Category Archives: Economy

Pulaski: Congress Must Reject Job-Killing TPP

by Steve Smith

ARTPulaskiTPPOn Monday, West Sacramento Mayor Christopher Cabaldon, representing a fake astroturf group  called the “Progressive Coalition for American Jobs,” penned a misleading op-ed in the Sacramento Bee in support of the job-killing Trans-Pacific Partnership (TPP). Cabaldon used a study from the Peterson Institute to help make his case that the TPP is good for jobs. Unfortunately for Cabaldon, he must not have actually read the study he cited because it actually says the flawed deal wouldn’t create any jobs AND it would lead to fewer good-paying manufacturing jobs.

Today, California Labor Federation Executive Secretary-Treasurer Art Pulaski set the record straight with his own op-ed in the Bee, pointing out the many harmful effects of the deal.

Like every other recent trade pact, the TPP is chock-full of goodies for corporate special interests while woefully inadequate on labor and environmental safeguards. The chief problem that plagued deals such as the North American Free Trade Agreement is that labor standards were weak or unenforceable, encouraging corporate CEOs to move their operations to countries that pay meager wages in comparison to U.S. wages. NAFTA led to 700,000 jobs shipped overseas.

The TPP is no different. In fact, the Peterson Institute report that Cabaldon cites finds that the trade deal wouldn’t be a job creator for America, but would lead to 121,000 fewer manufacturing jobs by 2030…That’s a major red flag for anyone concerned about the future of our middle class.

Another recent study by the Global Development and Environment Institute at Tufts University paints a much bleaker picture. It projects that the TPP will lead to GDP contraction in the U.S. and job losses and increased inequality in all participating countries. Experts say the deal could also undermine California’s efforts to combat climate change, result in higher prescription drug prices and allow rampant currency manipulation by other countries.

Anyone who thinks this rotten deal will help address inequality in America clearly isn’t paying attention (or even worse, they’re drinking the corporate Kool-Aid).  Bottom line, progressives like Bernie Sanders and Hillary Clinton are rejecting the deal. Conservatives are also blasting it, including Republican congressional candidate Scott Jones, who’s running against Rep. Ami Bera, who sold-out workers on last year’s fast track vote. The notion that Cabaldon and his bogus “progressive” coalition are supporting workers is laughable. Real progressives (as well as many other folks across the political spectrum) oppose the TPP and know from experience this deal will further gut out the middle class.

Pulaski:

The legacy of America’s broken trade policy is shuttered factories, outsourced jobs and a widening gap between the wealthy and everyone else. It doesn’t have to be this way. It’s time for Congress to take a stand in support of working people instead of kowtowing to corporate lobbyists. For the sake of our future, Congress must reject the TPP.

Cross post from Labor’s Edge

STUDY: Prevailing Wage Adds 17,500 Jobs to California Economy

Prevailing Wage policies add 17,500 jobs and $1.4 billion in output across California’s economy, according to a new study released by Smart Cities Prevail – a leading construction industry education and research organization.  

Entitled, Building the Golden State-The Economic Impacts of California’s Prevailing Wage Policy, the first-of-its-kind report was co-authored by Colorado State University-Pueblo Economist Dr. Kevin Duncan and Smart Cities Prevail Researcher Alex Lantsberg. The study was conducted using IMPLAN software (the industry standard for analyzing the effects of government policy choices on the economy) to model the impact of eliminating California’s prevailing wage standards.

In addition to measuring the policies’ impact on job creation and overall economic output, the study also concludes that prevailing wage policies facilitate broad improvements to the construction industry as a whole–including substantial reductions in materials waste and dramatic increases in both local hiring and overall workforce productivity.

To Download the Full Report, Click Here.

“While past research has already concluded that prevailing wage promotes workforce development, safer job sites, less dependence on public assistance, and has only negligible impacts on project cost, these new findings show the value of these standards both to the construction industry and our economy as a whole,” said Dr. Kevin Duncan.  “From creating jobs to increasing efficiency, it is clear that prevailing wage policies provide taxpayers with a far better return on investment than the less beneficial alternative.”

While California has recently enacted new legislation (SB 7) to encourage more of its cities to enact prevailing standards, several other states-including Nevada, Wisconsin, Indiana, and Michigan–are either considering or have recently passed laws to weaken prevailing wage requirements on public works.

“This study provides important context for the recent changes to California’s prevailing wage laws, but also for the debates that are happening in other states across our country,” Lantsberg said.  “The data shows that the decision to weaken or eliminate prevailing wage is a choice that can increase poverty, export more tax dollars out of state, and eliminate thousands of jobs in the process.”  

Lantsberg added, “It’s important to note that this study focuses on the benefits of the state prevailing wage policy, but does not analyze the additional positive benefits that come from federal and local policies.  For example, the state and federally funded high speed rail project in California is estimated to create 20,000 prevailing wage construction jobs in the first 5 years of construction, and tens of thousands more in the years that follow.”

Consequences of Prevailing Wage Elimination in California:

– Gross job losses of 48,500 and net job losses of 17,500

– 3%-5.5% increase in out-of-state contracting

– State Economic output reduced by $1.4 billion

– Real income reduced by $1.5 billion

– More construction professionals living at or near the poverty line.

– 12% decline in workforce productivity and 5% increase in materials waste

Kevin Duncan, Ph.D. is a nationally recognized economist specializing in labor and regional economics.  Dr. Duncan currently works as a Professor of Economics in the Hasan School of Business at Colorado State University – Pueblo and Senior Economist at BCD Economics, LLC.  he teaches regional economics where his students learn economic impact analysis.

Alex Lantsberg is a researcher with Smart Cities Prevail specializing in economics, land use, and urban planning.  Mr. Lantsberg holds a Master’s Degree in City Planning from the University of California, Berkeley and an undergraduate degree in finance from Northern Illinois University.

Prevailing Wage is the standard rate paid on publicly funded projects to a worker in a given trade, in a given region.  Prevailing wage laws were first established federally and in some states in the 1930s – and supported by leaders from both political parties – in order to raise the quality of government funded construction projects and encourage more local hiring.  

Smart Cities Prevail is a non-profit 501(c)(4) organization and California’s leading research and informational resource on prevailing wage.   For more information, visit www.smartcitiesprevail.org.

What Color is the Sky in Joel Fox’s Fantasy World?

by Steve Smith

There’s been a lot of attention lately on California’s turnaround. As it turns out, that nonsense about all our jobs moving to Texas was a just Texas-sized whopper. Last year California created about 500,000 jobs to lead the nation in job growth, outpacing the conservative darling Texas.

Basically, the corporate narrative about California has gone up in smoke. In the last several years, California has done a litany of things that the corporate crowd claims kill jobs. We raised the minimum wage. We raised taxes on the rich with Prop 30 to better fund schools and public safety. We guaranteed paid sick days for all workers. We eliminated the wasteful enterprise zone tax credits for big businesses that cost the state nearly $1 billion per year. We got rid of another tax giveaway to business with Prop 39 and instead funneled those funds into clean energy projects that create good jobs. We strengthened regulations that protect workers and the environment. The list goes on and on.

So imagine my surprise when I read Joel Fox’s blog on Fox & Hounds claiming that the Chamber of Commerce was actually responsible for the job growth in California. Oh, ok. Sure. That makes total sense, Joel. The Chamber constantly derides California as the most anti-business state in the country and now wants to claim credit for our success? That makes about as much sense as that idiotic scheme you participated in during the 2012 election to help the Koch Brothers and their rich, out-of-state friends funnel millions into California to help pass the anti-worker Prop 32 and defeat Prop 30. But, I digress.

Hidden at the bottom of Fox’s inane blog is the one line we should all pay attention to in the context of this argument.

The Chamber’s goal is to keep business costs low to improve the economy statewide.

By lowering “business costs” he means eliminating protections for workers and the environment, shrinking wages for workers, while cutting taxes on CEOs and the wealthiest among us. California has roundly rejected this shortsighted notion, unlike, say, Kansas, which is seeing the disastrous effects of implementing the big business plan.

California, under Gov. Jerry Brown, has shown the real path forward.  You can create jobs AND protect workers and the environment. You can put more money in the pockets of those at the bottom while creating shared prosperity that benefits the economy as a whole. You can make the rich pay their fair share to fund our schools, public safety and other important services without hurting job growth. You can protect immigrant workers against exploitation and strengthen the ability for all workers to stand together in unions without hurting competitiveness. In fact, when you do those things, jobs DO grow. Wages DO grow. The economy gets stronger. And most importantly, lives change for the better.

Still, too many workers are struggling today. Now isn’t the time to go backward on workers’ rights. Instead, it’s time to step on the pedal so we raise standards for all workers to combat growing inequality. The last few years we’ve put to rest the narrative that says doing good things for workers and the environment kills jobs.

So let’s not waste time and let’s continue doing more of what we know works. More investment in California’s working people makes California a better place to live and raise a family. More support for workers and their families lowers poverty while creating an economy that works for everyone. And we do this not with the help of the Chamber of Commerce and its corporate CEO funders, we do it in spite of them.  

How Outsourcing Web Development Service Can Benefit Your Business?

To stay ahead of their competition businesses drastically depend on e-commerce technologies In today’s challenging world. Following latest market trends can bring online success for your business at rapid pace else you will be another dust in the wind in the current competitive industry. This technological era has indisputably kept everyone alerted to stay ahead of the game.

Hiring a technical web development company is a benefit for many businesses. Effective web development agency offers distinctive and high quality website design services to create your strong online digital presence. To keep informed of latest technologies for business advancement, market is significantly relies on e-commerce technology. These technologies have become the primary approach to uncover your business presence worldwide. To ensure this effective digital presence of your business  products and services, it is essential to have professional web development services.

Outsourcing web development services can bring your business many benefits. Professional web development agencies design user friendly and eye-catching websites with easy to use facility for your visitors at affordable rates. This helps in attracting user’s attention to  your website to increase business customers. They focus on understanding business requirements and client’s objectives, accordingly crafting a website that is congenial to your business needs. This automatically embellish your corporate identity and help you with increased ROI over your business. And above all, web developers help businesses lowering their encroachment and maintenance costs.

Having a strong digital presence will put you on a road to success if users can find you easily. Outsourcing web development service also ensures this aspect of the website management for you. Moreover, they also assist your business with web hosting service to avoid any web related issues.

Being a successful business requires significant amount of time with costs in the initial stages. In deciding an effective web development agency, it is worthwhile to take a smart pick to get excellent web designs with value for money. Don’t make costs the deciding factor. What matters is the quality and on time delivery within the postulated budget.

Having your website designed with Outsource Designing will ensure your effective digital online business with proven results. We not only save you time but also encourage you in building your business performance.

http://outsourcedesigning.com/…

To stay ahead of their competition businesses drastically depend on e-commerce technologies In today’s challenging world. Following latest market trends can bring online success for your business at rapid pace else you will be another dust in the wind in the current competitive industry. This technological era has indisputably kept everyone alerted to stay ahead of the game.

As We Celebrate Labor Day


As we celebrate Labor Day this week, we wanted to take a moment to thank the hard working construction workers who literally built our state.

Recently, the Los Angeles Times published a list of the 10 most dangerous jobs in America.  Four of the 10 were jobs in construction related fields.

Just last week, The San Francisco Chronicle reported on the fatality of a worker in Berkeley while laying asphalt at a school.  This and stories like it are why our fight to protect prevailing wage is so important.

We all know about the benefits of prevailing wage to families who find a ladder to the Middle Class and the higher quality of buildings built by prevailing wage workers, but often the safety argument doesn’t get enough attention

The fact remains that construction jobs are dangerous, and prevailing wage leads to training and standards that make the jobs much safer. .  Apprenticeship programs supported by prevailing wage provide a framework for years of training so that workers learn the most efficient and safest possible way to practice their tradecraft.

A study of what happened when the State of Kansas repealed prevailing wage statewide, and the results were grim.  Serious injury rates increased by 21%.  If that wasn’t enough, income fell by 10%, apprenticeship training fell by 38% overall, and 54% for minorities.

Given these facts, it’s not surprising that three recent polls showed overwhelming support for prevailing wage in California – both statewide and in San Diego where projects covered by prevailing wage were just expanded.

When opponents argue to repeal prevailing wage, they fail to mention the staggering risk to workers, their families, and their community.  Right now, they are lobbying to eliminate prevailing wage city-by-city by convincing cities across California to pass hastily crafted, unnecessary charters – even though the facts are stacked against them.

So as we consider Labor Day, we thank those who put their life on the line to build California’s future, and recommit our efforts to help community leaders and the public understand what is at stake in our fight to protect and grow the Middle Class, and I can think of no better way for you to show your appreciation than to sign our petition to protect prevailing wage.

Google’s Page Clueless When It Comes to Privacy Concerns About Glass

Google CEO Larry Page simply doesn’t get it when it comes to privacy concerns about the Internet giant’s new computerized eyewear, Google Glass.   He made that crystal clear at the annual shareholders’s meeting Thursday.

I made my annual trek to Mountain View  to attend the Internet giant’s shareholder meeting and pose some questions directly to Google’s top executives.  I said Glass is one of the most privacy invasive and Orwellian devices ever made because it allows a user to surreptitiously photograph or video us or our kids.  “It’s a voyeur’s dream come true,” I said, before noting the hypocrisy in unleashing a device that enables massive violations of everyone else’s privacy, but operating under rules that barred cameras and recording devices from the meeting. Take a look at a video from the meeting.

“Obviously, there are cameras everywhere, ” responded Page.  “”People worry about all sorts of things that actually, when we use the product, it is not found to be that big a concern.”

“You don’t collapse in terror that someone might be using Glass in the bathroom just the same as you don’t collapse in terror when someone comes in with a smartphone that might take a picture. It’s not that big a deal. So,  I would encourage you all not to create fear and concern about technological change until it’s actually out there and people are using it and they understand the issues.”

Page tried to compare the video cameras on ubiquitous smartphones with Google Glass.  That’s exactly the point.  There is a huge difference.  I don’t collapse in fear that I’ll be videoed in the bathroom by a smartphone camera precisely because it’s obvious that someone is using the camera.  I can politely ask them to stop, or escalate my protests as appropriate if necessary. Indeed, consider this satirical video, “Supercharge”, featuring Page and Executive Chairman Eric Schmidt if you don’t understand what I mean. It’s  obvious Schmidt is invading the privacy of the gentleman in the next stall.  Take a look at the video.  You’ll see what I mean.

It doesn’t work that with Glass and that’s what is so creepy. There’s an app that snaps a photo with a wink.  People have no idea that they are being photographed or videoed.  That’s what people are worried about and they want the ability to delete videos and photos from Google’s database when they discover their privacy has been invaded.

Page says we shouldn’t worry about “technological change until it’s actually out there and people are using it.”  He’s wrong.  You need to to think about the impact before the technology is implemented.  That’s what’s entailed in the concept of privacy by design, something that Google just doesn’t seem to get.

And here’s another point to ponder: As Google was holding its annual meeting, The Washington Post was breaking the details of NSA’s overreaching, intrusive snooping on users of some of the biggest Internet companies including Google with its PRISM program.  Can’t you imagine a billion Glass users and a billion winks and the data that would flow to NSA?

____________________________________________________________________

Posted by John Simpson, Consumer Watchdog’s Privacy Project.  Follow Consumer Watchdog online on Facebook and Twitter.

Calling for Meaningful Wi-Spy Penalties Against Google

Google-FTC

Says State Attorneys General $7 Million Deal with Google Won’t Stop Company’s Serial Privacy Abuses

The $7 million deal announced today ending a multi-state investigation of the Google Wi-Spy scandal does virtually nothing to thwart the Internet giant’s repeated privacy violations, Consumer Watchdog said.  The public interest group said Google should pay an amount that would affect its profits.

In addition to the $7 million to be divided among the 38 states and the District of Columbia that were involved in the investigation, the settlement deal provides that Google will create an educational campaign that features a YouTube video to teach consumers about protecting privacy on Wi-Fi networks.

“Asking Google to educate consumers about privacy is like asking the fox to teach the chickens how to ensure the security of their coop,” said John M. Simpson, Consumer Watchdog’s Privacy Project director. “The educational video will also drive consumers to the YouTube platform, where Google will just gather more data about them for its digital dossiers.”

Read the settlement with the state attorneys general here.

Google has become a serial privacy violator, Consumer Watchdog said.  In the Wi-Spy case the company sucked up data including such things emails, passwords, and bank account numbers as its Street View cars photographed streets around the world.  Before that the company exposed personal information of it users when it launched its unsuccessful “Buzz” social network.  That privacy breach prompted a consent agreement with the Federal Trade Commission.  No sooner was the ink dry on the settlement, than Google violated it by hacking around the privacy settings on the Safari browser used on iPads, iPhones and other Apple devices.

“This settlement does nothing too stop Google as a serial privacy violator.  The company now has a long history of violating users’ privacy, lying about it, apologizing, promising not to do it again, sometimes making a token penalty payment and then moving on to the next violation,” said Simpson. “The $7 million penalty is pocket change for Google; it’s clear the Internet giant sees fines like this as just the cost of doing business and not a very big cost at that.”

New Report: Wells Fargo’s at the Bottom of the Heap

When it comes to foreclosing on Californians, it looks like Wells Fargo may take the prize.  According to a report released today, Wells Fargo is responsible for more homes in the foreclosure pipeline in California than any other single lender.  

Wells Fargo is servicing the most loans, but they are providing less principal reduction to struggling borrowers than either Bank of America and Chase – who themselves should be doing more!  Wells Fargo trails behind Bank of America and Chase when it comes to the amount of principal reduction given with first lien loan modifications, according to the Monitor of the multi-state Attorneys General settlement with the five big mortgage servicers.

This is the very same Wells Fargo that just had its most profitable year ever in 2012, with earnings of $19 billion.  

The report, California in Crisis: How Wells Fargo’s Foreclosure Pipeline Is Damaging Local Communities, by ACCE (Alliance of Californians for Community Empowerment), the Center for Popular Democracy and the Home Defenders League, shows the harm coming to homeowners, communities and the economy unless Wells Fargo reverses its course and averts some or all of the impending foreclosures.  

Download the report at: http://www.calorganize.org/sit…

The report uses data from Foreclosure Radar to look at loans currently in the foreclosure pipeline in California – meaning loans that have a Notice of Default or Notice of Trustee Sale. Of the 65,466 loans in the foreclosure pipeline, close to 20% of them are serviced by Wells Fargo.

If Wells Fargo’s 11,616 distressed loans go through foreclosure, California will take a next $3.3 billion hit: Each home will lose approximately 22 percent of its value, for a total loss of approximately $1.07 billion; homes in the surrounding neighborhood will lose value as well, for an additional loss of about $2.2 billion; and government tax revenues will be cut by $20 million, as a result of the depreciation.  

And not surprisingly, African American and Latino communities will be particularly hard-hit. The report includes maps for seven major cities showing minority density and dots for each of Wells Fargo’s distressed loans. In city after city, they are heavily clustered in neighborhoods with high African American and Latino populations.

“My community has been absolutely devastated by the foreclosure crisis, and I put a lot of the blame at the doorstep of Wells Fargo,” says ACCE Home Defenders League member Vivian Richardson.   “Wells Fargo’s heartless and unfair foreclosure practices are sending far more homes into foreclosure than is necessary.”  

“Our communities and our entire State are still reeling from the housing crisis, and will be for years to come,” said San Francisco Supervisor David Campos.  “As this report shows, the numbers of homes still facing foreclosure is enormous.  Principal reduction is clearly a critical strategy for saving homes and stabilizing the economy.  Wells Fargo and the other major banks should be doing more of it.”

The report recommends:

1. Wells Fargo should commit to a broad principal reduction program.  

This means that every homeowner facing hardship should be offered a loan modification, when Wells has the legal authority to do so. The modification should be based on an affordable debt-to-income ratio, achieved through a waterfall that prioritizes principal reduction and interest rate reductions. Junior liens must also be modified.

2. Wells Fargo should report data on its principal reduction, short sales, and foreclosures by race, income, and zip code.  

Wells Fargo must be more transparent about its mortgage practices. The bank has an egregious history of harming California’s African American and Latino communities through predatory and discriminatory lending. To show the public that it has reformed, Wells Fargo must make this data available. The people of California need to know that Well Fargo is no longer discriminating against people of color and is fairly and equitably providing relief to homeowners and to the hardest hit communities.  

3. Wells Fargo should immediately stop all foreclosures until the first two demands are met

In the event that it takes a few months to set up a fully functioning principal reduction program, Wells Fargo needs to immediately stop all foreclosures. Wells Fargo has done enough harm. It’s time to stop. California deserves a break.

ACCE is waging a campaign to push Wells Fargo to be a leader in California, their home state, in saving homes – beginning with their performance to comply with the Attorneys General Settlement and with the Homeowner Bill of Rights, but not ending there.  

To sign on to a letter to Wells Fargo CEO John Stumpf to support the campaign demands, click here: http://salsa.wiredforchange.co…

ACCE is a multi-racial, democratic, non-profit community organization building power in low to moderate income neighborhoods to stand and fight for social, economic and racial justice. ACCE has chapters in eleven counties across the State of California. For more information visit http://www.calorganize.org/ or follow ACCE on twitter @CalOrganize

Will Google Buy Its Way Out Of Trouble For A Mere $7 million?

Google

Reports were circulating in the tech press Friday that serial privacy violator Google is about to cut a deal with state attorneys general to close their investigation of the Wi-Spy scandal.

Remember what happened?  Google sent specially equipped cars to travel the highways and byways of the world snapping photos of everything they passed.  What Google did not say was that were also sniffing out Wi-Fi networks and sucking up private data on those networks.

They got passwords, account numbers and email messages, including in France a couple trying to arrange an extramarital affair.

When first confronted, Google executives denied sucking up the data.  Then they said it was all a mistake.  Then they said it was the work of a rouge engineer. Consumer Watchdog was among those to call on the Federal Trade Commission to investigate. The FTC did, but dropped the probe after Google essentially said, we’ll be nice.

John Simpson The Federal Communication Commission opened a probe ultimately fining Google $25,000 for hindering its investigation.  The FCC also found that the Wi-Fi snooping had been deliberate and that senior managers had been aware of it.  The FCC said it could not determine if the law had been broken because the engineer who designed the Wi-Fi snooping exercised is Fifth Amendment rights and declined to testify.

Google tried to spin the FCC probe by saying the commission found they had not broken the law. That’s not what happened; the FCC said they could not determine if the law had broken. A big difference.

Meanwhile, under the leadership of then Connecticut Attorney Richard Blumenthal, more than 30 state attorneys general launched their investigation of the incident, which is really the largest case of wire tapping in history.

It’s that state attorneys general probe that is reportedly about to be settled for $7 million.  That may sound like a lot, but it’s not even pocket change to the Internet giant, which made $10.7 billion profit on revenues of $50.2 billion in 2012. Divide the fine among the states and it comes out to about $230,000 for each.

I asked Susan Kinsman, spokesperson for Connecticut Attorney General George Jepsen, now heading the investigation, about prospects for a deal.  She said, “I spoke to our attorneys for a status report. As we’ve stated before, the Google investigation is active and ongoing. I can’t comment about any prospect for a settlement.”

Nonetheless, there are enough sourced reports out there, focusing on the $7 million deal that it sounds like it’s accurate.  It was probably leaked on Friday by Google itself. That’s the way they usually play the PR game. By the time the settlement is officially announced it will be old news.

What’s important, by the way, is not the measly $7 million fine.  It’s understanding what’s really happening. Once again it looks like Google, the serial privacy violator, is buying it’s way out of a jam with what for the Internet giant is pocket change.

We’ll need to see what other provisions the settlement contains.  Will the state attorneys general give Google the same sort of pass that the FTC did when it allowed Google to explicitly deny it broke the law in the Safari hacking scandal and charged Google $22.5 million? What will happen to the data Google sucked up? Will there being any meaningful injunctive relief?  Given Google’s record of repeated privacy violations and of bamboozling regulators, I’m not optimistic that much of anything significant will emerge.

______________________________________________________________________________________

Posted by John M. Simpson. John is a leading voice on technological privacy and stem cell research issues. His investigations this year of Google’s online privacy practices and book publishing agreements triggered intense media scrutiny and federal interest in the online giant’s business practices. His critique of patents on human embryonic stem cells has been key to expanding the ability of American scientists to conduct stem cell research. He has ensured that California’s taxpayer-funded stem cell research will lead to broadly accessible and affordable medicine and not just government-subsidized profiteering. Prior to joining Consumer Watchdog in 2005, he was executive editor of Tribune Media Services International, a syndication company. Before that, he was deputy editor of USA Today and editor of its international edition. Simpson taught journalism a Dublin City University in Ireland, and consulted for The Irish Times and The Gleaner in Jamaica. He served as president of the World Editors Forum. He holds a B.A. in philosophy from Harpur College of SUNY Binghamton and was a Gannett Fellow at the Center for Asian and Pacific Studies at the University of Hawaii. He has an M.A. in Communication Management from USC’s Annenberg School for Communication.

Consumer Watchdog Calls On FTC to Seek Do Not Track Legislation

photo spyphones.jpg

Consumer Watchdog Wednesday called on the Federal Trade Commission to ask Congress to pass Do Not Track legislation because “the self-regulatory effort to design Do Not Track is virtually dead in the water.”

In a letter to FTC Chairman Jon Leibowitz John M. Simpson, the nonpartisan nonprofit public interest group’s Privacy Project Director wrote:

“Almost a year ago with great fanfare in the media you said a Do Not Track mechanism would be in place by the end of last year.  You and you colleagues opted to rely on a self-regulatory process to implement Do Not Track, but alluded to the possibility of legislation if that process failed.  Not surprisingly the self-regulatory effort to design Do Not Track is virtually dead in the water.  After a year nothing has changed for the consumer.  You tried to use the bully pulpit, but the advertising industry did not heed your call. The time for words has passed; if you expect Do Not Track to be implemented, the Commission must endorse Do Not Track legislation now.”

Read Consumer Watchdog’s letter here

“As the Commission advocated in its report, Protecting Consumer Privacy in an Era of Rapid Change, a Do Not Track mechanism would offer people control over whether data about them was collected,” Simpson wrote.

Consumer Watchdog noted that the World Wide Web Consortium (W3C), an Internet standards setting organization, has been trying to develop specifications about how the Do Not Track message would be sent and what the obligations would be for a website that receives it.  “Talks have dragged on more than a year with weekly conference calls and six face-to-face meetings, while the W3C’s Tracking Protection Working Group has grown to 102 members,” Simpson wrote. “Another round of meetings is scheduled next month. Talks can at best be charitably described as stalled.”

“You and the Commission repeatedly put faith in self-regulatory efforts and predicted that a Do Not Track mechanism would be in place by the end of the year,” Simpson wrote.  “Unfortunately that optimism has proved to be unwarranted.”

The letter concluded:

“The end of the year as passed. Your words have gone largely unheeded by the advertising industry. The bully pulpit has not brought about a Do Not Track standard. Lest your words be taken as empty threats and given the logjam in the World Wide Web Consortium process, the time for decisive action by the FTC has arrived.  Sen. Jay Rockefeller, (D-WV) introduced a Do Not Track bill in the last session of Congress.  We understand he intends to re-introduce the bill this session.  We call on you and the entire Commission to endorse the urgent need for Do Not Track legislation.  If nothing else, the threat of legislation could be the stick that prompts a recalcitrant advertising industry to stop its foot dragging and re-engage in real negotiations.”

The letter cited numerous times that Leibowitz had predicted the implementation of Do Not Track by the end of last year and raised the possibility of legislation if the effort failed.  For instance, the letter noted:

“‘We are definitely at a critical point in whether folks will be able to come together and develop a real Do Not Track option for consumers,’ you told Politico in October. You said the lack of consensus was ‘encouraging the possibility of legislation — maybe not today, maybe not in the lame duck, but soon.’ You also told The New York Times, ‘It is time to drop some of the bluster and work toward compromise.’

“In November you used the bully pulpit again to tell Politico, ‘If by the end of the year or early next year, we haven’t seen a real Do Not Track option for consumers, I suspect the commission will go back and think about whether we want to endorse legislation.’ ”