COMMON CARRIERS WANT MORE INFORMATION ABOUT FTC JURISDICTION BID

Telecom industry remained confused and curious about FTC proposal to regulate common carriers (CD March 18 p1) because legislative proposals didn’t appear imminent. FTC Chmn. Timothy Muris told Consumer Federation of America (CFA) March 15 that FTC was hampered by common carrier exemption that prevented it from examining any issues relating to common carriers. FTC officials told us common carrier exemption was problem for agency in several enforcement and policy areas. In fact, exemption could cause problems for agency as it worked to develop nationwide “Do Not Call Registry” (DNCR), FTC sources told us, because it might not be able to address telemarketing for common carriers.

USTA said FCC should retain its authority over common carrier. “We believe the FCC has ample enforcement authority over common carriers and it has shown no disinclination to use that authority,” said Daniel Phythyon, USTA senior vp-law & policy. AT&T spokeswoman said company officials were “trying to understand what problem would be solved by shifting jurisdiction… We're looking into it.” Other lobbyists said they needed more time to understand FTC proposal.

FTC still has to examine all issues involving common carrier exemption and hasn’t made any specific proposals or requests to Congress, said Anna Davis, FTC congressional affairs dir. Since exemption is written into FTC Act, legislation is needed to remove exemption, FTC officials said. FTC could examine needed changes in legislation through reviews by staff or public workshops, Davis said. Commerce committees in House and Senate would be likely genesis for such legislation, which often is suggested in official FTC correspondence to Hill, she said. No such official request is planned at this time, Davis said, but it’s being considered in FTC. Davis said Hill staffers had been receptive to suggestions of common carrier jurisdiction changes, but she suspected common carriers would oppose idea.

Simple repeal of exemptions would let FTC perform any of its congressionally mandated function on common carriers, an FTC official said, but in his address Muris highlighted advertising, deceptive practices and other consumer protection issues. FTC can conduct antitrust and merger reviews, although Justice Dept. (DoJ) traditionally has enforced telecom antitrust law. Recently, FTC agreed that DoJ should have merger review authority over all telecom, Internet and media mergers, but FTC officials told us common carrier exemption was influential in relinquishing authority in controversial agreement that sparked protest from Senate Commerce Committee Chmn. Hollings (D-S.C.).

FTC receives significant number of complaints on common carrier issues, FTC Comr. Orson Swindle said. Since telecom industry deregulation, industry is more competitive and advertising and billing practices have become issue, he said: “We've found some of the advertising to be incredible. There are a lot of things left unsaid in these advertisements. There’s no end to the number of complaints about billing that we receive.” Swindle said FTC had specific expertise in those areas and should be enforcement agency to address issues.