The announcement by the FTC’s Office of Technology is an important next development in the agency’s commitment to protecting consumers in the digital marketplace. As we look forward to the challenges that the Office of Technology will face, now is a good time to look back at the groundbreaking work of the Bureau of Consumer Protection’s Office of Technology Research and Investigations (OTECH), which will bring its experience and results to the newly created Office of Technology expertise.
Founded in 2012 as BCP’s mobile technology arm, OTECH has proven critical to BCP’s mission through its work in research, innovation and litigation support. To ensure our approach is grounded in empirical research, OTECH conducted first-of-its-kind research on topics such as children’s apps, consumer-generated health data, mobile device tracking and alternative credit scoring products. OTECH also builds bridges with academia, encouraging researchers to put people first and consider the impact of technological developments on consumers.
OTECH tells us that the most innovative consumer protection policies are not developed in isolation. OTECH brings together experienced litigators, savvy technologists, and thoughtful economists to produce novel research, some of which confirm—and some of which disprove—popular assumptions about protecting consumers in digital markets. For example, OTECH designs and conducts cost-effective research on social media algorithms, voice replication, email authentication, and ransomware.
OTECH’s research into how scammers use compromised credit card numbers and other personal information deserves special mention. In one study, OTECH deliberately leaked seemingly authentic information onto a “posting site.” How long does it take for fraudsters to use information they believe is stolen? Nine minutes. In another study, OTECH discovered specific web browsing security vulnerabilities in shopping cart plug-ins on 50 websites. After OTECH attempted to make a controlled purchase but was declined, their “consumer data” was used by fraudsters months after the unsuccessful purchase, suggesting the actual harm caused by the data breach may be far greater than experts initially thought. Much bigger.
While it is impossible to tell the full story in detail, OTECH’s confidential contribution to the BCP investigation and litigation is further evidence of the important role they play in protecting consumers. Legal education may still focus on torts and trusts, but with OTECH’s expertise, BCP attorneys develop a deep understanding of the techniques necessary to investigate facts, build cases, and challenge unfair and deceptive conduct in court.
With many of OTECH’s roles transferred to the Commission’s Technology Office, the agency will benefit from the successful collaborative model pioneered by OTECH. Just this past year, OTECH, working with colleagues at the FTC, played an important role in developing the Commission’s “right to repair” strategy to expand consumer choice and encourage competition. The Bureau of Consumer Protection is proud of OTECH’s decade of service and looks forward to the Office of Technology exploring new areas in serving American consumers.
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