October 2010

CBS isn't worried about the future of broadcast television because it believes in the promise of video-on-demand. That's the always lurking-in-the-background technology that won't allow viewers to fast-forward through possibly anything -- even commercials.

This approach isn't new. A couple of years ago, ABC had considered the possibility of working with cable operators to disable the fast-forwarding function on DVRs. That disabling function has always been available. The issue was whether to install it -- for fear of backlash from viewers.

Digital video consumers are already fully aware of what they get when they go to the likes of Hulu and other sites. You get commercials -- albeit, shorter messaging, fewer overall commercials -- prepping viewers for the possible moment in TV time, when TV viewing might revert to watching (or old-school avoiding) TV commercials. No doubt some entertainment technologists are already looking beyond VOD, as a way to get around not being able to fast-forward.

At a center for American progress event, Federal Communications Commission Chairman Julius Genachowski said, "Companies should compete on value, price, and service, not consumer confusion. "Cell phone bills have proven to be a fertile ground for 'mystery fees.'"

Anticipating potential pushback from some companies, Genachowski argued that his proposal is both pro-consumer and pro-business because more transparency will help highlight those companies offering the best products at the best prices. Center for American Progress Executive Vice President Sarah Rosen Wartell echoed this claim, saying it's a "good way to keep consumers happy, not an expensive regulatory mandate." The wireless phone industry's main trade group CTIA, however, took issue with such claims. "We are concerned that prescriptive and costly rules that limit the creative offerings and competitive nature of the industry may threaten to offset" positive trends in customer satisfaction, Chris Guttman-McCabe, CTIA's vice president of regulatory affairs, said. "We agree with the FCC that the goal is to keep all customers happy." Chairman Genachowski also mentioned consumer concern over early termination fees, which wireless firms impose on customers who break their wireless contracts early. The FCC has been examining the issue, but Genachowski did not say whether the commission would take any action to address concerns about ETFs.

The Federal Communications Commission (FCC) released an order clarifying the role of telecom companies in child porn situations. The ruling made it clearer that telecom companies must comply with mandates to report child porn in spite of their obligations to keep user data private. Child porn is a rare exception to the privacy rules in the Communications Act. Providers of electronic communication service or remote computing services are required to report child porn instances to a tipline.

A federal district court is expected to hear arguments in a lawsuit filed by Amazon against the North Carolina Department of Revenue, which has sought records of the state's residents who have bought items from the Internet retailer.

A federal district court in Seattle will hear arguments in a motion by North Carolina to dismiss Amazon's lawsuit, which was filed in April. Under current law, companies are not required to collect sales taxes from customers who live in states where the companies do not have a physical presence. Consumers who live in states with sales taxes, however, are generally obligated to pay them on items they bought from an out-of-state retailer. Given the growing budget problems facing numerous states, many states have sought to close this loophole or to try to collect the taxes they are owed from remote sales. According to Amazon, North Carolina sought the names and addresses of Amazon customers who live in North Carolina along with every item they bought and the price paid since 2003.