Transcripts For CSPAN2 Federal Trade Commission Confirmation Hearing Part 1 20180217

[background noises] good morning. Today we welcome for nominees to testify before the committee as we consider the nominations to serve as commissioners of the federal trade commission. Joseph simons has been nominated to serve as commissioner and tc chairman and his credentials are impressive. He served as the f tcs antitrust enforcer among other positions of the commission. Most recently he served as partner and cochair of the antitrust group at the law firm of paul, weiss, ripken and garrison. Hes in antitrust and Consumer Protection attorney who was recently served as Vice President for Regulatory International Affairs at delta airlines. Among other credentials she too has worked at the commission serving as chief of staff, the ftc chairman during the george w. Bush and menstruation. Know what is a familiar face. Currently serves as chief counsel to senator john cornyn where he advises on issues including antitrust Consumer Privacy and intellectual property. Finally floyd will is a lawyer who has extensive Government Service and is consumer advocate. He currently serves as senior fellow at the Consumer Federation of american previously served in senior roles at both the Consumer Protection bureau and the Us Department of education. Thank you all for being here. We welcome to your friends and family who are also during this. Not the largest and most Wellknown Agency under the jurisdiction but it is arguably one of the most influential given its mission to oversee competition and Consumer Protection of the american economy. It was founded in 1940 by the direction of congress ever more than one century the commission has evolved alongside trading marketplace dynamics and consumer preferences. It was born out of concern of a time that morning to be done to ensure competitive markets in the United States and to bust the trust that the rent that competition. The commission spoke as soon expanded to conclude a mandate [inaudible]. A common theme bridging the commissions to focus on competition and Consumer Protection is ensuring freedom in the marketplace. Over its history the ftc has been a strong cop on the beat and ensuring that americans reap the benefits from a functioning economy, not one dominated by unconstrained market power. It also made it possible to make is to be confident in their transactions, to spend a penny and grow the economy with the knowledge they are largely protected from the fraud and sheets we do them harm. The agency has not been without controversy. In the late 1970s, for example, the agency drew criticism for its consideration of regulation that would pose major restrictions on Television Advertisements for Young Children in order to reduce the amount of sugar the children each. This Regulatory Overreach led the congress to advance heightened procedural safeguards on the commissions authority to promulgate rules and lead one media outlet to criticize it is the Great National nanny. The assertiveness and breath of jurisdiction has earned of other names as well. More recently, the agency is called the federal technology commission. That nickname is an appropriate one given the commissions increased focus on the american tech sector and the growing influence of Silicon Valley on the american economy. It is my expectation that the ftc will continue its vigilance on the speech. Privacy and Data Security for example warming Consumer Protection concerns in the coming years. These nominees will contend with these issues skipper. Must continue to bring cases with a fine material misrepresentations in the spring unfairness cases where it finds substantial harm. Once again, i want to thank all of you for testifying today and your willingness to fill these critical posts. I turnout or Ranking Member, senator nelson, for his opening remarks. Thank you, mr. Chairman. Thank you to senator blumenthal who is kindly agreed to step in as breaking today since i have to be in the places at once. When the federal trade commission was a small agency it is getting bigger and it is one thing big responsibility protecting American Consumers and whether it involves smalltime global scholars, alltime milliondollar payday lenders or giant Silicon Valley Tech Companies the ftc acts as a cop on the beat that places a whole host of unscrupulous practices that put american pocketbooks at risk and it is not just financial harm, Public Health can also be at stake. In the past the ftc has cracked down on cigarette advertisement aimed at kids or on phony Sports Equipment claiming to prevent concussions. Just recently the ftc and the fda sent warning letters to 11 companies who were touting opioid cessation products and given the depth of the Opioid Crisis in our country it is unconscionable that anyone would prey on vulnerable families in desperate need of help what they do. And while the recent action by the ftc is a positive step it also raises serious questions about why the agency waited so long to address this epidemic Opioid Crisis where was the ftc all these years when they were making medical companies are making claims about opioids . Given the reality it is absolutely essential that the agency fill its mission to protect American Consumers in a nononsense, nonpartisan and independent manner. Unlike other independent agencies it has a long tradition of acting on a consensus basis and the ftcs mission is too important for individual commissioners to let politics or special interests impede the agencys font enforcement work. If confirmed, i expect the nominees and i have met with them privately to continue the tradition of pass commissioners and work in a constructive bipartisan and independent manner. Finally, let me say a word about Net Neutrality. Simply put the ftc is not the agency for Net Neutrality. Despite the image and things the ftc does it does not have the expertise or the resources or the authority to adopt forwardlooking roles to protect broadband consumers. That is in the sec and that is why you will see coming to the senate a cra to restore the fccs critical Net Neutrality protections. That cra though is not inconsistent with my continuing belief in the longterm as i have discussed over and over as senator thune and i have consulted collaborated on this that only a lasting, bipartisan, and neutrality legislation with real protection can bring the certainty necessary to fully protect consumers and preserve the fccs authority. I thank you, mr. Chairman. Thank you, senator nelson. I would say here here to that last statement and hopefully with this committee will be able to get there in due time. We are have a couple of her colleagues and would like to welcome to the Commerce Committee today and they are here to introduce a couple of our nominees. I first want to recognize the president pro tem of the United States senate, senator hatch and he is here to introduce joseph simon. Senator hatch, you are recognized. Thank you so much, mr. Chairman. I want to thank you for the opportunity to appear. It is my distinct pleasure to introduced joe simons. His nominee for chairman of the federal trade commission. Weve all been eagerly waiting for this hearing because we all know its a high time to get things up and running again at the ftc. Though now over 100 years old its Mission Remains critical today as it was when first established in the United States as the economic marvel of the world and our market system in which entrepreneurs are free to build and consumers are free to choose as proven in engine of prosperity without equal. I need not remind members of this committee excuse me, Free Enterprise economy will reach its full potential only so long as institutions like the ftc keep our markets free, fair and competitive. Striking the balance has always been exceedingly difficult, no less now than in the past. For all the prosperity of our system and all the prosperity our system has delivered for all its promise to deliver still today there is a palpable anxiety about our economy and its trajectory. Concerns are being raised about corporate consolidation and the conduct of some of our biggest firms in questions of data privacy and security loom large and thus the next two years will prove a critical time in history of the tc and the concerns are real and the policy places are difficult and the pressure is brought to bear are likely to be heavy. Ultimately chairman soon, that is why i am so pleased to be here to make this introduction and let me say this and let me be clear joe simons is just the man this moment requires. The president could not have made a better choice for this crucial. I have to say that he is of course superbly qualified to lead the commissions chairman and he was educated at cornell and georgetown law and served and several important posts that the ftc including director of the bureau of competition and was both partner and leader of the antitrust group at the law for hundred law firm. Formerly then his resume he is uniquely suited both by temperament and character to take up this chart. In his tenure in merger and conduct cases he earned a reputation for skill, integrity and bigger. His enforcement decisions both went to proceed and do not reflect a doctoral expertise and a sense for economics and practical field for the markets. Indeed, the methods he developed have been adopted and used by administrations of both parties and judges of all philosophical approaches. Once in private practice he was called upon by both private clients and Public Institutions and handled the most difficult problems in the most important and sensitive matters as the f tc chart discourse in the modern era he experienced in statute will make him just the steady hand that the markets, the bar and consumers expect. Is the ftc has more than just its chairman. For the committee is an excellent slate. Christine wilson is a recognized leader in law and i have Great Respect for her and [inaudible] and Noah Phillips is a part of our family here in the senate. Consistently over the years he has proven a reliable senator to the court [inaudible] i know he will make them exceptional commissioner for a vision, mr. Chairman, i commend the president on such an expanding nominees and i applaud this committee for its expedition and moving them forward. Let there be no mistake this is an excellent package and deserves bipartisan support. Led by joe simons can trust the ftc with faithfully will faithfully fulfill its mandate in continuous tradition and bipartisan practical enforcement of policymaking to tackle the challenges ahead. Thank you, mr. Chairman, for this opportunity to say these words. Thank you, senator hatch. Mike, along with senator cornyn and a few other on this panel as well and we are also joined by other distinguished member of the leader ship with senator cornyn from texas and he is here to introduce Noah Phillips. Senator cornyn. Thank you, mr. Chairman. Thanks to Ranking Member but with all and members of the committee. Im honored to be here and as you have heard to introduce and actually well qualified candidate, Noah Phillips to be federal trade commission or. You have already said, mr. Chairman and others have acknowledged that he served as my chief counsel which is to his great credit having knows i need all the help i can get. Noah has helped guide me and my legislative portfolio through complex issues on the Judiciary Committee during his tenure. His intellect shines most when he is faced with technical topics that would intimidate even the most seasoned lawyers. Intellectual property, privacy issues, antitrust in constitutional law. He is also showed as senator hatch has noted an knack for building consensus with focus on other side of the aisle when necessary to get things done. Found his way back to texas and onto my staff. His legal resume is remarkable with the work is done with a Judiciary Committee behind the scenes on important victims rights laws like the holocaust and legislation reform. Beyond the hearing room with the quick wit as confirmation of bipartisan credentials his wife worked for usaid United Security council during the Obama Administration a devoted father to three children that you have already heard some from this morning. [laughter] and perhaps more as the hearing continues. As the commissioner has experienced to the antitrust law to better protect consumers capitol hill staff may come and go to be held by my office and the entire senate Judiciary Committee. The commission is better off to her on his tenure and thank you for your consideration of his deserving and wellqualified nominee. Thank you senator for the colleagues willingness on behalf of the nominees thank you for being here. I will recognize a member of this committee to introduce one of the others as well. [inaudible conversations] i will recognize senator cap window to introduce ms. Wilson. To thank all the nominees in particular president traveled far nominating ms. Wilson as the nominees nominee for ftc commissioner she works in washington d. C. And lives in Falls Church Virginia purchasing farmland in West Virginia having relatives working in the region of the 17 and 1800s so it will be a homecoming for them and they will be welcomed home. Aside from my newest constituents to highlight her work with women and Human Trafficking including including recently purchased farmland in West Virginia it is our hope to open three locations for those victims of trafficking and abuse and i look forward to hoping that comes true because that is an issue they care deeply about on the professional front for over 20 years and advocate of a simple truth of the heart of america that competition is the best protection for consumers and the strongest prescription for a healthy economy. The consumers benefit most from robust competition and the chief of staff under george w. Bush. And confidence that market economies increase Consumer Choices to reduce prices has grounded from any contributions of competition law and policy domestically and internationally. If confirmed i know she will bring to bear the extensive experience she has gained from both private practice and the Public Sector so thank you for your commitment to our country and public service. So now we will proceed with mr. Simons and if we can ask the panel to confine their oral remarks as close to five minutes as possible the entire statement is part of the record so please proceed. Chairman soon and Ranking Member blumenthal and the distinguished members of the committee, thank you for this opportunity and senator hatch for those kind words i will do my best to live up to them. It is truly an honor to appear before you especially regarding this nomination. The ftc is an institution that is very close to my heart. The ftc has a Great Mission dealing with fascinating and important issues. As i mentioned to a few of you come in some ways it feels like i spent my entire professional life preparing for this opportunity is a much younger lawyer in the 80s working at the agency as an assistant and a little over a decade later i returned to run the bureau at the ftc and while in private practice i have for many years represented clients before the ftc and antitrust division with the department of justice and throughout that time i never gave much thought to the possibility i could be before here as a nominee to lead the commission but personally i cannot imagine a greater professional honor. None of this would have been possible without the support of friends and family. First and foremost i definitely would not be here today without the love and support of my wife martha and also here with me today are my children jack, sam and his wife and my stepchildren and my brotherinlaw and his wife and several Close Friends and my cousin jeff. My daughter is watching from cornell and i cannot think all of them enough for their suppor support. The ftc is a respected institution in washington since its creation a little over 100 years years ago its work has proven critical to increase the growth of the economy. By vigorously policing anti competitive conduct and preventing any consolidation the commission can help ensure they compete on the merits for a better product for services at lower prices. Likewise by stamping out unfair trade trade practices to ensure that consumers are protected with the information they need to make those choices in the marketplace. So the ftc is all about protecting and improving consumer welfare and has already been discussed one of the great things about the ftc mission historically is that it has been performed in a highly bipartisan way. My pledge to you today that if honored with the confirmation i will continue to lead the ftc in the rich tradition of bipartisan policymaking and enforcement and i look forward to working alongside my fellow commissioners of both parties to ensure the ftc remains an effective on the second century after the end of its first. Thank you for this opportunity to testify and i look forward to your questions. Ranking member, senator capito and distinguish members of the committee i am deeply honored to have been nominated by President Trump to serve as a commissioner of the ftc. Thank you for the time you and your staff have spent over the last couple weeks and inviting us here today and also for your words of confidence i appreciate it. I am joined with my husband and my daughters my niece and my inlaws as well as a number of very Close Friends i would echo without their love and support i would not be here today. If confirmed serving as commissioner would be my third job at the ftc first i was there while in law school as a law clerk in the bureau of competition. I returned to chief of staff under president george w. Bush. This help me to understand the pride of the ftc personnel take in their mission and with fewer than 1200 employees, routinely tackled issues of daily importance to americans of every walk of life but the finite resources to maximum advantage to promote the interest of consumers by ensuring the effective operation of markets in a bipartisan way but the agency must be careful to wield power appropriately and to use the sports analogy the ftc must avoid treating as a referee in the market. Entering the second century it has much important work ahead of it to project to consumers including preserving competition and healthcare markets and to stay abreast of technological advances in tailoring the ftc advocacy and to promote the sound Economic Analysis of competition and Consumer Protection issues domestically and abroad. Each of us if confirmed will bring his or her experiences to the role of the commissioner and the most notable experience occurred 1984 Ronald Reagan was our president and i took a three week trip behind the iron curtain to see firsthand the long lines the empty shells and misery inflicted by the authoritarian government with command and control economy i finish that trip as an advocate for personal liberty and market economy and yes my older daughter is named after president reagan. That trip to Eastern Europe in the soviet union was the series of events that led me here today. Others are attributable that the university of florida professor who taught my first antitrust law and economics class sharing the possibility of a career in the field. My professor the antitrust economist while working at a Research Assistant writing the former doj assistant attorney general for whom i worked and is here with us today. Serving as chief of staff that is my understanding of antitrust of law and policy and im deeply indebted to them. Thank you for considering the nomination i look forward to answering your questions. Next up mr. Phillips the ftc game and their loss. Chairman and Ranking Member and members of the committee thank you for holding this hearing and for the opportunity to testify before you today. This is a critical time for the ftc with your stewardship of that agency. Also thinking the president for the honor he has bestowed and the confidence he has placed in me i am deeply humbled and also senator cornyn it has been the honor of my life over the last six years working for him with a kit one committees commissioner will reintroduce my family and i thank you in advance for your patience. With some of them first my father a law professor at Northeastern University in boston. I did not go there but he taught me everything. What is perhaps more important i was ten years old when my mother got cancer and my father raised me and my two sisters. I know that my mother is here with us today in spirit. My younger sister is here. She and her family live in cambridge and she works as an attorney to them proving patient care and my older sister cannot be here as a clinical psychologist at Harvard Medical School and has three great kids of her own i am thrilled to have her husband with me here today. Here with me are my three children i can go on about them but i will say that learning the game of monopoly they share interest of airplanes and trains and finally my wife is here a committed servant with the staff of the National Security council. Her work in government and out it is no exaggeration to say sarah is personally responsible for saving tens of thousands of lives i am in all as well as a month. Happy valentines day. Members of the committee the ftc is an Important Institution at a critical time for the National Economy congress has passed the commission with Consumer Protection laws and antitrust laws which in turn help consumers by protecting competition a free market is the most powerful engine the social progress of Human History but it works better with cops to enforce them and the ftc is one of those cops the Mission Statement reads protecting consumers by preventing anti competitive deceptive unfair Business Practices to enhance Consumer Choice and public understanding and to accomplish this without undue burdening legitimate Business Activity i believe in that mission not only protecting consumers but to instill confidence in markets to foster innovation and create jobs and that is no small task first they must execute the authority to protect consumers and competition and second the ftc must maintain predictability and rigor with sound rules on which consumers and businesses both can rely. Third, the ftc must keep abreast of developments of technology and developments and do all this as americans hear more about antitrust, high healthcare costs, sharing data in different ways. Im here before you if confirmed i want to help lead at this critical time. Over my career dealing with issues from other perspectives as mergers and acquisitions analyst, lawyers with antitrust and merger review and for the bulk of my career here in the United States senate and that last perspective is key, legislation is hard and requires understanding listening to abroad away reyes stakeholders to find common bipartisan ground working hard with democrats and republicans if confirmed i will continue that. Here in the senate a personal appreciation for separation of powers including congress. I know what goes into the words written and i will take care faithfully to execute them thanks to the members of the committee other forward to your questions. Thank you chairman and members of the committee i appreciate the opportunity to be here today and it is an honor to be nominated by the president to the ftc and agency with one of the most respected staff in the world. I am grateful to my family and friends and teachers and colleagues for their support. Some of whom are here today. This is my fifth time testifying at hearings before the United States senate and i believe in the fundamental importance of congressional oversight, federal agencies to ensure they are working for the greater good and using Public Resources efficiently. I am committed to being responsive and accountable to this committee and chamber. The ftc is more than a century old but many traditions should remain timeless. The agency has a longstanding history of commissioners working on a bipartisan basis to protect consumers and competition by fairly enforcing the law it has been a privilege for me to get to know all nominees. Lawenforcement proceedings should not be the only tool in the toolbox. Research of consumer and Business Education in cooperation with other agencies can be powerful tools. I am eager to continue these traditions with my fellow commissioners for the benefit of consumers and businesses alike. The ftc faces significant challenges in todays day and age the massive data breach at equifax highlight the serious issues we face with acuity and proliferation of consumer data in our economy and society and consumers including Senior Citizens and military families continue to be targeted by scammers and record high equity market valuations with the outlook for Global Growth and the yield curve suggests sizable m a activity will occur in 2018 and perhaps beyond. At the same time, Small Business starts are hovering near a 40 year low and all trends will require careful attention of the commission. In the private sector i have seen how both large and Small Enterprises serve consumers while responding to the demand and pressures of that competitive environment of capital and labor and other markets in my Previous Service i was proud to contribute to a benefited both consumers and honest businesses shutting down scams securing hundreds of millions of dollars of refunds for borrowers harmed by illegal practices to promote greater competition with the student loan refinance market. If conformed i look forward to working cooperatively with my fellow commissioners the staff and committee and public at large to advance the agencys mission to protect consumers with openness and transparency and humility. I look forward to your question questions. Lets start by asking the basic questions of all for i know each of you appreciate the importance of cooperation between ftc and congress but this gives us an opportunity to underscore that point. If confirmed will you pledge to work collaboratively to have those response for information . I would be thrilled to. Absolutely. Absolutely. Absolutely. I will direct this question to all four nominees if you could summarize your views but with the growth of surge of social media i like to get your response regarding the state of competition in the American Technology sector some say it should be antitrust scrutiny with a more nuanced analysis. So fairly quickly describe your views of antitrust such as facebook and google. At a high level dig is not necessarily bad but i also believe it isnt good. Sometimes big is good sometimes big is bad and both at the same time. Often Times Companies get big because they are successful with the consumer offering a good one dash good with the consumer with a low price but on the other hand those that were already big and influential can sometimes use inappropriate or anti competitive means to get big or stay big and if that is the case, we should be vigorously enforcing antitrust laws to prohibit that. That is my overall approach. I know there have been questions the antitrust laws are sufficient and i would like to affirm my view today that in fact the antitrust law is written today is broad and flexible and are capable of adapting to technology so i have no concerns at this time of our ability to address the issues that may arise under current jurisdiction. Obviously if we find there are any gaps we could come back to you to open a dialogue about that. But whether there are issues i understand there are investigation into companies in the past with time and technology that has evolved submit might be good to take another look over concerns and i am interested in hearing concerns or complaints people may have about various companies but i would tell you there is no company above the law and i would support if confirmed chairman simons to look at the potentially unlawful conduct. Thank you for the question in the sense that it is a question like many americans, i experience daily the incredible impact that many have an ac the impact of the lives on the others even my little children. The ftc has a big role to play to apply the law fairly and carefully and importantly to stay abreast of trends mom trends to see how both Consumer Protection and antitrust. I dont know all the answers but the two commitments are first if confirmed i will help keep the agency abreast of development and second from their own violations no matter whose committee that the ftc enforces the law. I just want to offer a few observations like most sectors of the economy Large Technology firms dont just compete with each other but with several other sectors of the economy and Healthcare Companies and retail and so many other major sectors. This has been a real challenge for equity and debt analyst to predict how profitability and Market Dynamics will occur. That implores us and to engage in constant learning. I agree that there is a real goal to continue to look back at past actions to determine whether models or empirical analysis can be evolved but it is an area to be humbled and to continue to learn to effectively understand dynamics in this marketplace. In the report of the state of antitrust enforcement it makes a number of recommendations for the handling of antitrust Consumer Protection issues recommending all protection orders showed sunset five years after those extenuating circumstances do you agree with the recommendation do you seek to implement this reform . The antitrust section does a terrific job with a whole host of extremely thoughtful people so anytime they make a recommendation think about that seriously. I dont have a conclusive view yet but before you can see before reaching any conclusions i would like to talk to my fellow commissioners. The report had a number of recommendations that was already sought to implement and that appears to be well received. With respect to model order about revisiting some of those with respect to consent decrees, looking whether those ranks is appropriate in all rural agencies but it is worth visiting if they could be changed or not. I like to vote before making any final comments welcome to all of you and for your service. And as a member of the Senate Family and your work on the senate Judiciary Committee i assume your request for your father the law professor was not for your children. I have long since learned to ask patients for my father but not what i cannot give. [laughter] and he isnt teaching anyone monopoly so let me begin by saying the ftc beginning a new era with a storied and wonderful past but the fact is consumers and competition has never been more threatened as the means to deliver content and making it and the products become more complex and so do those challenges of protecting competition and consumers from what can be used on the internet rather than snail mail or other forms of contact and working the chains of delivery. I think the ftc needs to enter the era with new energy and new tools why i have introduced laws to protect against that we have talked about the need for better protection so my hope is that you and the other commissioners will support the legislation that i have introduced i dont know if you have had a chance to consider further the data breach act of 2017 but i hope you could support it or if you have anymore opinions on that. Thank you for the question one of the things im extremely concerned about is whether the ftc has sufficient authority to deal with breaches in particular in terms to create a sufficient deterrent or incentive to the companies that take care of the consumer data as they should. Right now we dont have Civil Penalty Authority and we should consider very carefully with a close look so i am sympathetic to your bill and i look forward to working with you on it. To be other nominees agree . Yes i would. Yes, if i could add data breaches impose a great deal of cost also for small enterprise that a quick fax data breach from equifax from Credit Unions and Financial Institutions we need to think about the whole picture including harms to consumers. It is very serious where the ftc needs reinvention that is one of them and another that seems to me is drug pricing and drug shortages every member of this body i think making drug prices more affordable but yet every other day seemingly there are reports a drug or a device being marked up 300 . Im cosponsor of legislation to improve access that directs the department of hhs to create a task force it is only a beginning with the enforcement of antitrust laws against consolidation as well as others. And with all due respect in the Airline Industry if we have time for a second round i will be asking you about the industry but now for drug pricing we need more vigorous enforcement in this area. Sen. , i am very concerned as you just described. I think the farmer farm industry is critical for the economy and the consumers. It affects people in a vulnerable point in their life. So i am very interested in dealing with that and last we spoke when we met i would like to explore putting together a drug pricing Monitoring Task force so we can see in real time as close as possible with drug pricing and act as quickly as possible to identify when high pricing is caused by anti competitive conduct and to engage in Enforcement Actions quickly if the price spikes with the fda and Something Else then maybe legislation would be appropriate and we would talk to you about it. Would you consider supporting the measure i mentioned. I would certainly consider i it. To any other of the nominees have used views . The commission needs to anchor its work to where it can focus on consumers and activity in the economy and given that so many patients are how much they spend on Prescription Drugs in healthcare it has to be a top priority to enforce those applicable laws. Thanks for your willingness to serve and to your families for supporting you in this endeavor. Talking about the Credit Bureaus in credit reporting agency, the ftc has some analysis that indicates with a high error rate and is called so that means that millions of american cannot cannot have a Customer Relationship not in their possession. Although the Credit Bureau calls us their customers but they are actually those who evaluate the credit worthiness are not in position of the data sorted, aggregated and sold by these companies and the ftc has done some good work here just as congress has done some good work but these Credit Bureaus operate almost entirely in the dark and it has real impact not just a consumer issue but also question of the ecosystem itself and i will preface my question with the following i do not want to blow up this ecosystem. We need a way to evaluate the creditworthiness we dont want to go back to the days when you had to walk in and present yourself to a banker would evaluate on the basis of hunch or if they knew you personally. I understand them but does the ftc have you authority to do more . Are you inclined to explore those possibilities . The mecca share your concerns that is something i would look forward to talking to the staff and we would be happy to work with you. I also share your concerns, senator. The ftc does have enforcement responsibility for a number of flaws right before at least of them were found to have violated this allowing consumers to easily call it and then change it necessary to would be interested in talking where Additional Authority would be used and look forward to continuing the dialogue. As we discussed yesterday for a lot of americans that they cannot even access and the errors of which can result in bad outcomes for all those people affecting millions of americans. If confirmed i look forward to getting briefed on what the agency is doing work can be doing working with you and your staff on that issue. This is an industry you cannot vote with your feet. When consumers cannot take their business elsewhere Competitive Dynamics cannot address certain consumer harms and just in 2017 to see a number of serious issues come to light to have the court find a Credit Bureau was falsely marking people as terrorist or drug kingpin we have to get to the so that is working better. We need use the fair credit reporting act and the commission needs to ramp up. My final question, i have spoke to all of you but this idea of some of it is getting more robust and sophisticated. I am interested in the space because it is unclear who has jurisdiction it could be the ftc with these predicted algorithms to essentially serve as a proxy for race or geographic location or income and to the degree and extent they are sold as a product to a government or company, it is difficult to determine what laws are violated. Can you take a look at this . I will take this on the record. We passed the fair credit reporting act to make sure there were not secret databases making decisions without consumers having access and increasingly outside of the credit reporting sector the industry of data brokers and other sectors are using more data the ftc did publish a big date of report highlighting that by look forward to working with you and others to figure out the industry dynamics and potential for consumers. Thank you very much chairman i like to direct a couple of comments and questions to mr. Simons initially. How will you prioritize the significant number of issues pending. Thank you for the question but the First Priority for the commission will be to make sure we have vigorous enforcement but that would be the focus of our attention where so now what are your views of the current budget and how do you ensure the commission has the resources necessary to protect consumers . I pledge i will look carefully at the ftc budget if confirmed and make sure we have what we need to do the job and if we dont i will come to you, i will not come but i will ask for more money. As we discussed in our meeting, if i am concerned about the federal agencies those that public again the way they can elevate . One of the things i will do if confirmed when i first get to the ftc is to talk to the cio and those folks dealing with those issues. This is a big concern for me and important i want to address it quickly. I have a long history working with the ftc on false laboring and Sports Equipment targeted to your phone and however it is important the ftc continue with that labeling will you continue to help and you see enforcement for any manufacturer repeatedly making false claims. I am happy to make that commitment this issue is near and dear in my heart my son had a serious concussion while playing football in high school and i saw the effects it is very important to me. The next question is addressed to all nominees as consumers are purchasing more items connected to the internet but they may not understand the enormous amount of data that is collected. They can include childrens toy toys, monitoring devices and can we talk about the actions the ftc can help educate tumors about Data Collection practices . Would your ideas how to promote Consumer Protection in the online connected world . Consumers education and engagement and particularly to underscore that collection of the children and Service Members another pockets of the populations probably warrant more specific attention of Course Congress already has certain protections in place that address childrens privacy of students and i think we should figure out how we can increase understanding by consumers. I largely agree and i think the focus on Consumer Education cannot be more important there is a lot the ftc can do about outreach to the Consumer Community and the Business Community to those affected groups like the military and the elderly and i think that is essential. Also using members of congress to get the word out. Let me interrupt you because my time is gone but i want to make a plug and senator blumenthal with the working with the state attorneys general both of us were sometime in our career and it just seems to me that you can amplify consumer efforts by doing that the state attorneys general have their ear to the ground hearing directly from consumers many are in many states have strong Consumer Protection laws and the atty. Gen. s are out there doing that. The good working relationship with the state attorneys general will amplify the work that you do so with that i am finished im sorry for running over. Good morning to all nominees and congratulations on your nomination and all family members who are here thank you for supporting your loved ones it is a Family Affair we are very grateful especially the children who are sharing their parents with the american people. I want to start with the question given the finance background i want to ask about student loan scams that providers that remain a serious prep one problem a exploit vulnerable young people by charging outrageously high and illegal up front to monthly charges. He began a crackdown last fall but it is clear or needs to be done at the federal level that these predatory companies cannot operate anywhere and harm consumers in the United States what more can they do to end predatory lending behavior . This is an uncanny resemblance to the foreclosure crisis as mortgages went bad, foreclosure relief firms many were fraudulent preyed on so many communities hit hard by foreclosures. There is a student loan default once every 28 seconds, 3 million per day and 1 million per year and i know there has been some criticism of the ftc to be late to this but i think the staff has done a terrific job on the Student Debt Relief work and we need to amplify that with the attorneys general and others to make sure we are not allowing a repeat of what we saw of the aftermath of the foreclosure crisis. This is a question for the panel with limited time. In the past the ftc looks at video games of the violent video games and also study the esrb findings of one of the most effective voluntary boards that is why im confident they can take this issue seriously so im sending a letter to outline my concerns with micro transaction to allow the in game purchases for surprise winnings marketed to and used by children obviously they are susceptible to being addicted. Last month the who recognized gaming disorder as diagnosable. We should protect our children and inform parents about their options with these claims so the questions are do you agree children addicted to gaming like activities that could make them more susceptible to addiction and pending on how they respond how that is an issue. I agree about counts. As a mother of two teenagers i would agree to the extent they play video games is a concern i would be willing to talk to staff on this issue should i be confirmed. Yes senator while i am not yet an expert of credible reason to believe i would be forced to be and i look forward to working with career staff on that issue. So why dont i decide to submit that in writing and i yield back. Welcome to the panel and congratulations on your nomination me and my colleagues have talked about the breach so given the equifax in those five weeks it took to notify the public do you think we should have a mandatory order or a risk guideline . And to talk to the ftc staff and other members of the committee. I dont have a basis to reach a conclusion at this point. So sometimes you want to make sure that you can fix it before you have to announce it so depending on the facts of the case with that breach notification is more appropriate sooner rather than later but in terms of the notification that is something i am interested in. I want to be careful not to prejudice any existing investigation but i do think that data breach at equifax was a wakeup call over the patchwork of the state laws and the appropriateness how consumers are informed and impacted so i am interested to work with all of you on data breach and Data Security issues it is only more frequent and to impact on so many facets of our life including National Securit security. Is five weeks too long . I dont want to prejudice any Ongoing Investigation but as a general matter several weeks after a major breach of personal data does not sound like it is fast enough. Like my colleagues i understand that it has been investigated and dont want to speak specifically but obviously that is a major issue and look forward to working with my colleagues on what is appropriate. I agree this is a significant issue and we recognize that the ftc will spend a great deal of time and energy investigating these issues to figure out how to better serve the American Consumer so i joined my colleagues to say i dont want to prejudice the Ongoing Investigation but to receive a briefing if confirmed and talking with you further about Additional Authority or legislation required. The facts are well known i am pretty sure this committee had a hearing so we are familiar with the fact there was a fix available but yet not applied in the first 5 million peoples personal data was impacted so what we want to understand are your personal views on how important it is the ftc place to fill the gap as the members are not thinking aggressively about this issue and the role to play on privacy then that is a grave concern to me and my constituents. I do have questions about your current anti Manipulation Authority relating to energy and the oil markets but my time is up. Thanks to all of you for your willingness to serve. To piggyback on the question of Prescription Drug pricing we have seen a lot of consolidation in this industry as an example the pdm industry were Large Companies dominate the market many all proprietary pharmacies or mailorder which compete with local retail pharmacies. Often on the uneven playing field. Being in the state with a lot of seniors it is important so how do you expect to deal with this . I agree wholeheartedly with that concern. One of the things i want to do with the commission is put in more detail the retrospective program so that we look more critically at whether the merger enforcement is as effective as it should be and if its not then why and how we can fix that so as part of that it might make sense to look at the industry that will help us determine the problem. Thank you for your question. I dont need to tell you that the price of healthcare for americans is their number one issue. The ftc has a proud decades long bipartisan track record of working on to keep competition going from the mergers of hospitals to policing Prescription Drug prices and if confirmed i will make that issue a priority. This is where anticipate spending a great deal of time and effort. I want to jump to another topic. Her time is short. We talked about this in office with mr. Simons, telemarketing, the new spoofing set well see come across our phones, also robo calls and telemarketing has taken on a different form than the original do not call registry list that we saw develop successfully. Several of you mentioned about the need of technology and the experts to keep ahead of the next algorithms being developed to get around the role and reach the consumer. He had a good answer for me in my office can put that on the record. The commission launched the do not call initiative. Whos here today he would say that was his 15 minutes of fame. Fortunately technology has outpaced that effort. There are holes that need to be plugged we know robo calls are a form of harassment. There unlawful under a variety of statutes we need to find a technological solution and significant enforcement in that area. I look forward to working with my colleagues in the to make sure we have a solution to that. Going back to seniors i think this impacts the ability for fraud for them and then we see it happening all the time. Do you have her response. I think we need to also look at robo calls and telemarketing issues, not as an inconvenience but as a real harm to many people. Many do not have the luxury of screaming their calls. The might be waiting for doctors call and i think its something we need to remember. It is not simply an annoyance. Thinks each of you for being willing to serve some of you might be familiar with the proposal known as the smarter act, this is a piece of legislation that would ensure the department of justice antitrust officials in trade Commission Officials would have to meet the same standard in seeking a preliminary injunction to block a proposed merger. It also require the ftc to litigate these cases in federal court instead of relying on administrative processes to which they have access. Has some points ive discussed these proposals with individuals they will say dont see the need for legislation like that and i dont like it. We dont need it to be that way anyway. I guess i have a couple of questions related to this. Like each of you to tell me if theres any good reason to have a different standard applicable to the ftc that applies to the department of justice when either entity is trying to block a merger. Second, if youd other authorize the filing of an administrative complaint without seeking an injunction in federal court. I agree, similar standards Market Participants should not have to navigate multiple standards whenever possible. I want to explore more with you and others. One question with respect to speed of the overall proceeding they can sometimes be faster and cheaper for parties. The be something to look into. As a general matter i take your point that this might be best suited for federal court. Thank you. Its been great to work with your staff. My answer is that i cannot think of any reason whatsoever. The law should not operate as to which federal agency will appear in front of a company should not have to consider that question when trying to figure out how to pursue that activity. Personally, i need to learn more about the operation of part three and of confirmed i look forward to working with my colleague and career staff on that question. Thank you. This is a very important issue in an issue of Good Government that they have clarity and predictability when they approach the government particularly with concurrent jurisdiction. I dont believe there is a good reason for differentiated standards. There are people will tell you the standards, the same way, but convenient to businesses there is the same standard has great value. In terms of where complaints are brought, as a general rule i think this would be my inclination. I think there should be extenuating circumstances to be considered. Think it could be a right way to go in court. I dont see any reason whys theres two standards. I agree the same standard is applied. I dont know why it shouldnt be cleaned up. In terms of where they filed the merger challenges, generally it should be in the federal court one bite at the apple, it should occur in the federal court and if the agency loses their it should be going to administrative child. I appreciate your answer. In any case, whether antitrust law or otherwise, or relevant here since not about a hypothetical but realworld situations, someones feet are not be determined by the toss of a coin. The type of random decision that might dictate a propose merger be reviewed by this agency or the other only have differing standards that apply, what is required to go before federal court and another has another option. That makes no sense. No one has ever explained to me in an adequate reason to have two different systems. The fact that something might be more efficient for the government ought not change someones access to due process which is what the system is about. My time is expired. Thank you. I have to depart for meeting on infrastructure, i will say that we hope to move very quickly your nominations to the floor. Its important we get those seats filled. Thank you for your willingness to serve. And for your families and their willingness to serve and sacrifice. We know how these are very much family efforts. Thank you. We now move to an eight minute rule. And you enjoy yourself and your other meeting. Let me drill down on a specific issue. Thank you for meeting with me in my office. I got a good feeling that we will be able to Work Together in a bipartisan manner. Let me ask about the contact lens rule. Where are we on that . The optometrist have always followed a role that you write the prescription and theyre willing to fill it themselves. But always give it to the patient or consumer and its up to the consumer to decide where to get that prescription filled. Now theres a new rule which some of the providers think is a solution in search of a problem. The patient must assign that they got the prescription putting the provider in a position of being a Record Keeper for several years. Where are we on that . Without asking you to say how you would rule on, what is your general feeling about taking into consideration the fact that we already have a rule working well and this would give an Administrative Burden on people who are just trying to provide. Thank you. The role revision is under consideration at the commission. I believe it has scheduled in march another session to collect more information that will help in the decisionmaking process. I dont want to prejudge the result of that. I would have to say if it isnt broke dont fix it if those are the facts. Anybody else want to comment . I would agree. I think we need to be very attentive to imposing requirements and burdens on our smallest entities, especially if they dont have the economies of scale. As we discussed i will a probe on some of those assumptions and hope to make sure we get a good solution here. You mentioned and i was tickled to hear that we would protect consumers including preserving competition in healthcare markets. If we can make some progress in this committee on that issue, we would be doing a lot to help the american public. In particular, i hear concerns about the pbm transparency. Its a pharmacy benefit managers and other public doesnt understand it but its a source of frustration to many given the negotiation leverage they have, what role should transparency play to enhance competition . To go back to at the senator said, im a Firm Believer in free markets and robust competition. You need to have full, transparent information to achieve functioning markets. Without speaking with respect to that more information makes it function more efficiently. I would conserve with mr. Simon that of confirmed it will be important to do merger retrospectives to determine if we have achieve the right balance in terms of permitting mergers that allows mergers while blocking mergers the require remedies where they might otherwise cause harm to competitions. In a larger sense, there is a lot of frustration with the pharmacists that have to comply with these rules and having to do things retroactively to rectify problems they didnt know about. My time is up. Im glad to see at least three of you possibly all of you talk about bipartisanship and the great tradition we have of not lining up three to make to some of the issues as we have seen elsewhere. I me say that i heartily endorse that sentiment coming from a Bipartisan Panel today. I hope that tradition can continue. To provide examples for future boards and candidates to talk about in a positive manner in the future. Theres a request for a break of five minutes. Well break for five minutes. Pretty strict on time. Its 1107. We will start back at 11 12 p. M. Promptly. [inaudible] [inaudible] [inaudible] [inaudible] thank you all for that. It is 11 13 p. M. I now call and senator marquis. You are just as good a sister superior. Get that breakin perfectly. Neutrality