FTC Moves Towards Do-It-Yourself Regulation Model

from the does-that-work? dept

The FTC is admitting that their job has become a lot more difficult lately with the growth of the internet and online advertisements. It’s a lot harder for the organization to keep up with what’s being done to trick consumers — so it sounds like they’re hoping the industry takes care of the scammers themselves. As has been seen with the CAN SPAM debacle, that may not be such a bad idea. However, there are times when businesses and self-regulation clearly aren’t enough. Witness the recent situation with Zango. Despite plenty of public humiliation and evidence of wrongdoing, the company made very few substantial changes to stop surreptitious installs of their adware. Eventually, the FTC had to step in and fine the company — though, even then, some are wondering how effective the fine will be. So is there a better answer? More government oversight tends to lead to waste and bureaucracy, but self-regulation alone doesn’t seem to be stopping scammers — and as those scammers get more and more effective can we rely on an FTC that just says that the industry will sort itself out?

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Comments on “FTC Moves Towards Do-It-Yourself Regulation Model”

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Say No to Crack (user link) says:

Complaint site?

There has to be some way the FTC could create a single internet fraud/scam complaint site. My thought is that consumers would login to this site and add their complaint (with the company name and website for which their complaining). When the # of complaints hit some predefined minimum, the FTC investigates.

Seems like this would greatly reduce the FTC’s workload without increasing government oversight. Win/Win for everyone.

Sanguine Dream says:

Re: Complaint site?

That sounds like a good idea. Problem is that the fraudulent sites that got investigated would just go to the governent crying that they are being persecuted. And if there are enough of them they just might get ballsy enough to try to file a some sort of lawsuit (and create a big mess like that Spamhaus I think it was called) since that seems to be the corporate creedo these days.

I didn’t mean to rain on your parade, it really does sound like a good base idea to start with though.

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