Advocacy Filings
Advocacy Filings (Summary)
| Agency/State | Matter Number | Subject/Issue | Authorization Date |
| Copyright Office | V960014 | Open Video Systems Licensing | 09/13/96 |
| Federal Communications Commission | V960013 | 900-Numbers | 08/26/96 |
| V950014 | Local Multipoint Distribution Service | 08/22/96 | |
| V960009 | Open Video Systems | 07/15/96 | |
| V960007 | Paging License Allocation Procedures | 03/18/96 | |
| Federal Energy Regulatory Commission | V960008 | Merger Standards | 05/06/96 |
| Food and Drug Administration | V960001 | Direct-to-Consumer Promotion | 01/11/96 |
| V960002 | "Pharmaco-Economic" Claims | 01/16/96 | |
| Massachusetts | V960012 | Wholesale Liquor Price Advertising | 06/25/96 |
| Tennessee | V960005 | Veterinary Form-of-Practice | 02/02/96 |
| Virginia | V960015 | Real Estate Settlements | 09/19/96 |
| Washington | V960006 | Certified Public Accountant Qualifications | 03/18/96 |
Advocacy Filings (Detail)
Federal Agencies
Copyright Office: Open Video Systems Licensing
Staff of the San Francisco Regional Office and the Bureau of Economics filed a comment with the Copyright Office recommending that it extend the compulsory licensing arrangement for cable television systems to open video systems (OVS). OVS, established under the Telecommunications Act of 1996, will combine features of common carriers and cable systems in providing video programming. Staff said that applying the cable compulsory license to OVS, rather than having OVS negotiate separate copyright licenses for each broadcast channel, could benefit consumers because it would lead to an allocation of resources that better reflected the relative costs of different video distribution methods and would reduce the OVS's cost of acquiring programming, making its acquisition costs comparable to those of other distribution technologies. In addition, the staff recommended that the copyright liability rest with the firm providing the programming on the OVS, not with the OVS operators.
Federal Communications Commission: 900-Numbers
Federal Trade Commission staff filed comments with the Federal Communications Commission (FCC) supporting its efforts to keep unscrupulous pay-per-call service providers from evading federal regulations governing the 900-number industry. In particular, staff supported the FCC's efforts to prevent pay-per-call transactions from being disguised as long-distance calls by requiring that whenever a provider of information or entertainment programs gets any remuneration for calls to such a program, the calls must fall within the 900-number dialing code. Staff said that consumers would likely benefit from this proposal because it would allow them to recognize telephone numbers for calls that entail charges above regular long-distance charges, would subject the calls to cost-disclosure and billing-dispute requirements, and would enable consumers to prevent charges for unauthorized calls by blocking 900 numbers. The Commission also said it supports efforts to narrow an exemption from regulatory requirements in situations where there is a "presubscription" agreement between the caller and the information provider, by requiring that such agreements be in writing.
Federal Communications Commission: Local Multipoint Distribution Service
Federal Trade Commission staff filed comments with the FCC about policies for awarding licenses for local multipoint distribution service (LMDS), which can be used for two-way voice, video, and data transmission, potentially in competition with local telephone or cable companies. Staff said that local telephone or cable companies that acquired an LMDS license for the same geographic area in which they offer their current service, given enough market power, could either warehouse the LMDS license to forestall a third party from coming in and competing, or could raise the price of both services they offer. In general, staff supported the FCC's proposals to adopt a cross-ownership rule that, rather than strictly prohibiting the award of licenses to cable or telephone companies whose service areas overlap the area for the LMDS license, would permit the incumbent cable or telephone service operator to acquire an LMDS license as long as the overlap was no more than a certain percentage of the area. Staff concluded that until such time as effective competition is present in these markets, the acquisition of LMDS spectrum licenses by competing local exchange carriers and cable operators presents potentially significant risks.
Federal Communications Commission: Open Video Systems
Staff of the Federal Trade Commission and the Antitrust Division of the Department of Justice filed comments with the FCC in opposition to petitions for reconsideration of the FCC's recently adopted rules to permit the operators of open video systems (OVS) to limit the ability of competing, in-region cable operators to demand carriage of their programming on the OVS. Staff supported the FCC's decision to permit an OVS operator to discriminate against or exclude a directly competing dominant cable company when such discrimination or exclusion is reasonable and just under the Telecommunications Act of 1996. This approach, staff concluded, comports with the mandate of the Act that the FCC accelerate the emergence of competition in this market.
Federal Communications Commission: Paging License Allocation Procedures
The Federal Trade Commission filed comments with the FCC supporting its proposed revisions to its paging licensing rules and distribution through competitive bidding. The Commission observed that several of the proposed bidding procedures, such as requiring a bidder to disclose its business classifications and posting upfront payments, will help deter fraud. The Commission suggested that the proposed bidding procedures can be strengthened further, to prevent fraudulent abuse of the auction process, by requiring applicants, prior to auction, to disclose the identities of the real parties in interest and financial information. In addition, applicants should certify, prior to auction, that the license will comply with any FCC transfer restrictions and performance requirements. The Commission further suggested that the application and competitive bidding procedures require that bidding agents and application preparers disclose material information about paging license regulations to the licensee and to all interested parties.
Federal Energy Regulatory Commission: Merger Standards
The staff of the Bureau of Economics filed comments with the Federal Energy Regulatory Commission (FERC) recommending measures to assist in FERC's evaluation of whether electric utility mergers will be anticompetitive and increase costs for consumers. Staff suggested relying on the Horizontal Merger Guidelines, examining actual market concentration and competitive conditions, examining competitive conditions among generation suppliers, and modeling transmission flows. Staff concluded that open access to transmission services should enable increased competition among power generators to benefit consumers through lower rates.
Food and Drug Administration: Direct-to-Consumer Promotions
Commission staff filed comments with the Food and Drug Administration (FDA) in response to a notice of proposed rulemaking concerning its regulation of direct-to-consumer advertising for prescription drugs. Staff suggested that the FDA consider adopting an approach similar to the Commission's Deception Policy Statement and Statement on Advertising Substantiation to assist in evaluating prescription drug advertisements. Staff recommended that limiting current disclosure requirements and adjusting disclosure requirements according to advertising venues could increase the net benefits of direct-to-consumer advertisements. Staff also recommended that the FDA consider alternative means for ensuring consumer access to important information, replacing the highly technical and lengthy "brief summary" currently appearing in consumer-directed prescription drug advertising.
Food and Drug Administration: "Pharmaco-Economic" Claims
Commission staff filed comments with the FDA in response to a notice of proposed rulemaking concerning how structural changes in the health care industry affect its responsibilities to regulate drug marketing and promotion. Staff suggested that the FDA consider a more flexible substantiation standard requiring competent and reliable evidence whose level could depend on the claim being made, rather than a standard containing an a priori requirement. Staff also suggested that the FDA may wish to consider a disclosure approach for any deception concerning "switch" programs, programs in which pharmacists in managed-care plans seek physician approval to switch a patient from a prescribed drug to a drug from a manufacturer affiliated with the pharmacist. Clear and conspicuous disclosures could cure deception while preserving the economic benefits of these programs.
States
Massachusetts: Wholesale Liquor Price Advertising
In a statement to the Massachusetts Alcoholic Beverages Control Commission, Boston Regional Office staff supported repeal of a Massachusetts rule that facilitates wholesale-level collusion in liquor. Staff suggested that the rule, which requires liquor wholesalers to file a price list prior to the month in which the list will be effective, may harm competition by deterring price changes. The rule may also prevent incentive discounts in the form of free goods and promotional discounts. Staff concluded that repealing the rule would tend to encourage competition in the sale of alcoholic beverages in Massachusetts.
Tennessee: Veterinary Form-of-Practice
The Atlanta Regional Office submitted comments to the Tennessee State legislature supporting a bill that will permit veterinarians to practice as employees of non-veterinarians under certain conditions. Staff suggested that prohibiting jointly owned or operated facilities could prevent efficient combinations of business practices or operations that might result in lower prices to consumers, while admitting new business formats that Tennessee's law now prohibits could have a positive effect on competition and might afford consumers a wider selection of services and costs.
Virginia: Real Estate Settlements
Staff of the Commission and the Department of Justice submitted a joint comment to the Virginia State Bar urging against adoption of the Bar's proposal to prevent non-lawyers and title company attorneys from handling closings of real estate transactions and refinancings. Staff said that the proposal, which would particularly affect consumers who are obtaining home equity loans or refinancing existing real estate loans, would be anticompetitive and would increase costs to consumers by forcing consumers who would not otherwise hire an attorney for a real estate closing to do so and would likely cause the price of lawyers' settlement services to increase, by eliminating competition from lay settlement services. Staff concluded that uninformed consumers could be protected by measures far less anticompetitive than an outright ban on non-lawyer closings.
Washington: Certified Public Accountant Qualifications
Commission staff filed comments with the Washington State legislature on a rule that will require candidates for Certified Public Accountant (CPA) status to earn at least 150 semester hours of undergraduate academic credit. Staff suggested that raising the educational entry requirements for CPA licensure will increase costs of entry and may raise prices to consumers for CPA services. The price effect could cause some consumers to reduce their use of accounting services, substitute similar services at a lower price, or forego professional accounting services altogether.