MURIS PITCHES FTC COMMON CARRIER JURISDICTION TO HOUSE

House Appropriations Subcommittee Chmn. Wolf (R-Va.) expressed interest Wed. in helping FTC gain regulatory jurisdiction over common carriers. At Commerce, Justice, State & Judiciary Subcommittee hearing on FTC budget, Wolf expressed concerns about telecom fraud, to which Muris said FTC lacked jurisdiction to attack certain types of fraud. Wolf showed recent NBC Today show report on “fat finger dialing,” practice where misdialing popular phone numbers, such as 1-800-COLLECT, leads to other long-distance services that overcharge. Muris said FTC’s legislative exemption from common carrier oversight prevented it from dealing with such cases. Muris said news report, if true, was “Exhibit A” as to why FTC needed common carrier jurisdiction.

Muris told Wolf common carrier jurisdiction was one of FTC’s “top priorities.” Wolf said he was unaware FTC lacked jurisdiction and was trying to acquire it. Muris said only legislation could remedy situation and FTC was in process of trying to send up legislative proposals. Wolf said he would express his concerns about FTC’s lack of jurisdiction to Senate Commerce Committee Chmn. Hollings (D-S.C.) and House Commerce Committee Chmn. Tauzin (R-La.). Muris told us that he believed legislation wouldn’t be introduced until next congressional session.

Subcommittee members also expressed concerns about alcohol advertisements on television. Concerns were framed by context of recent study that said drinking killed 1,400 college students per year. Wolf said he was pleased to hear NBC was backing out of plan to televise ads for liquor, and Muris concurred. Rep. Roybal-Allard (D-Cal.) asked Muris several questions on issue and expressed concern about advertising in time slots where 50% of viewers are children, which is allowed under industry self-regulation guidelines. Muris said that alcohol industry engaged in self-regulation on issue and that Better Business Bureaus’ independent review board handled complaints of advertising violations (often made by competing alcohol companies).

Several members also had questions about proposed do- not-call registry (DNCR) that would let consumers opt out of telemarketing calls. Muris said FTC probably would propose that telemarketers be charged fee to fund DNCR. Many states have DNCRs and Muris said FTC didn’t want to preempt them “for preemption’s sake.” “We're spending a lot of time on state issues,” Muris said on DNCR development. FTC request for comments on DNCR expires April 15.

Muris also was questioned about controversial FTC-Dept. of Justice (DoJ) merger review agreement. He acknowledged it was difficult to make distinctions between 2 agencies’ responsibilities in portions of agreement, which he defended, and also acknowledged other points raised by critics. Agreement divides merger review responsibility between entities based on industries, which were allocated according to level of experience each entity has had with that industry, Muris said. Ranking Democratic Rep. Serrano (N.Y.) questioned divisions between certain industries in agreement, citing computer hardware (which FTC would review) and software (DoJ), and agriculture (DoJ) and groceries (FTC). In reference to hardware-software division, Serrano said: “It doesn’t make sense.” Muris replied: “You're absolutely right.”

Muris said division between hardware and software was such contentious issue that a committee had to be created to resolve it. “The agreement was almost cratered over the hardware/software issue,” he said. To settle issue, convergence committee will review potential mergers where “the distinctions are not easy to make.” He also agreed with some of concerns of fellow FTC commissioners. He said he agreed fully with FTC Comr. Sheila Anthony’s short dissent to Muris’s testimony before Senate Appropriations and Sen. Hollings (D-S.C.). Anthony’s dissent said: “While ’streamlining the merger review process’ is a laudable goal that deserves our attention, I am not convinced that the approach agreed to by Chairman Muris and [DoJ] Assistant Attorney General Charles James fully maximizes the unique makeup, experience and institutional assets of the Commission.” Muris said agreement didn’t maximize FTC’s potential, but was most efficient solution for system where 2 govt. agencies competed for cases. Serrano said it sounded as though the FTC’s “hands were tied,” to which Muris responded: “Absolutely.”

Muris outlined FTC’s request for $176.5 million (up $20.53 million) and 1,074 full-time equivalent employees. Part of increase would be for improved computer facilities, which he said was critical if the FTC was going to focus its efforts on Internet fraud and other cybercrime. FTC also trains state and international enforcement bodies on Internet investigations, for which advanced computer equipment is needed, Muris said. “One of our top priorities is to go after Internet fraud,” he said. “To do that, we have to have an upgrade of our computer facility.”