> the new change, the ftc will be the new web police.rule out bad actors. >> shepard: what he said is deceptive. if you're a small company and you want equa access to the internet the same way a big company has, they can slow it down if they want to as long as they tell you. no gloom and deem. >> shep, his argument is that this will increase investment which is good for small businesses. there's some bipartisan backlash. senator joe manchin wants to reduce what the senate has undone here. orrin hatch said the white house should have stayed out of this altogether. >> it's a quagmire i went he didn't get into. you saw how difficult it was for the prior administration. it's difficult to fix the problems that arise out of net neutrality. >> this could the way we buy internet. >> hillary vaughn, thank you. top of the hour headlines moments away. stay with us. ♪ no matter when you retire, ensure you still have income every month of your retirement, guaranteed. see how lincoln n help. you might or joints.hing for your heart... but do you take s

. >> the underlying claim for most merger challenges whether by the ftc, doj or private plaintiff are under section seven of the clayton act, the antitrust statute most commonly used, almost exclusively used in the modern era. 100 years for the sherman act, the clayton act as well. so it is the statute that the government agencies use to challenge mergers in the standard is whether they are likely to substantially lessen competition. judges in these cases are in a difficult position at the merger has not happened yet and they are put in a position to predict the effects. you've got economist, customers and documents and i read in his analysis the opinion largely as expressing some skepticism and we can talk and it was too much or too little, really choosing an analysis that was fundamentally centered around economics and the economic evidence put forth by both sides. >> yes, actually a lot to add. i think a couple of things nicer to flesh out the picture of how our enforcement system looks at merger enforcement, like the sprint t-mobile deal that was just announced and also vertical m

the ftc is the only agency that can consistently protect you when you go online. >> can it, though?hat is part of what probably the consumer is concerned about. we see all of these abuses regarding data happening but nobody really going to jail. no huge crackdowns or fines imposed. do you think it's going to take that from the government's end, no matter what the regulator, for people to feel comfortable that something is really going to change? >> i can tell you i recently testified along chairman siemens at a hearing and he was very clear ftc would be an active cop on the beat when it comes to unfair trade practices, unfair methods of competition when it comes to privacy he's an expert in this field i'm very confident that he and the talented staff of the ftc will protect consumers consistently going forward. >> i don't know if i can get you to comment on at&t/time warner. >> we're going to a break, i think. it will be interesting to see the decision. >> that and this, net neutrality, the two big events for the week you must have some thoughts about that case and the potential eff

washington, when you go to the hearings, when you see what is happening at the ftc or on the aboutthey are talking distribution of broadband in rural areas and hard-to-reach areas. that is our member company. we are companies that live and work in these communities, and so obtaining the financing to be able to deploy more, being able to recover the cost of that deployment, ensuring there is a light enough touch of regulation that we can ensure that consumers are protected -- and we do each and every day -- but i the same time also being able to recover our costs and employ the network. this is why when you think of the issues here in washington, and at neutrality decision in december with the decision to roll back title ii is so important to our members, because as a result of that, it created a sense of greater innovation and investment that these companies can now deploy in terms of getting more broadband out into smaller markets and host: matt polka, when you talk about recovering the cost of deploying the broadband, are you talking about including it in an infrastructure plan where

what's needed here to further charge up the ftc, doj, the hill, to deal with this? what's the kind of thing the public needs to be doing to further get them to engage in these questions? >> i think a reinvigoration of a courageous enforcement culture, a law enforcement culture which is different. you know, when theodore roosevelt brought the first cases against -- you were talking about the railroad, against oregon, people were afraid to really use these laws. here's an example. listen, i'm the trust buster. people are behind me if i really just lay out the situation here, and i think we have over the last 30 years -- former antitrust enforcer, kind of shrunk it, become more bureaucratic, eggheaded, bean towning, what's the numbers as opposed to having -- this is a criminal statute, this is a statute very clear intent by congress to do something about, you know, size and about a dominant and monopolistic firms, and that means bringing big cases, right, and i think it's a personnel issue, it's a courage issue. it's hard, among other things. you just need people with

the ftc charged her with brought a couple of months ago, called fairness a massive fraud, and she hadollar penalty, or from being officer in a public company for years. a lot of people think the punishment was too light, that it wasn't commiserate with what was in. emily: a million tests with false results. john: right, and it could be worse than that your were talking about almost a billion dollars in investor money that went poof. to those people who feel the ftc punishment was not enough, there is a second, criminal investigation spearheaded by the u.s. attorney's office in san francisco. that investigation has been going on for two and a half years, and i am told it could result in criminal indictments. emily: john carreyrou, excellent reporting, officer -- author of "bad blood," thank you for joining us. one of the biggest , a step downs because of a twitter account. we will discuss whether you can really be anonymous online. this is bloomberg. ♪ ♪ catfosishing to --sages that go public, this week, the president for the philadelphia 76ers steps down, it was revealed his wife twit

to those people who feel the ftc punishment was not enough, there is a second, criminal investigatione u.s. attorney's office in san francisco. that investigation has been going on for two and a half years, and i am told it could result in criminal indictments. emily: john carreyrou, excellent reporting, author of "bad blood," thank you for joining us. coming up, stepping down from one of the biggest jobs in sports because of a twitter account. we will discuss whether you can really be anonymous online. this is bloomberg. ♪ ♪ emily: this week, the president for the philadelphia 76ers steps down after it was revealed his wife operated four twitter burner accounts and used them to defend her husband's actions anonymously, or so she thought. but to the defense reveal about online identities and whether people are anonymous on twitter or other platforms? our guest joins us from charlotte, north carolina. she was the first female chief information officer at the white house, overseeing the staff under george w. bush. this sounded so many alarm bells, not just that the woman used confidenti

sweeter in dollar terms but disney is saying we have a better shot to actually get this through the ftc. and i'm not in a position to comment on either one. >> obviously, that's in disney's best interest to say that. it's hotly debated and may not even be true >> well, look at the deal that the judge said >> it's a sign of excess in the market not excess in terms what comcast and disney is spending but for both of them to be trading up like this. i get fox trading up, of course. but two acquired spending this kind of money and disney stock >> and playing poker, steve because they are playing poker here, judge. because you don't know which pieces that they're really going to keep and which ones they deal off. like when disney says we can get ours through that because they're trying to put in brian roberts' mind that oh, they're going to spin off sky, or they're going to do this in other words, all of these different pieces -- >> i think comcast loves the assets that they're trying to buy. >> right, i agree. but my point is disney what disney is doing by saying we have a better chance of

experted as a technical to number of agencies including the ftc.e recently served as the chief technologist where he led a number of investigations to technology and internet companies. additionally, david sumpter, professor of medics at a swedish university, although he could not appear today he has made it written testimony for the record titled " why the facebook data could not be used to target personality for the united states election. " i look forward to hearing the testimony of these expert witnesses that i turn to my memberue, the ranking senator blumenthal of connecticut. sen. blumenthal: thank you. my thanks to you for your leadership in having this hearing and to our witnesses for being here. one of the central challenges of thetimes is becoming potential threats posed by the internet. data brokers, terrorist recruitment and continued interference in our election. these challenges and threats are combined with the enormous promise and potential moons of the internet. we have seen, or example to face looks. one is the idealistic technolo

companies have worked through the years with the ftc on how to be helpful on guidance on how to explain to users and a -- in a simplistic way what you are doing with their data, how it is being used, what happens downstream, are you selling it to other users, what is going on? because to get your point, transparency will become even more important. and i think the revelations that we have seen, it has been interesting watching the reaction of some of our policymakers who themselves did not understand how data is being used, what is being collected about them, so you do have to make the choice. do you want the service provided for free in exchange for what is happening, but to make that decision, you have to understand what is happening and parameters around that. and if you don't want that, you have to decide, do i want to pay for the service? and so this is one that i think people are going to have this discussion and people will have to make these value propositions for themselves. and i think what we will see is the regulators either here or europe step in when they think companies a

facebook could be in trouble with the ftc over these partnerships because some of the deals went intoeached a deal with the agency to more tightly control access to your data. facebook isn't the only company under scrutiny over a deal with huawei. the "wall street journal" reports members of congress want to know more about an agreement that they have with google. that deal allows their devices which run on the android operating service to use the android messaging service to send texts and other media. they want to know if that deal has any information sharing. joining me now, an early and current investor in facebook skpk an early investor in google. you seem to be precious end. you seem to foresee where these problems are going to be. i am not going to get ahead of ourselves here because there is more to come possibly. but you suspected this would be the case. put this into terms that my view remembers going to understand. >> in simple terms, facebook saw an opportunity to get on to cell phones when smart phones first began. they didn't have a product that would work on every devic

by the way, where in the world is the ftc?illion dollar tong cebook back into line. their claim in the entire discussion is they didn't have to disclose their deals with apple and so forth because they considered apple to be part of facebook, an extension of facebook. well, wond i wonder if the shareholders of microsoft feel facebook is part of microsoft. we get to decide what's part of facebook. i live here in silicon valley. i'm an investor here, entrepreneur here. regularly i'm asked by people here in silicon valley who agree with me, michael, aren't you afraid -- >> hold that thought,t thought. holdought. >> yes, i am afraid they're going to do that. if you can get in front of congress you could. you can retaliate against people like me. >> we're out of time. we can continue the discussion about what to do about facebook next. michael fur tick is founder and managing partner of heroic ventures. that wraps this hour up for me. i'll see you back here tonight. "deadline white house" with nicolle wallace starts right now. >> h

the underlying claim, whether by the ftc or private plaintiff are under section seven of the clayton act. almost exclusively used in the modern era. 100 years for the sherman act. statute of the government agencies use to challenge mergers. going to stand in competition. yetmerger has not happened and most of these challenges are put in a position to challenge the effect. you have customers, documents pointed at all sorts of directions. i read in the analysis the expressinggely as some skepticism. disagree overd the level of skepticism being too much or too little, really choosing an analysis that was fundamentally centered around the economic evidence put forth by both sides. diana: i think a lot of things my flesh out the picture of how our enforcement system looks at merger enforcement. traditional horizontal mergers like the sprint t-mobile deal announced and also vertical mergers. traditionally, josh is right. it has been a lot of deference given to political mergers to create efficiencies. if you put to be oh together, they can better coordinate assets and eliminate the extra m

joshua: the underlying claim former's merger challenges, whether by the ftc, doj, or a private plaintiff, are under section seven. it is the antitrust statute almost exclusively used in the modern era. it is over 100 years old. act, it is the statute that government agencies used to challenge murders. -- mergers. the challenge is whether the merger is like to stifle competition. most of these challenges, the merger has not happened yet and they are predicting the effects. a battle of economists. if customers and documents pointed and also as a directions. i read in the clayton act analysis judge leon's opinion largely as expressing some skepticism and we could talk and disagree on whether the levels of skepticism are too much or too little. -- an, choosing no houses analysis that was fundamentally centered around the economic evidence before the by besides. i have a lot to add. a couple of things might flush out this picture of how our looks atnt system merger enforcement both in traditional horizontal mergers, like the sprint, t-mobile deal and also, vertical mergers. traditionally, jos

>> the underlying claim whether by the ftc coming doj or private plaintiff are under section seven of the clayton act, which is the antitrust statute most commonly used almost exclusively used in the modern era. the clayton act as well. they used to challenge mergers and substantially lessened. judges in these cases are in a difficult position if the merger is not happen in most of the these challenges and are put in a position to predict the effects. you've got a battle of the economist. you've got customers in documents pointed in all sorts of directions. i read the clayton act analysis of judge leon's opinion largely as expressing some skepticism and we can talk in disagree over whether the level of skepticism was too much or too little, really choosing an analysis centered around economics put forth by both sides. >> guest: yes, what to add. a couple of things might flush out this picture of how our enforcement system or antitrust enforcement system looks at merger enforcement by both traditional horizontal mergers in the sprint t-mobile deal just announced an also vertical merger

the ftc says the organization targeted people, including service members, veterans, and seniors, claiming it could help them start their own online business. according to the complaint, people who paid the $49 entry fee were then urged to spend thousands more on membership packages. some lost more than $20,000. >>> some older workers are hoping extra money from a side hustle will help fund their retirement. that's what the last story was about. well, online investment company betterment interviewed 500 people whose chief source of income derives from the gig economy, and 500 who work full-time and have a side gig. the last group, 67% said the side gig is for financial reasons. a third of those say it was because they had insufficient retirement savings. 16% of all people surveyed said they plan to work a side gig even after retirement. boy, talk about being part of our life now. >> absolutely. >> thanks, michael. >>> hi there, everyone. a warmer day across the entire bay area but you don't notice so much along the coast. check out live doppler 7, san francisco southward, we still have a b

. >> attorney studies ethics of technology and says the ftc need to have guidelines for cgi influencers the impetus is on the legislative branch to say, maybe we need better transparency. there has been a lot of discussion about, technology moving at a much faster pacep than the law able to catch up. >> what do you think could go wrong with cgi models. >> if it is a fictional character. a consumer doesn't know it is real. to a charge excellent that is not a person, that is just a, extended brand. so i think what we would have to worry about, should there be transparency that would be needed about interaction with the brand. >> little mykela is fast growing brand. the model/musician has 1.2 million followers and growing as influen influencer. sporting and promoting designer clothes. creator, robotics ai come of pane, brood maintained an allure of anonymity. >> few clicks. sew it together. clicking. >> ryan tang, vice president of cloe, behind the company to digitize the clothes. >> everyone has their own take what reality should look like. 3 d gives the extra step to increase creativity.

that same year, the ftc and fbi combined received more than 145,000 complaints about the scams.osses topped $100 million. the bbb study says scammers contact their victims to get their personal information every way they can. through cold calling. text messages, internetd pop-ups, mail and social media like facebook. >> fact that they migrated to social media means that is a huge new audience that is introduced. >> facebook told us in a statement, scams violate our policies. we have a dedicated team stand automated systems to help detect and block these kind of scams. baker encourages relatives and friends of older consumers to help them avoid becoming fraud victims by educating them. if you've think you within a lottery, keep stakes, some body wants taxes, for any reason. they're crooks, do not send money. >> baker says the actual number of victims could be up to ten times hyperthan actually often o embarrassed admit are they were scammed. >> that's the "overnight news" for wednesday. for some of you the news continues. for others check back later in the morning. cbs this morni

. >> or the ftc's hands? commissioner o'rielly: they have consumer protection issues. we by taking action have restored their ability to protect consumers going forward. you have antitrust law as well. net neutrality? -- >> what are your thoughts about some of the states adopting net neutrality regulations on their own, specifically california? commissioner o'rielly: i am troubled. it interferes with something that is interstate in nature. we have a commerce clause. nobody can argue the internet is not interstate. it does not stop at political boundaries designed by geography or whatever reason they do not , stop at a state line. it is international. it is something that has to be governed at a national level and we can't have individual states designing rules. 29 states have tried to engage. that is problematic, for providers trying to serve nationwide or regional. we cannot have that going forward. i was insistent the item we did adopt included strong language. i imagine and intend the commission to be engaged preempting such activities if they violate the direction

sterling is lower against the the r, we had a member of ftc leaving -- the man replacing him suggests there should be no rush. a divergence of opinion from the old and the new. , busyn 10 year yields up four bond auctions, basis points. alt corporate news to tell you about today. warning that will have to pull back on investment in the u.k. if the brexit deal isn't reached that ensures goods can flow freely to and from the eu. bmw stressing in the statement the company does remain committed to its four u.k. plants. the warning follows a similar out burst from airbus last week. business is becoming more outspoken with the deadline looming next year. comehing theresa may would in the next few months -- bmw fores well below their lows 2008. china, fair market -- bear market, 20% is what the bear market is -- still below 3000. the view was 3000 was the key holding point. time -- wipingis $1.8 trillion through monday from that high back in january. that is the shanghai composite. this is a wonderful m&a story. -- invas been beside ate down today. -- echostarstar said last week they had a s

. >> hi, i am a summer intern at the ftc from pennsylvania. my question is, how much faith do you have in president trump's promise to relocate some power back to congress and to drain the swamp, so to speak? sen. grassley: let me ask you this. i don't know that -- i think the president is doing what he can do on his own under existing law , trying to drain the swamp through maybe just one example -- for every new regulation, he got repealed two, maybe a couple thousand already. i don't know that he has made any suggestions to us that we ought to change law in regard to draining the swamp, unless you can tell me of something. >> no. >> my question is, it seems with all these investigations, that you mail server, russia investigation, an awful lot of on the shoulder of the department of justice inspector general, michael horwitz. there are hearings in the house and senate. you just had an oversight hearing. how in your opinion is this process working? sen. grassley: a kind of works according to who is inspector general. we have some very good i

between bitcoins and koetter, a cryptocurrency under investigation by the ftc.as been a lot of talk for a long time about this controversial cryptocurrency called tether, which is called tether because it is priced at to one to the dollar. in never deviates from a dollar and used as a quasi-dollar like currency on exchanges. what do they claim of the mechanism is? >> professors looked at trading data about the bitcoin. as soon as it hits certain thresholds, round numbers, $500 increments -- as soon as it reached a certain level below that, they saw tether flood the market and then be converted to bitcoin and then push bitcoin and other cryptocurrencies. arehey say all tethers backed and it is a representation of a dollar being held in a bank. are they alleging there is an artificial creation of new thers that flood into the markets when bitcoin needs the big run-up? >> i think both. they are looking at how the creation of tether is a backstop to bitcoin. in that run-up, and a time its starts to falter, it would start pushing a backup. they do not see it reverse.

to sell the ftc a week ago really is a helpful guidance which will make it easier for institutions toet exposure. a lot of it comes down to reputation management and as a firm, we have our board and legal staff to find out what assets we want to leave it to. we offer three assets on the consumer side and a very wide array of assets on the institutional side. caroline: we will see how you continue to grow. great to have you here, peter smith, ceo of blockchain. -- companies are gaining on regulations. many looking to get in on the action, including snoop dogg's venture capital firm. abigail doolittle spoke with -- canopy'se managing director. focused on the cannabis industry, so we have been around for a couple years. we made a number of investments in companies that support the industry and we are excited to continue leading the way forward in this space and today, we are announcing that we are leading a investment along with imperial brands in oxford and cannabinoid technologies that is going to be continuing to push research toward the medical applications of cannabis for a number o

that same year, the ftc and fbi come of bind received more than $145,000 complaints about the scams.ses topped over $100 million. the bbb study says scammers contract their victims to get their personal information everywhere they can. through cold calling, text messages, internet pop-ups, the mail and social media like face book. >> the fact that they really migrated to social media says it is a huge new audienceinoduc ho >> face book told us the scams strie late o violate our policies. we have a team and systems to detect and block the scams. baker encourages relatives and friends of older consumers to help them avoid becoming fraud vick imti victims. >> if somebody wants money for taxes, third party or any other reason. they're crooks do not send money. >> anna werner, cbs news, new york. >> still ahead. researchers say it could be a melatonin is the body's own sleep ingredient. only remfresh uses ion-powered melatonin to deliver up to 7 hours of sleep support. number one sleep doctor recommended remfresh - your nightly sleep companion. available in the natural sleep section at wa

they're by passing the liability that they put in with the ftc that said you can't play fast and looseyou have to be explicit with users gaining consent. >> neil: tim cook said apple didn't do this. if you're right about this, they did get this stuff. >> these device makers got accesso this data. whether they're storing it's on their own servers, they have not responded -- >> neil: why would they want it? they can study the people buying their technology -- >> but tim cook said he didn't do it. did he lie? >> mark zuckerberg said he didn't do it either. >> neil: but zuckerberg saying this is something that apple would never do. am i missing something? >> you're not missing something. the way these key technological players are categorizing how they're taking data, what they're doing with it, keeps changing. that's the problem. they're creating the rules as they go along. when you look at it, facebook and these big tech companies have the keys to our data kingdom. they're making copies and sharing them with everybody else. so how are we supposed to gain control of our data? looks like i

they voted to repeal the ftc's rules that prevented internet service providers from blocking content. there is a push for congress to bring back net neutrality rules. >>> 5:13. workplace watchdog group is criticizing what he called harsh working conditions at a factory in china that makes devices for amazon. the group has called china labor watch and says workers in china were -- work too many hours, earn low pay, and did not get paid for working overtime picked that plant makes and also the kindle e-reader's for amazon. it is investigating amazon says it asked fox con for an corrective action plan. >>> the supreme court will consider a case involving a sonoma county sheriff's deputy who was shot and killed a 13- year-old boy two sonoma county sheriff's deputy's thoughts andy lopez. the eighth grader was carrying a plastic replica ak-47 gun with its orange safety tip removed. the deputy spotted lopez, got out of his vehicle, and shouted, drop the gun. as he turned around, the shots if they denied the appeal, the parents' suit could go to trial this fall. >>> at the tony awards, the br

right down the phone number and file a complaint with the ftc. call 888-382-1222 or visit the address on your screen. have a problem or tip? give us a call. or submit online. we respond to every call and inquiry. markets latest [ bell ringing ] >>> opening bell there at the new york stock exchange. some reason to cheer today. the dow jumped more than 150 points and stocks traded higher today as investors trade -- to shake off the jitter concerning the trade tension between the u.s. and china with energy shares rising. >>> on to the other top stories this morning. san jose police are investigating the deadly shooting. this one happened yesterday afternoon in south san jose. in a home on misty glenn court. the victim is a man in his 50s and friends say he was a doctor who immigrated from vietnam five years ago. so far no arrests here. >>> and police in san francisco are releasing this image of a suspect in a cold case. this is what investigators believe that man suspected of killing five gay men in the 1970s looks like today. now he's dubbed the do

write down the phone number and file a complaint with the ftc. call 888-382-1222 or visit the address on your screen. have a problem or a tip? give us a call. or submit online. we respond to every call and inquiry. you could generate your own energy, at home. or to save energy, unplug unused appliances. do your thing, with energy upgrade california. are you two getting along? oh, yeah, yeah. [ hiss ] [ gasps ] [ birds chirping] ♪ no matter what you are they're a perfect match. the new ipad and xfinity stream app. hey guys, i'm home! surprise! i got a puppy. add an ipad to select packages for just $5 a month for 24 months. upgrade online now. >>> welcome back. continuing coverage this midday of the murder mystery in southern california. a young father shot and killed in his own tent during a camping trip with his young daughters. the popular and iconic malibu creek park is closed for now as investigators try to solve the murder of the 35-year-old. nbc's migel almaguer reports, the latest in a string of troubling crimes there. >> a family campsite