Before addressing the topic of protecting consumers in cyberspace and the issues of Internet taxation and regulation of online privacy, it might be helpful to share with you a couple of personal thoughts gained from my years of experience as a federal official. Given the tremendous benefits that typically flow from private markets, government intervention in these markets should be undertaken only when it is clearly necessary. And, unfortunately, it is also a new and fertile field for those who prey on consumers with scams, deceit and outright thievery.
Consumers have to be accountable and bear some level of responsibility for their actions.
Government can play a positive role by educating consumers and businesses and by appropriate and rational attempts to minimize deception, unfairness and misleading practices. The FTC's traditional law enforcement role against deceptive or unfair practices is an appropriate way for government to intervene. Contrary to its stated policy, Geocities permitted the information to be used for purposes such as target marketing by third parties. Accordingly, the Commission alleged that the company engaged in deceptive acts or practices in violation of Section 5 of the FTC Act. Since our first Internet case in 1994, the FTC has brought 93 federal law enforcement actions against 239 defendants.