>> SHUTDOWN IS OFF THE TABLE.
>> TODAY THE FEDERAL RESERVE
WILL PROBABLY RAISE INTEREST
RATES.
>> THAT IS A BIGGER STORY FOR
THE MARKET, THE CONTINUING
RESOLUTION AND SHORT-TERM
PATCHES HAVE BECOME STANDARD
OPERATING PROCEDURE.
>> LET ME SWITCH GEARS AND ASK
ABOUT THE FACEBOOK SITUATION.
THE MINING CONTROVERSY SEEMS TO
GET BIGGER AND WORSE.
FACEBOOK, LET'S TAKE A LOOK, IT
IS FLAT ON THE SESSION.
SO FAR DOWN 2%, CONTINUING THE
SELLOFF, FACEBOOK OFFICIALS
COULD MEET WITH AIDS FROM THE
HOUSE JUDICIARY COMMITTEE AS
SOON AS TODAY AND MARK SICA
BERG IS EXPECTED TO ADDRESS
STAFF FRIDAY
REVEALED CAMBRIDGE MISUSED
PRIVATE INFORMATION MORE THAN
50 MILLION FACEBOOK USERS
DURING THE 2016 ELECTIONS,
PRES. OBAMA'S 2012 CAMPAIGN IS
ALSO BEING SCRUTINIZED FOR
MINING USER DATA TO REACH
LIKELY VOTERS WAS WHAT CAN YOU
DO AS A LAWMAKER IN TERMS OF
GETTING YOUR ARMS AROUND THIS
WAS WE KNOW COMPANIES HAVE MORE
POWER THAN THEY EVER HAD AND
MORE INFORMATION ABOUT
AMERICANS THAN THEY EVER HAD.
>> I'M ON THE
TELECOMMUNICATIONS SUBCOMMITTEE
ON ENERGY AND COMMERCE SO WE
HAVE JURISDICTION OVER THIS
PART OF IT.
WE WILL BE HOLDING HEARINGS BUT
THE IRONY IS A LOT OF AMERICANS
ARE OKAY, KNOWING SOMETHING
ABOUT YOU.
AND KNOW WHAT IS ASKING YOUR
PERMISSION.
I AGREE TO WHATEVER I DIDN'T
READ AND NEXT THING YOU KNOW
THEY ARE MINING YOUR DATA.
TAKING FROM THAT WHAT YOUR
PROPENSITY WOULD BE TO VOTE
REPUBLICAN, DEMOCRAT, THEN YOU
ARE HIT WITH THOSE
ADVERTISEMENTS.
WE SAY BIG BROTHER IS WATCHING,
IN THIS CASE NOT BIG BROTHER
BUT THESE PROVIDERS LIKE
FACEBOOK SO WE DO NEED TO HAVE
THE HEARINGS AND DECIDE IS
THERE LEGISLATION WE SHOULD BE
WORKING ON.
MARIA: WHAT WOULD BE THE
LEGISLATION, WHAT COULD YOU
ACTUALLY DO?
>> NOT UNLIKE THE BANKING AND
OTHER THINGS WHETHER IT IS A
MORTGAGE DOCUMENT, MAKE IT MUCH
MORE APPARENT AND IT COULD BE
AN OPT OUT INSTEAD OF OPT IN OR
OPT IN INSTEAD OF OPT OUT.
DO YOU WANT, CHECK THIS BOX,
NOT JUST BURIED IN THE MINUTIA
OF A 16 PAGE DOCUMENT WHICH
MARIA: THE OTHER SIDE OF THE
ARGUMENT IS WE WILLINGLY GIVE
CERTAIN INFORMATION TO
FACEBOOK.
AND FOR THIRD-PARTY USE.
>> THE IRONY IS, AND THE FOURTH
OF THE FCC, WE WILL GIVE IT
BACK TO THE FEDERAL TRADE
COMMISSION.
THE NET NEUTRALITY RULES ARE
LIKE HEADS PROVIDERS.
IT IS THE ISP, THIS IS HOW
FAULTY THAT LEGISLATION WAS.
PASSED UNDER OBAMA, TOM WHEELER
TRYING TO USURP POWER FROM THE
FEDERAL TRADE COMMISSION.
PART OF THIS WILL GO BACK TO
THE FTC WHICH HAS ALWAYS HAD
JURISDICTION TO SAY THERE ARE
ABUSES.
THEY HAVE GONE TOO FAR.
HOW DO WE REIN THEM IN?
A LOT OF FOLKS DO ENJOY THE
FACT THAT SOMEONE IS MAKING
SUGGESTIONS ABOUT SHOPPING.
>> I WAS NOT SURPRISED TO SEE
THE CAMBRIDGE NEWS.
DURING THE ELECTION FOR ROCK
OBAMA THEY WERE BRILLIANT IN
TERMS OF MINING THE DATA.
HE HAD SUCH A SUCCESSFUL
CAMPAIGN IN TERMS OF KNOWING
HOW TO CAPTURE AS MANY VOTERS
AS POSSIBLE.
EVEN TODAY WE ARE SEEING
INCREDIBLE DONATIONS AS A
RESULT OF THE INFRASTRUCTURE.
DAGAN MCDOWELL IS IN NEW YORK.
WE HAVE SPOKEN ABOUT THIS A LOT
IN TERMS OF PRIVACY BREACHES
AND PEOPLE UNAWARE OF COMPANIES
WHETHER IT IS HER OR OTHERS
TRACKING YOU WITHOUT YOUR
KNOWLEDGE.
DAGEN: THIS RELATES TO A 2007
DECISION FACEBOOK MADE THAT
OPENED UP, IT IS CALLED, YOU
WILL HEAR THIS PHRASE A LOT,
THE SOCIAL GRASP.
THIS IS THE WEB OF FRIEND
CONNECTIONS AND OTHER
INFORMATION, THEY OPENED THIS
UP TO APPS DEVELOPERS, THEY CAN
PLUG INTO THE PLATFORM AND NOT
JUST TRACK ONE INDIVIDUAL BUT
WHAT ALL THE INDIVIDUAL'S
FRIENDS WERE DOING AND AT THE
TIME YOU DIDN'T EVEN KNOW THIS
WAS GOING ON.
TWO PIECES OF NEWS, THERE ARE
REPORTS THAT MARK SOCCER BERG
PLANS TO SPEAK OUT ON THIS
ISSUE, WE HAVEN'T HEARD FROM
HIM.
THE CRISIS MANAGEMENT OF THIS
BY THE LEADERSHIP, HAS BEEN
LAX.
THE WALL STREET JOURNAL ALSO
REPORTS FACEBOOK HAS HAD A
PROBLEM WITH THIS FOR MANY
YEARS.
IN 2010 THERE WAS AN ONLINE
TRACKING FIRM USING FACEBOOK
DATA TO BUILD DATABASES,
PERSONAL INFORMATION AND
SELLING THE DATA TO POLITICAL
ADVERTISERS.
THEY COLLECTED AT THE TIME
INFORMATION ON NEARLY HALF 1
BILLION PEOPLE.
WALL STREET JOURNAL REPORTING
THE FEDERAL TRADE COMMISSION IS
INVESTIGATING WHETHER FACEBOOK
VIOLATED TERMS OF THE 2011
SETTLEMENT AND IT COULD BE FIND
MILLIONS AND MILLIONS OF
DOLLARS OF FACEBOOK VIOLATED
THAT SETTLEMENT ACCORDING TO
THE JOURNAL.
THE HAMMER IS COMING DOWN ON
THIS COMPANY BUT USERS AND
REGULATORS.
MARIA: AND THE INDUSTRY.
>> AND WE SHOULD COME DOWN.
MARIA: HOW WILL IT CHANGE THEIR
BUSINESS, NEW LEGISLATION?
>> THEY CAN'T BE SELLING THIS
INFORMATION.
THAT HITS THE REVENUE LINE
QUITE DIRECTLY AS YOU WILL SEE.
I AM CONFIDENT YOU WILL SEE NEW
LEGISLATION OR THE ENFORCEMENT
WHERE IT BELONGS.
THE FTC WILL BE COMING DOWN ON
THEM.
IT IS MORE EVIDENT.
FREE MARKETS AND DEREGULATION,
IS THE SCENARIO THE GOVERNMENT
SHOULD BE GETTING INVOLVED?
SHOULD THE MARKET SETTLE THIS
OUT?
SHOULD WASHINGTON ALLOW
CONSUMERS TO VOTE WITH THEIR
FEET ON FACEBOOK AND LET
FACEBOOK DEAL WITH ITS OWN
CUSTOMERS?
>> THIS IS WHERE THE FEDERAL
GOVERNMENT SHOULD STEP IN,
ENFORCEMENT THROUGH THE FTC.
>> WE HAVE TO DO IT THROUGH
LEGISLATION, COMMITTEE, ENERGY
AND COMMERCE OR THE ENFORCEMENT
ACTIONS OF THE FTC WHICH IS A
GOVERNMENT AGENCY BUT NOT