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TechFreedom Files Comments on FTC's COPPA Rule Review

In comments (PDF) on the FTC's Review of the rules implementing the Children's Online Privacy Act (COPPA), I urge the FTC to consider ten values that should guide their consideration of revisions to the rules:

  1. Power of Parental Control. Parents should have the opportunity, and means, to decide how much sharing of personal information based on their own values and judgments about privacy, safety and exposure to marketing.   
  2. Simplicity of Parental Control. Parents should be able to exercise such control as easily as possible. 
  3. Privacy & Security. While it might seem obvious that COPPA should enhance, rather than undermine children's privacy and the security of data collected about children, COPPA could, if revised imprudently, result in the collection of more data about children, and increase the risk of exposing that data to those who might mis-use it. 
  4. Education & Citizenship. Digital media should offer children a vehicle for developing as informed citizens of an information society and economy. Using sites and services appropriate for their developmental maturity ensures that they will be well-prepared later on in life, and that our educational system can make effective use of digital tools. 
  5. Expression. Digital media should empower children to express themselves, subject to parental control. 
  6. Abundance. Digital media should be abundant, much like the broader Internet. 
  7. Diversity. Digital media should be diverse, much like the broader Internet. 
  8. Affordability. Digital media should cost as little as possible without compromising quality. 
  9. Innovation. Digital media should, like the rest of the web, constantly improve in quality, sophistication, and interactivity. 
  10. Competition. Competition in digital media and low barriers to entry will promote abundance, affordability and innovation. 

Unfortunately, some of the changes proposed by the FTC in the name of promoting parental control, privacy and security might, despite their noble intentions, make choice more difficult, while also driving up prices, reducing the quality and quantity of children’s content, and diminishing competition.  There is no free lunch, even when it comes to children’s content.

If COPPA is to aid parental authority effectively, while promoting these other values in children’s digital media, the FTC must carefully consider the unintended consequences of revising COPPA.  In particular, the FTC should:

Don't Rush Anti-Piracy Bill, Free Market Groups Urge

House Judiciary Committee to Markup SOPA after Just One Hearing

Today, TechFreedom, the Competitive Enterprise Institute, Americans for Job Security, and Americans for Limited Goverment sent a joint letter (pdf) to U.S. House Judiciary Committee Chairman Lamar Smith and Ranking Member John Conyers urging them not to rush deliberations on the Stop Online Piracy Act (SOPA). The Committee is set to hold markup on the bill on Thursday, December 15, less than three days after SOPA's sponsors released a manager's amendment containing major changes to the lengthy bill.

In their letter, the free market groups note that members have yet to hear testimony from experts versed in the bill's implications for cybersecurity, free speech, due process, Internet governance, innovation, and job creation. The letter follows in its entirety:

TechFreedom Joins Coalition Letter Expressing Concerns about SOPA

TechFreedom joined a diverse array of thirteen public interest groups in a coalition letter expressing concerns about H.R. 3261, the Stop Online Piracy Act (SOPA). TechFreedom's Larry Downes explained his reservations in a statement about the bill and, earlier, at a Congressional Internet Caucus briefing last event last week featuring both sides of the issue. Just as we have been outspoken in our skepticism about other forms of Internet regulation—especially "net neutrality"—we worry about the unintended consequences of this bill.  

We are, of course, strong believers in property rights, and are serious about enforcing copyrights and trademarks. SOPA as constructed would come at too high a cost to lawful Internet expression and communication. The bill would lead to years of costly litigation, creating potentially massive regulatory uncertainty for one of America's most innovative wealth creating sectors." Its meaning would essentially be decided by the courts, not Congress, as recently explained by Ryan Radia of the Competitive Enterprise Institute, which also joined the letter.

The letter's concerns include the following:

We do not dispute that there are hubs of online infringement. But the definitions of the sites that would be subject to SOPA’s remedies are so broad that they would encompass far more than those bad actors profiting from infringement. By including all sites that may – even inadvertently – “facilitate” infringement, the bill... [means] a nondomestic startup video-sharing site with thousands of innocent users sharing their own noninfringing videos, but a small minority who use the site to criminally infringe, could find its domain blocked

[SOPA's] private right of action.... would bypass and effectively overturn the basic framework of the Digital Millennium Copyright Act (DMCA), by pushing user-driven sites like Twitter, YouTube, and Facebook to implement ever-more elaborate monitoring systems to “confirm,” to the satisfaction of the most aggressive and litigious rightsholder, whether individual users are exchanging infringing content....

DNS-filtering is trivial to circumvent and will be ineffective at stopping infringement.... but [would set] a precedent for other countries, even democratic ones, to use the same mechanisms to enforce a range of domestic policies, effectively balkanizing the global medium of the Internet.

In short, we urge policymakers to maintain a healthy skepticism about regulation of the Internet. That requires asking hard questions about crafting enforcement tools that are narrowly tailored to the problem—and consistent with the values of constitutionally limited government and the rule of law.

TechFreedom Files Amicus Brief in Sorrell v. IMS Health

TechFreedom filed an amicus brief today urging the Supreme Court to strike down a Vermont law restricting the use of data for marketing name brand pharmaceuticals to doctors — a practice called "detailing." The Second Circuit struck down the law last November as an unconstitutional restriction on the commercial speech rights of companies that process data about doctors' prescription histories, because Vermont's asserted justifications for the statute-—reducing drug costs and protecting privacy--were unsubstantiated. Vermont then appealed to the Supreme Court.

Richard Ovelmen, a Partner at Jorden Burt LLP, long-time First Amendment litigator, and TechFreedom's pro bono lead counsel on the brief stated, "I believe the Supreme Court will declare Vermont's gratuitously paternalistic law unconstitutional." Ovelmen denounced Vermont's obvious intention to use this opt-in requirement to suppress speech recommending the use of name brand drugs over generally cheaper generic versions. "The Court has repeatedly stated that the First Amendment prohibits a state from discriminating against the dissemination of truthful information because it fears that the speech will cause recipients to make decisions it does not like."

TechFreedom joined with other free speech advocates last year in a broader amicus brief urging the appeals court to strike down Vermont's law. TechFreedom President Berin Szoka explained: "Several Justices have called for the court to abolish its distinction between commercial and non-commercial speech to protect all speech equally. But so long as the Court maintains its double standard, it must apply the highest level of First Amendment scrutiny to regulations affecting both forms of speech. This case is a perfect example of how restrictions on the free flow of data can burden not just marketing but also research, medical care, journalism and even sound policymaking."

The so-called "data miners" who won at the appellate level process data from pharmacies about what kinds of drugs doctors prescribe, de-identify the data to protect patients' privacy, and then transfer that processed data to a variety of downstream users, including drug companies, researchers, journalists, and health policymakers. The Vermont law requires that doctors opt-in before drug companies may use data about their prescription patterns to market drugs to them. While the law restricts the use of prescriber data only for drug marketing purposes, it would effectively shut off the availability of processed data for other purposes because only "detailing" can financially sustain data processing.

"Vermont has invented a specious privacy rationale for a law that does nothing to protect patient privacy," said Szoka. "By applying strict scrutiny here, the Court can provide a clear framework for lawmakers to reconcile privacy and free speech. Vermont's law clearly fails that test, but strict scrutiny won't prevent future lawmakers from enacting effective laws narrowly tailored to addressing real, not imagined, privacy problems. As data about an audience's likely interests becomes more and more essential to making all forms of speech effective, privacy and free speech will increasingly clash—unless the Court applies the logic of its past decisions to clarify that the First Amendment remains alive in the age of personalized messaging."

Berin Szoka is available for comment at media@techfreedom.org

TechFreedom is a non-profit, non-partisan technology policy think tank. We work to chart a path forward for policymakers towards a bright future where technology enhances freedom, and freedom enhances technology.

TechFreedom Comments on the FTC's Preliminary Staff Report on Privacy

Testimony on the FCC's Net Neutrality Report & Order

House Judiciary Committee's Subcommittee on Intellectual Property, Competition & the Internet

Larry Downes, a TechFreedom Senior Adjunct Fellow and author of Unleashing the Killer App and other bestselling books about the Internet, will testify today on "Ensuring Competition on the Internet: Net Neutrality and Antitrust," a hearing of the Subcommittee on Intellectual Property, Competition and the Internet, U.S. House of Representative's Committee on the Judiciary.

His written and oral testimony dissect the net neutrality rulemaking approved by the Federal Communications Commission in December, 2010. "I share the enthusiasm of all five Commissioners—and not just the three who voted to approve the new regulations—for the Open Internet," Downes writes. "I just don't believe there is any need for regulatory intervention to 'save' this robust ecosystem, or that Congress ever granted the FCC authority to do so." Downes's report details five serious defects in the FCC's Report and Order, including:

The Next Digital Decade

Essays On the Future of the Internet

This unique book brings together 26 thought leaders on Internet law, philosophy, policy and economics to consider, from a wide variety of perspectives, what the next digital decade might bring for the Internet. This book is essential reading for anyone gazing toward the digital future.

The book's 31 essays address questions such as: Has the Internet been good for our culture? Is the Internet at risk from the drive to build more secure, but less “open” systems and devices? Is the Internet really so “exceptional?” Has it fundamentally changed economics? Who—and what ideas—will govern the Net in 2020? Should online intermediaries like access providers, hosting providers, search engines and social networks do more to “police” their networks, increase transparency, or operate “neutrally?” What future is there for privacy online? Can online free speech be regulated? Can it really unseat tyrants? 

Read the book's Foreword and Introduction for more details. You can read, download or buy the book here.

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