PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Statement on House Passage of the CRA to Rein in FCC’s Duplicative Broadband Privacy Rule

By at 29 March, 2017, 7:46 am

For Immediate Release

Washington, D.C. – The Small Business & Entrepreneurship Council (SBE Council) praised U.S. House passage of S.J. Res. 34, which states that “Congress disapproves the rule submitted by the Federal Communications Commission relating to ‘Protecting the Privacy of Customers of Broadband and Other Telecommunications Services’…, and such rule shall have no force or effect.” The Senate has already passed S.J. Res. 34, and the resolution of disapproval now moves to the White House where President Donald Trump is expected to sign it.

SBE Council chief economist Raymond J. Keating stated:

“It’s critical that Congress rein in regulatory agencies that overstep their authority, which imposes unnecessary costs on small businesses, their employees and customers. In the case of the FCC’s privacy order that was issued last year, it was unnecessary and duplicative as the Federal Trade Commission’s (FTC’s) regulatory oversight in this area was actually working.

“The FCC, under its previous chairman, Tom Wheeler, went beyond its statutory authority in 2015 and imposed common carrier regulation on broadband service providers, and by doing so cut out the FTC from its regulatory role regarding online privacy for internet service providers. The FCC’s differing privacy requirements would increase both uncertainty and costs. Congress, by passing S.J. Res. 34, makes it clear that the FCC has overstepped its bounds and that the previous FTC framework worked well for ISPs, residential consumers, and small businesses as consumers and creators.

“The FTC has performed admirably as the regulator of online privacy over the past two decades, operating a framework that has allowed small businesses to move confidently to expand, invest, innovate, reach new markets, pursue opportunity and earn profits online. Reining in the FCC’s overreach is a sound move for consumers, innovation and our economy.”

Contact: Raymond J. Keating

631-909-1122 or 703-242-5840

Email: rkeating@sbecouncil.org

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has successfully implemented a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

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