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FCC, FTC to partner on internet protections after net neutrality overhaul

In advance of the Federal Communications Commission's upcoming vote to overhaul its net neutrality regulations, the agency said it is actively working with the Federal Trade Commission to coordinate online consumer protection efforts.

The FCC and FTC said Dec. 11 that they intend to enter into a memorandum of understanding that outlines which agency will handle various issues in the wake of the FCC's Dec. 14 vote aimed at overturning the Open Internet Order of 2015. The 2015 order classified broadband as a common carrier service under the Communications Act. This classification made broadband exempt from FTC jurisdiction, while also making broadband subject to more stringent regulatory authority under the FCC and enabling the FCC to enforce its net neutrality rules. FCC Chairman Ajit Pai has released an order that repeals the 2015 classification and eliminates the net neutrality rules. Instead, broadband service providers will be subject to a transparency rule requiring operators to disclose when they block, throttle or prioritize traffic. Additionally, the FTC will resume its enforcement over anticompetitive or deceptive business practices.

Under the memorandum of understanding, the FCC will review informal complaints arising from non-compliance with the commission's transparency rule. If a broadband service provider fails to publicly disclose its practices with respect to blocking, throttling, paid prioritization or congestion management, the FCC will take enforcement action.

The FTC, meanwhile, will investigate and take enforcement action as appropriate against broadband service providers concerning the accuracy of those disclosures. It will also monitor and take actions against other deceptive or unfair acts involving broadband service.

The FCC and the FTC said they will broadly share legal and technical expertise, including the secure sharing of informal complaints. The two agencies also will collaborate on consumer and industry outreach and education.

Net neutrality proponents have argued against the new order, saying the FCC is effectively ceding authority over broadband to the FTC, an agency that does not have the authority to make pre-emptive rules that prevent consumer harms before they happen. But supporters of Pai's proposed order argue the FTC takes necessary action against unfair business practices that are likely to reduce competition and lead to higher prices or reduced quality levels.

In announcing the memorandum of understanding between the two agencies, Pai said, "Instead of saddling the Internet with heavy-handed regulations, we will work together to take targeted action against bad actors."