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SIIA Response to Ranking Member Cassidy RFI on AI

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In response to Ranking Member Bill Cassidy, the Software & Information Industry Association (SIIA) outlines its perspective on AI in education, health care, and labor:
  1. AI in Education: SIIA believes AI can enhance education by supporting teachers and personalizing learning.
  2. Government Roles: They advocate for an active federal role in AI regulation to avoid a patchwork of state laws.
  3. Best Practices and Standards: SIIA highlights the importance of AI risk management frameworks and voluntary codes of conduct.
  4. AI in the Classroom: They showcase AI’s potential for efficient assessment and reduced teacher workload.
  5. AI for Safety: SIIA mentions an AI solution for identifying self-harm behaviors to enhance school safety.
  6. Impact on Curriculum: AI influences what students should learn, emphasizing the need for digital and media literacy.
  7. Assessment and Teacher Interaction: AI improves assessment and provides more time for teachers.
  8. Trust and Responsible Development: Transparency and principles for responsible AI are crucial.
  9. Global Regulation: SIIA underscores the U.S. role in shaping global AI regulation.
  10. Anti-Discrimination Laws: Existing laws provide a foundation for AI accountability.
 
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SIIA’s Feedback on Proposed Rulemaking for Hart-Scott-Rodino Coverage: An Analysis of 16 CFR Parts 801-803

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In response to the Federal Trade Commission’s (FTC) Notice of Proposed Rulemaking on 16 CFR Parts 801 and 803—Premerger Notification; Reporting and Waiting Period Requirements (NPRM), the Software & Information Industry Association (SIIA) has provided comments. SIIA’s comments revolve around several key points:

  1. The Role of the HSR Act and the Premerger Notification Program: The comments explain the historical context of the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act) and its role in requiring companies to notify enforcement agencies before certain mergers. The purpose of this notification is to allow the agencies to review and potentially block mergers that could harm competition.
  2. The FTC’s Proposed Changes: SIIA discusses the FTC’s proposed changes to the premerger notification rules, which aim to expand the scope of documents required for submission, including early drafts, narrative explanations of business operations, and additional information about labor markets, defense contracts, and messaging systems. The comments highlight that these changes would substantially increase the burden on filers, particularly on small- and medium-sized businesses.
  3. Comments on the Proposed Changes: SIIA argues that the proposed changes could deter innovation, hinder economic growth, and disproportionately affect small companies and startups. The comments point out that the FTC’s estimate of the additional burden on filers is significantly lower than what practitioners in the field believe the actual impact would be. Moreover, the comments question the feasibility of the agencies reviewing the vast amount of additional information during the initial waiting period and highlight concerns about the chilling effect on merger activity.

SIIA notes that the FTC’s proposed changes draw inspiration from practices in the European Union and the United Kingdom but highlights the significant differences in the number of merger notifications received by these jurisdictions compared to the U.S. The comments suggest that these international practices may not be directly applicable to the U.S. context.

SIIA concludes its comments by suggesting that, unless there is a strong justification (which has not been provided), the proposed changes may be inconsistent with the legislative intent behind the HSR Act and the purpose of the Paperwork Reduction Act. Therefore, the association recommends that the Agencies rescind the NPRM and start over.

Read Full Letter Here
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SIIA Urges Caution When Regulating Data Brokers; Response to Remarks from FTC

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The following statement can be attributed to Chris Mohr, President, Software & Information Industry Association on remarks presented by Samuel Levine, Director, Bureau of Consumer Protection at the recent 2023 Consumer Data Industry Association Law & Industry Conference on data brokers.

As the leading trade association for the information industry, SIIA supports privacy regulations applying to many of Director Levine’s concerns around sensitive data and its uses, as well as safeguarding First Amendment-protected free speech. In fact, we have repeatedly advocated for a strong, preemptive federal privacy law that provides clear and consistent protections for consumers and predictable requirements for businesses.

However, although abuses certainly occur, data brokers’ products and services largely enable commerce, prevent crime, and provide the building blocks of ideas: the invisible backbone of functioning markets and a functioning democracy. Far from being malicious, the end uses of this data often provide valuable services consumers have come to take for granted. The public domain that enables law enforcement investigation, investigative journalism, and fraud prevention in which “data brokers” engage is a direct result of constitutional design and protected free expression.

While the activities of data brokers play a significant role in various sectors, the work of private detectives also contributes crucially to maintaining societal order and security. Private investigators often rely on data from brokers to conduct thorough background checks, uncover hidden information, and resolve complex cases. The integration of such data can be seen in services offered by entities like the Shadow Investigations website, which leverages this information to provide accurate and timely insights. This synergy enhances their ability to serve clients effectively, ensuring that investigations are as comprehensive and reliable as possible.

We encourage the FTC not to conflate constitutionally protected publishing activity with real privacy or other harms the Bureau is empowered to prevent. We also caution against well-intentioned data broker legislation that is overbroad in its application, as the First Amendment creates challenges in grouping all “data brokers” into one category. As written, bills such as the Fourth Amendment is Not For Sale Act would go well beyond preventing law enforcement from accessing Fourth Amendment-protected data, and needlessly stymie investigations and preventative law enforcement efforts that keep Americans safe.

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SIIA Statement on FTC Lawsuit Against Amazon

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The following statement can be attributed to Chris Mohr, President, Software & Information Industry Association.

Today, the Federal Trade Commission (FTC) filed its long-rumored lawsuit against Amazon, accusing the company of engaging in anti-competitive conduct. Joined by just 17 state attorneys general, the case appears weak. Among the claims are that Amazon should be prohibited from showing its customers the best online prices for sought-after products, and that the Prime Certification requirement imposes an unfair burden on third-party sellers on the Amazon Marketplace.

Unfortunately, this suit fits a recent pattern of regulatory overreach on the part of the FTC. The lawsuit against Amazon is reflective of a general shift away from what has been the Commission’s core mission for well over four decades: to protect consumer welfare by keeping prices low and encouraging businesses to innovate

In the case of consumer retail, it is well-established that competition between traditional brick-and-mortar shops and online stores is intense and that the line between these two categories has blurred. A finding that any one company enjoys a monopoly is a high bar for the FTC to clear, and it has clearly not been met here.

Under any reasonable interpretation of existing law, there simply is no antitrust harm. Instead of filing meritless lawsuits, the FTC should focus on its proper role, which is to enforce the law as it is.

 

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SIIA Statement on UK US Transatlantic Data Flows Agreement

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The following statement can be attributed to Chris Mohr, President, Software & Information Industry Association:

The Software & Information Industry Association welcomes the announcement of the new agreement between the United Kingdom and the United States to further open up transatlantic data flows. While the UK is no longer a member of the EU, the agreement paves the way for data transfers between the UK and the U.S. to be governed by the EU-U.S. Data Privacy Framework, and removes the need to rely on separate agreements, eliminates the red tape for business and restores data flows to the U.S. while protecting the rights of individuals.

We are pleased to see the two countries continuing to collaborate as part of the Atlantic Declaration announced in June to cooperate and work together on economic, technological, commercial and trade relations.