federal trade commission

Federal Trade Commission
Federal Trade Commission

Presidential advisor Steve Bannon famously told the Conservative Political Action Conference (CPAC) that the Trump Administration seeks to “deconstruct” the regulatory state. The President has issued several Executive Orders (EOs) on regulations designed to implement this policy, including the “two for one” EO, an EO on enforcing the regulatory agenda, and an EO on reorganizing the executive branch.  The three orders collectively promote a policy of deregulation and wholesale elimination of administrative functions deemed overly burdensome to business, redundant, or outdated.

This week, the White House followed through on that agenda by publishing a proposed budget that would impose sweeping budget reductions on almost every federal agency, with the exception of the Departments of Defense and Homeland Security.

The key consumer protection agencies—the Federal Trade Commission, Federal Communications Commission, and Consumer Financial Protection Bureau—are not directly subject to any of these EOs or addressed in the President’s Budget Request. But that does not mean these agencies are in the clear in terms of budget-cutting or deregulatory efforts.  Rather, it seems more likely that the administration is preoccupied with bigger fish at the moment; in the meantime, they are treading carefully.  Which raises the question:  what else is in store for these agencies once they regain the Trump Administration’s focus?

Continue Reading The President’s Regulatory Agenda and the FTC

The Federal Trade Commission recently sent letters to a number of search engine companies regarding what the FTC perceives to be “a decline in compliance” with the FTC’s 2002 guidelines requiring that search engine results clearly and prominently distinguish natural search results from paid advertising. In the letter, the FTC notes that the failure to properly distinguish natural results from paid advertising could create a potential for consumers to be deceived in violation of Section 5 of the FTC Act.

Search engines sell “keywords” to vendors who want their product advertising to be displayed when a person searches for a term containing that keyword. A law firm, for example, might be willing to pay a search engine to prominently display the firm name and website link when someone searches for “law firms New York.” Search results often contain both natural results generated by the search method used as well as paid results. The problem, as the FTC sees it, is that consumers might not be able to tell the difference.Continue Reading FTC Updates Guidance to Search Engine Industry on the Need to Distinguish Between Advertisements and Search Results