June 19, 2003

Commerce Committee Approves Reauthorization of Federal Trade Commission

Smith Amendment Warns Consumers of Possible Privacy Incursions by Peer-to-Peer Networks

WASHINGTON, D.C.– The Senate Commerce Committee today passed legislation to reauthorize the Federal Trade Commission (FTC) to enhance the efficient operation of the FTC, eliminate acts or practices that are unfair or deceptive, and prevent anti-competitive conduct. The Federal Trade Commission Reauthorization Act of 2003 is sponsored by Senators John McCain (R-AZ) and Gordon Smith (R-OR).

"Our economy thrives when consumers have faith in the market and the products they are buying," said Smith. "The FTC plays a vital role in protecting consumers against fraud and ensuring fair play in the marketplace."

The Act includes a Smith amendment that instructs the FTC to educate consumers concerning the possible risks to their privacy and personal security, as well as the potentially illegal behavior inherent in peer-to-peer file sharing networks.

Last year, the FTC, as part of its consumer education program, created a website to inform consumers and businesses about computer security and safeguarding personal information online. The website, however, does not address the potential problems of peer-to-peer file sharing networks. Unsuspecting users of peer-to-peer networks may be sharing their private computer files, including health care, financial, and personal information. Another serious concern are the deceptive practices used to lure unsuspecting minors to pornographic websites.

"Americans need to be warned of deceptions and possible encroachments on their private records," said Smith. "The Internet is a wonderful tool with a wealth of information and educational resources. It should not be a minefield of lurid pornographic material aimed at stealing the innocence of our children."

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