Tuesday, August 7, 2018
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State-Level Privacy Bills Stalled
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- Analysis: AT&T Not Out of the Legal Woods Yet | Wall Street Journal

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Privacy

After Congress repealed Federal Communications Commission rules that required internet service providers to get permission from customers before collecting their data and selling it to advertisers. ISPs Comcast and Verizon assured everyone that they had no intention of selling their customers’ internet histories. In the wake of that repeal, about half of the country’s states chose not to take the ISPs at their word, and began crafting their own legislation to restore the FCC’s rules within their borders. The National Conference of State Legislatures shows close to 70 bills on state dockets in 2018. So far, not a single one has passed. The reason, according to online-privacy experts, is the lobbying muscle of the telecom and internet industries. “Companies have a lot more resources to send in lobbyists to argue against these bills,” said Natasha Duarte, policy analyst at the Center for Democracy and Technology. “Especially when we're talking about state legislatures, things move really quickly.”

Tech companies are assessing their roles in protecting their users as officials in Washington debate whether the government should take a firmer hand in safeguarding Americans’ privacy. To that end, Facebook is offering responses from tech industry analysts and former government officials on “how best to spur innovation while protecting privacy.” The company sought insights on how to balance privacy and data portability — the ability to transfer personal data among different apps and services. Facebook recently announced a new collaborative effort with Google, Microsoft, and Twitter to develop recommendations and guidelines on that front. Multiple federal agencies are probing Facebook over the Cambridge Analytica scandal. And the appetite for answers from the company on its privacy practices remains high on Capitol Hill, with Facebook and other tech companies on the hook to appear for another high-profile congressional hearing in September. Meanwhile, the White House and Commerce Department continue to iron out principles for potential national privacy standards. Such factors have put pressure on Facebook to demonstrate it is taking tangible steps to avoid another data breach and show it can internally evaluate and address weaknesses in its privacy protocols.

Facebook has asked large US banks to share detailed financial information about their customers, including card transactions and checking account balances, as part of an effort to offer new services to users. The company asked JPMorgan Chase, Wells Fargo & Co., Citigroup, and US Bancorp to discuss potential offerings it could host for bank customers on Facebook Messenger. Facebook has talked about a feature that would show its users their checking-account balances. It has also pitched fraud alerts. Data privacy is a sticking point in the banks’ conversations with Facebook. (ya think?)

With too many students in too many places falling into the homework gap, we need to upgrade the E-Rate program by extending the school classroom to the school bus. This would ensure that school districts are reimbursed by the program when they add this technology to their transportation. To drive this change, proposals have been introduced in the Senate and House of Representatives. They deserve serious consideration. By turning ride time into connected time, we can make sure that every student, no matter who they are or where they live, has a fair shot at getting their homework done — and the opportunity for digital age success.

Prisons are notoriously low-tech places. But urged on by privately owned companies, like JPay, facilities across the country are adding e-messaging, a rudimentary form of email that remains disconnected from the larger web. Nearly half of all state prison systems now have some form of e-messaging: JPay’s services are available to prisoners in 20 states. On the surface, e-messaging seems like an easy and efficient way for families to keep in touch—a quicker 21st-century version of pen-and-paper mail. Companies like JPay cover the price of installing the systems; prisons pay nothing. And, the argument goes, closer family connections are a win-win for prisons and inmates. But e-messaging companies are quietly building a money-making machine virtually unhindered by competition—a monopoly that would be intolerable in the outside world. It’s based in a simple formula: Whatever it costs to send a message, prisoners and their loved ones will find a way to pay it. And, the more ways prisoners are cut off from communicating with their families, the better it is for business. Which means that stamp by stamp, companies like JPay—and the prisons that accept a commission with each message— are profiting from isolation of one of the most vulnerable groups in the country. And, with prisoners typically earning 20 cents to 95 cents an hour in jobs behind bars, the cost of keeping in touch most likely falls to family members and friends.

People who end up in jail in New York City will now be able to use the phones there for free, after Mayor Bill de Blasio signed a bill into law that will eliminate the charge. The city had been collecting about $5 million per year from calls made by incarcerated people and their families. The billion-dollar prison phone industry has drawn increased scrutiny in recent years, and the move by New York City is part of a nationwide push from prison-rights groups, public defenders, and the families of those who are incarcerated to limit private companies from profiting off incarceration. New York is the first major city in the nation to make phone calls free.

The Justice Department argued that US District Judge Richard Leon ignored “fundamental principles of economics and common sense” when he allowed AT&T to acquire Time Warner. The department’s appellate brief, filed with the US Court of Appeals for the District of Columbia Circuit, argued Judge Leon’s ruling was “clearly erroneous in light of the evidence presented at trial.” The government brief argued Judge Leon’s contrary conclusion came about because he “discarded the economics of bargaining” and failed to apply “the foundational principle” that corporations will aim to maximize their profits.

Because the stakes are so high, we need to look with extreme skepticism at proposals primarily designed to prop up the current consolidated and dysfunctional media landscape. If we want to address the very real problems created by a dysfunctional media, we need to separate which of these problems can properly be attributed to dominant platforms and which to structural problems in the traditional news industry. Additionally, legitimate fears of the ability of dominant platforms to act as gatekeepers, or concerns about their outsized influence on the economics of news production and dissemination, should not justify solutions that destroy the extremely important role these platforms have played – and continue to play – in civic engagement and enhancing the creation of new and independent outlets for news. We could start by honestly acknowledging the longstanding problems with the media and that the current crisis is not simply a result of the emergence of a handful of dominant online platforms or even changes in technology. What are the possible solutions to the underlying problems in journalism? How do we repair journalism? Equally important, how do we repair the public’s trust in journalism?
Government & Communications
Gov Cuomo Attacked NY’s Largest Cable Company. Its Channels Ignored the News.

It would have seemed to be the perfect made-for-local-TV moment: a reporter’s hard-nosed questions about potential corruption allegations eliciting an angry rebuke from Gov. Andrew Cuomo (D-NY). Full coverage to follow, right? But things quickly got complicated when Gov Cuomo veered sharply away from a question about hundreds of thousands of dollars from possible straw donors, and began to attack the parent company of the veteran reporter who had asked it, Zack Fink of NY1. “Speaking of fraud, Charter Spectrum has been executing fraud on the people of this state,” Gov Cuomo said. He attacked the company for not building out as much broadband in rural communities as it had promised, and for television ads it was running to promote its record. “You are defrauding the people of the state,” Gov Cuomo told Fink. “That’s a fraud.” But the confrontation — a classic of the local news genre — was nowhere to be found on the NY1. The governor had later called into the NY1 newsroom to explain himself — on the record. That too, never made it on television.
Government Performance
Chairman Pai Statement On Office Of Inspector General Report On FCC Comment System

For several months, my office has been aware of and cooperating with the Office of Inspector General’s independent investigation into the incident involving the FCC’s Electronic Comment Filing System (ECFS) that took place on May 7-8, 2017. The Inspector General’s office asked my office not to discuss this investigation while it was ongoing so as not to jeopardize it, and my office has accommodated that request.... I am deeply disappointed that the FCC’s former Chief Information Officer (CIO), who was hired by the prior Administration and is no longer with the Commission, provided inaccurate information about this incident to me, my office, Congress, and the American people. This is completely unacceptable. I’m also disappointed that some working under the former CIO apparently either disagreed with the information that he was presenting or had questions about it, yet didn’t feel comfortable communicating their concerns to me or my office. On the other hand, I’m pleased that this report debunks the conspiracy theory that my office or I had any knowledge that the information provided by the former CIO was inaccurate and was allowing that inaccurate information to be disseminated for political purposes....
First and foremost, this report highlights the need for the FCC to revamp ECFS. While our information technology staff worked hard to keep the system up and running in the weeks and months following this incident, it has become abundantly clear that ECFS needs to be updated. I’m therefore pleased that Congress last week approved a reprogramming request that provides us with the funding necessary to redesign ECFS. We’re looking forward to getting that important project started. Moreover, my office has made it clear that we welcome the participation in this effort of the IT experts in the Inspector General’s office who worked on this report....
[I]t has become clear that in addition to a flawed comment system, we inherited from the prior Administration a culture in which many members of the Commission’s career IT staff were hesitant to express disagreement with the Commission’s former CIO in front of FCC management...we will make it clear that those working on information technology at the Commission are encouraged to speak up if they believe that inaccurate information is being provided to the Commission’s leadership.
Statement of Commissioner Jessica Rosenworcel in Response to FCC's Inspector General Report Finding No Distributed Denial of Service Attack During Net Neutrality Proceeding

The Inspector General Report tells us what we knew all along: the FCC’s claim that it was the victim of a DDoS attack during the net neutrality proceeding is bogus. What happened instead is obvious—millions of Americans overwhelmed our online system because they wanted to tell us how important internet openness is to them and how distressed they were to see the FCC roll back their rights. It’s unfortunate that this agency’s energy and resources needed to be spent debunking this implausible claim.

The Chinese government certainly has the ability to pursue an online political disinformation campaign directed at foreign elections — but hasn’t yet because it favors long-term thinking over Russia’s scorched-earth foreign policy, experts said. Researchers note that China could turn its sights on the US if it wanted to. “The question for me and some other researchers is: will they make that jump more aggressively to the English language space in the more heavy-handed manipulation sense? Do they need to, if the Russians are doing that and they’ve got it well covered?” said Laura Rosenberger, the director of the Alliance for Securing Democracy, the German Marshall Fund of the United States. “Will they do it just in their immediate periphery in ways that are of more immediate concern to them, like Taiwan, like Hong Kong?”
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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