FTC Informational Injury Workshop, December 12, 2017

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FTC Informational Injury Workshop, December 12, 2017 In the Matter of: Informational Injury Workshop December 12, 2017 Condensed Transcript with Word Index For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 Informational Injury Workshop 12/12/2017 1 3 1 UNITED STATES FEDERAL TRADE COMMISSION 1 P R O C E E D I N G S 2 BUREAU OF CONSUMER PROTECTION 2 - ---- 3 BUREAU OF ECONOMICS 3 (Proceeding called to order, 9:15 a.m.) 4 4 INTRODUCTORY REMARKS 5 5 MS. HAN: Good morning. Welcome. On behalf of 6 INFORMATIONAL INJURY WORKSHOP 6 my colleagues here at the Federal Trade Commission, I'm 7 7 happy to welcome you here to our Informational Injury 8 8 Workshop. We are happy to see so many of you here 9 TUESDAY, DECEMBER 12, 2017 9 today. 10 9:15 A.M. 10 My name is Cora Han, and I'm an attorney in the 11 11 Division of Privacy and Identity Protection here at the 12 12 Commission. My co-organizers for today's event are 13 CONSTITUTION CENTER CONFERENCE CENTER 13 Jacqueline Connor, also from the Division of Privacy and 14 400-7TH STREET, S.W. 14 Identity Protection, and two colleagues from the Bureau 15 WASHINGTON, D.C. 20024 15 of Economics, Doug Smith and Dan Wood. 16 16 Before we get started with our program, I need to 17 17 review a few administrative details. Please silence any 18 18 mobile phones and devices. If you must use them during 19 19 the workshop, please be respectful of the speakers and 20 20 your fellow audience members. 21 21 Please be aware that if you leave the 22 22 Constitution Center Building for any reason during the 23 23 workshop, you will have to go back through security. 24 24 Please bear this in mind and plan ahead, especially if 25 Reported by: Susanne Bergling, RMR-CRR-CLR-CMRS 25 you are participating in a panel, so we can do our best 2 4 1 C O N T E N T S 1 to remain on schedule. 2 2 The restrooms are right outside the auditorium. 3 INTRODUCTORY REMARKS: Page 3 3 The Plaza East Cafeteria is located inside the building, 4 Cora Han 4 so you can use it without going through security again. 5 5 The cafeteria is the place to go if you want coffee 6 OPENING REMARKS: Page 6 6 without having to leave the building. It will be open 7 Acting Chairman Ohlhausen 7 during the first part of our midmorning break until 8 8 11:00, and then after it will reopen at 11:30 and remain 9 PANEL 1: INJURIES 101 Page 15 9 open until 3:00. Please remember, however, that no food 10 10 or drink, other than water, is permitted in the 11 PANEL 2: POTENTIAL FACTORS IN Page 68 11 auditorium. 12 ASSESSING INJURY 12 Most of you received a lanyard with a plastic FTC 13 13 event security badge. We reuse these for multiple 14 PANEL 3: BUSINESS AND CONSUMER Page 141 14 events, so when you leave for the day, please return 15 PERSPECTIVES 15 your badge to FTC event staff. 16 16 If an emergency occurs that requires you to leave 17 PANEL 4: MEASURING INJURY Page 208 17 this conference room but remain in the building, follow 18 18 the instructions provided over the building PA system. 19 CLOSING REMARKS Page 270 19 If an emergency occurs that requires the evacuation of 20 Andrew Stivers 20 the building, an alarm will sound. Everyone should 21 21 leave the building in an orderly manner through the main 22 22 7th Street exit. After leaving the building, turn left 23 23 and proceed down 7th Street and across E Street to the 24 24 FTC emergency assembly area. Remain there until 25 25 instructed to return to the building. If you notice any 1 (Pages 1 to 4) For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 Informational Injury Workshop 12/12/2017 5 7 1 suspicious activity, please alert building security. 1 strength of the FTC and that is particularly important 2 Please be advised that this event may be 2 for complex topics like informational injury. 3 photographed, and it is being webcast and recorded. It 3 So to start with the fundamentals, information 4 is also being broadcast via Facebook Live. By 4 injury is my term for the harms consumers may suffer 5 participating in this event, you are agreeing that your 5 from privacy and data security incidents. In a speech 6 image and anything you say or submit may be posted 6 in September on painting the privacy landscape at the 7 indefinitely at ftc.gov or on one of the Commission's 7 FTC, I described some of the types of injury to 8 publicly available social media sites. 8 consumers that the FTC has encountered in its privacy 9 We're happy to welcome those watching via the 9 and data security cases over the years. I also 10 webcast. We will make the webcast and all of the 10 announced my three goals for this workshop. 11 workshop materials available online to create a lasting 11 First, better identify the qualitatively 12 record for everyone interested in these issues. 12 different types of injury to consumers and businesses 13 There will be time for audience questions during 13 from privacy and data security incidents. Second, 14 each of the panels today. Question cards are available 14 explore frameworks for how we might approach 15 on the table in the hallway immediately outside of the 15 quantitatively measuring such injuries and estimate the 16 auditorium and also from FTC staff inside the 16 risk of their occurrence. And third, better understand 17 auditorium. If you have a question, please fill out a 17 how consumers and businesses weigh these injuries and 18 card, raise your hand, and someone will come and get it. 18 risks when evaluating the trade-offs to sharing, 19 Please understand that we may not be able to get to all 19 collecting, storing, and using information. 20 audience questions, but we will do our best. 20 My ultimate goal is to use what we learn today to 21 For those of you on Twitter, we will be tweeting 21 guide FTC case selection and policy work going forward. 22 today's workshop at #infoinjuryftc, and if you would 22 Our discussions will explore the types of negative 23 like to ask a question via Twitter, please tweet your 23 outcomes that arise from the unauthorized access or 24 question using that hashtag. 24 misuse of consumer data and consider factors in 25 Lastly, I want to say thank you to our panelists 25 assessing consumers' informational injury. We will also 6 8 1 for taking part today. We are grateful for your time 1 examine business and consumer perspectives on the 2 and work in the privacy and security area. Aside from 2 benefits, costs, and risks of collecting and sharing 3 the folks that you will see on stage today, this program 3 consumer information. And, finally, we will grapple 4 would not be possible without the great work done by 4 with how to measure informational injuries. 5 Kristal Peters and Bruce Jennings, alongside our 5 But before we get to these important discussions, 6 paralegal support today from Carrie Davis, Anne 6 I would like to touch briefly on the FTC's role in 7 Blackman, Olivia Berry, Courtney Brown, Christine 7 privacy and data security and talk about why this 8 Barker, Amber Howe, and Aaron Kaufman. 8 workshop is both timely and important. Now, as I never 9 Also providing invaluable support are Nathan 9 tire of saying, the FTC is the primary U.S. enforcer of 10 Otlewski from our Division of Consumer and Business 10 commercial privacy and data security obligations. We 11 Education and Nicole Jones and Juliana Henderson from 11 take that charge very seriously. We have brought more 12 our Office of Public Affairs. Thank you, all. 12 than 500 privacy- and data security-related cases, both 13 Now, it is my honor to welcome our Acting 13 online and off, and under my leadership, this work has 14 Chairman, Maureen Ohlhausen, to give opening remarks. 14 continued. Since this summer, we have announced six 15 (Applause.) 15 important privacy or data security cases, Uber, 16 OPENING REMARKS 16 TaxSlayer, Lenovo, and three cases enforcing obligations 17 ACTING CHAIRMAN OHLHAUSEN: Well, good morning, 17 under the EU-US Privacy Shield Agreement. 18 everyone, and thank you for being here for today's 18 Our primary privacy and data security tool is 19 workshop on information injury. I'd also like to thank 19 case-by-case enforcement under Section 5 of the FTC Act 20 all the staff who have worked so hard to make this 20 to protect consumers from deceptive or unfair acts or 21 workshop possible. Special thanks to Doug Smith and Dan 21 practices. One significant benefit of this approach is 22 Wood from the Bureau of Economics and Cora Han and 22 that it limits the need for policy makers to predict 23 Jacqueline Connor from the Bureau of Consumer 23 future developments in the marketplace. This is 24 Protection. The four of you exemplify the interbureau, 24 especially important in complex, fast-changing 25 cross-disciplinary collaboration that is a unique 25 technology industries and in areas such as privacy, 2 (Pages 5 to 8) For The Record, Inc.
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