On Monday, the FCC and FTC published a Memorandum of Understanding in which the two agencies agreed to engage in greater coordination and collaboration on consumer protection issues, with greater respect for each agency’s jurisdiction. The MOU comes at a time when both agencies are seeking to position themselves as protectors of consumers in the digital economy.
In the MOU, the agencies agreed to coordinate with one another “to protect consumers from acts and practices that are deceptive, unfair, unjust and/or unreasonable” and, specifically, to:
- Coordinate on initiatives where one agency’s action will have a significant effect on the other agency’s authority or programs;
- Consult on investigations or actions that implicate the jurisdiction of the other agency;
- Meet regularly to review current marketplace practices, to share each agency’s work on consumer protection matters of common interest, and to exchange information about “the evolution of communications markets”;
- Share enforcement techniques, tools, intelligence, expertise, and best practices in response to reasonable requests for assistance;
- Collaborate on consumer and industry outreach and education efforts;
- Engage in joint enforcement actions, where appropriate, and coordinate public statements; and
- Share data regarding consumer complaints to the extent feasible, including through the FTC’s Consumer Sentinel Network.
The agencies also addressed the scope of the common carrier exemption, which exempts from the FTC’s jurisdiction common carriers subject to the Communications Act. Specifically, the FCC and FTC “expressed their belief” that the exemption does not extend to non-common carrier activities engaged in by common carriers, and that exercise of enforcement authority within one agency’s jurisdiction should not be taken to limit the authority of the other. While approaching jurisdictional issues more gingerly will certainly promote better relations between the agencies in the near term, ultimately, the scope of the “common carrier exemption” is an issue for the courts and Congress, and is unlikely to be solved soon.