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Mobile device manufacturer HTC America has agreed to settle Federal Trade Commission charges that the company failed to take reasonable steps to secure the software it developed for its smartphones and tablet computers, introducing security flaws that placed sensitive information about millions of consumers at risk.

The settlement requires HTC America to develop and release software patches to fix vulnerabilities found in millions of HTC devices. In addition, the settlement requires HTC America to establish a comprehensive security program designed to address security risks during the development of HTC devices and to undergo independent security assessments every other year for the next 20 years. The settlement not only requires the establishment of a comprehensive security program, but also prohibits HTC America from making any false or misleading statements about the security and privacy of consumers’ data on HTC devices. HTC America and its network operator partners are also in the process of deploying the security patches required by the settlement to consumers’ devices. Many consumers have already received the required security updates. The FTC encourages consumers to apply the updates as soon as possible.

The New York Times Company and others have come forward in recent weeks to say that they were hacked. Although hacking is common, it’s rare for companies to talk about it — even though doing so could warn customers about compromised data, or alert other businesses to a particular threat. Should companies be required to disclose security breaches?

A man shuffles down the street, phone in hand. He appears to be reading a message, but in fact he’s hacking into city computer systems and peering into the pockets of passersby — flicking through their bank accounts, government records and personal details. This kind of nightmare scenario is the feature of a new video game called ‘Watch Dogs,’ one of a number of new video game titles that put the player in the role of the passing hacker. Hacking and cyber warfare are not new themes for video game makers. But new titles that center on constant data threats and government surveillance are resonating now because they hit a little too close to home.

Technological transitions do not change the values Congress codified in the Communications Act and the Federal Communications Commission remains committed to advancing a set of core principles rooted in those values:

1. Competition. Over the last two decades, we've moved from monopoly toward competition in many areas of the communications market, a hugely positive trend. Take voice service: Today, most consumers and businesses have several options to choose from, including their local phone company, a cable company, multiple wireless providers, and Internet providers like Vonage and Skype. These choices exist because of massive private investment, and because of policies that created and maintain the conditions necessary for competition to flourish, including rules to ensure interconnection; consumer roaming across mobile carriers; number portability; and Internet openness, so broadband providers can't block competing voice apps and services. Still, competition challenges remain. For example, for robust residential broadband with no or high monthly usage limits, most consumers today have only one or two choices. Some have suggested that an all-Internet Protocol communications market will necessarily be robustly competitive -- "Deregulate for a competitive, all-IP world!" would be the bumper sticker -- eliminating the need for FCC policies to foster and protect competition. But basic economics and the facts on the ground show that's simply not true. Technological change brings great benefits, but it doesn't automatically bring vibrant competition, particularly in high-fixed-cost, network-effects-driven market segments. At the same time, it's also not true that all legacy regulations remain appropriate for promoting competition in today's marketplace. We must take a nuanced, data-driven approach to determining which policies to keep, which to eliminate, and which to add or modify.
2. Universal service and consumer protection. The U.S. largely succeeded in connecting all Americans to the dominant communications platform of the 20th century -- the telephone network -- and used a number of policies to protect and empower telephone consumers. In the 21st century, universal service and consumer protection remain vital goals. But we will not meet these goals, no matter how fast technology transitions proceed, without modern policies like the 21st Century Communications and Video Accessibility Act of 2010, the Connect America Fund, and the Mobility Fund.
3. Public safety. Ongoing technology transitions promise to substantially improve public safety. For instance, 4G LTE and next generation 911 can enable first responders to access data, video, and images in ways that will help them save lives. At the same time, technology transitions present new risks. Last year's major natural disasters highlighted the fact that, unlike copper, fiber networks do not have an independent source of power, which means consumers and businesses can lose access to 911 and other vital services during an emergency. And IP networks bring with them significant cybersecurity threats. Policies and industry standards need to evolve to ensure that the resiliency of our networks is not diminished as a result of technology transitions.