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Public
Workshop:
Possible Anticompetitive Efforts to
Restrict Competition on the Internet |
Schedule, including a List of Panelists and their Written
Statements
Transcript for October 8th [PDF 384KB]
Transcript for October 9th [PDF 438KB]
Transcript for October 10th [PDF 335KB]
Speakers and Times subject to
change
Underscored Names of Participants link to Their Public
Statements
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Through the workshop, the Commission expects to improve the
understanding of the actual impact of these possible restrictions upon competition and
consumers, and to hear views from a wide variety of perspectives. Expert opinion and
empirical data concerning the costs, benefits, consumer and public policy justifications,
and direct and indirect effects of possible restrictions are welcome from all interested
parties.
- Wine Sales: Wine is a good example of how
the Internet can permit fundamentally different business models to flourish. Through the
Internet, many smaller vineyards, with limited distribution networks, can market their
wines to consumers around the country. Many states, however, limit or prohibit direct wine
sales over the Internet, contending that such limits further the state's interests in
advancing the Twenty-First Amendment's important public policy goal of temperance, in
helping to prevent alcohol sales to minors, and in facilitating tax collection. Lawsuits
are pending in at least six states regarding the direct shipment of wine.
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- Cyber-Charter Schools: Cyber-charter
schools may offer school districts and students a variety of potential benefits. School
districts potentially can reduce overcrowding and cut costs, while students potentially
can receive broader educational opportunities and more challenging courses. On the other
hand, some states and school districts have expressed concern that cyber-charter schools
may undermine traditional public schools.
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- Contact Lenses: Some
studies suggest that Internet sellers may provide consumers with substantial cost savings
and greater convenience by delivering lenses to the consumer's door, while others believe
that online sales of contact lenses may threaten consumer health. In March 2002, the FTC
filed a staff comment before the Connecticut Board of Examiners for Opticians, which is
currently considering whether to require stand-alone sellers of replacement contacts to
obtain Connecticut optician and optical establishment licenses.
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- Automobiles: Automobiles represent one of
the biggest investments for many households, both in terms of their purchase price and
their importance to a family's daily life. A group of Yale University economists have
concluded that consumers who use Internet purchase referral services to buy a car pay, on
average, two percent less than consumers who do not.(1) On
the other hand, many dealers argue that they have legitimate reasons for concern about
manufacturer Internet sales. They argue that franchise laws protect consumers against
unscrupulous manufacturers, and that Internet sales unfairly undermine their businesses by
letting online sellers "free ride" off the services provided by franchised
dealers.
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- Caskets: Because mark-ups on caskets can be
significant, online casket purchases potentially can save consumers substantial sums of
money. Additionally, online casket sellers also may be able to offer consumers a greater
variety of choices, such as individualized caskets. Some states, however, require that
casket purchases be made only through a licensed funeral director at a funeral home, in
order to protect consumers from fraud and abuse.
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- Online Legal Services: The
Internet has the potential to deliver legal services in at least two ways, each of which
raises its own set of issues. First, the Internet offers access to basic legal advice to
people who otherwise would not be willing or able to pay for legal services. For instance,
many companies are offering services like online wills at a relatively low cost, which
raises the issue of the unauthorized practice of law. Second, the Internet likely will
expand the existing practice of lawyers offering legal services to clients who are in
other jurisdictions, which raises the issue of multijurisdictional practice. The courts,
and the Bar as a whole, are just beginning to grapple with these issues.
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- Telemedicine and Online Pharmaceutical Sales: The Internet offers consumers potential cost savings and
greater access to specialized care. For example, online prescription drug purchases
potentially could lower prices, and telemedicine could allow patients to access portable
medical equipment and digital imaging technology even if they lack ready access to a
full-service hospital. On the other hand, online health care raises serious consumer
protection issues. Some medical professionals and regulators argue that online pharmacy
sales are particularly susceptible to abuse, and that patients might not have adequate
legal remedies against out-of-state doctors who practice telemedicine.
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- Auctions: Internet auctions have become a
cultural phenomenon, with auction sites attracting millions of participants around the
country. Some businesses have even started to use auction sites as an alternate means of
distributing their products. Some states, however, are considering whether to apply
existing licensing requirements designed for traditional auctioneers to these Web sites.
Such requirements could apply to both online auctioneers and others who sell online.
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- Real Estate / Mortgages / Financial Services: Consumers
can now receive many real estate and financial services online. A number of states,
however, have adopted regulations that may affect the provision of these services by
online, out-of-state firms. In several states, companies must maintain an in-state office
as a condition for licensing if the company makes, brokers, or services residential
mortgage loans. Many of these regulations are designed to protect consumers from
unscrupulous practices, but they may also have the secondary effect of insulating local
businesses from wider competition.
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- Retailing: E-commerce retail sales continue
to expand rapidly. For example, in the second quarter of 2002, retail e-commerce sales
increased 24.2 percent, up to $10.2 billion, from the second quarter of 2001.(2) Nonetheless, in some instances we have seen attempts to
limit e-retailing through conduct that raises antitrust issues, such as collective
pressure on suppliers to limit electronic sales to consumers. This type of conduct may
reflect legitimate business concern over free riding and channel conflict, but it may also
raise antitrust concerns.
Agenda
October 8
Transcript for October
8th [PDF 384KB] |
9:00-9:10
am: |
Remarks: Chairman Timothy J. Muris |
9:10-9:15 am: |
Remarks:
Representative Cliff Stearns, Chairman, U.S. House of Representatives
Subcommittee on Commerce, Trade, and Consumer Protection |
9:15-10:45 am: |
Overview: Legal and
Economic Perspectives
- Robert Atkinson ,Vice-President and Director of Technology and the New Economy
Project, Progressive Policy Institute
- Clint Bolick, Vice-President and National Director of State Chapters, Institute
for Justice
- Steven Calkins, Professor of Law, Wayne State University Law School
- Hon. Howard Metzenbaum, Chairman, Consumer Federation of America
- Robert Gertner, Professor of Economics and Strategy, University of Chicago,
Graduate School of Business
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11:00-11:10 am: |
Remarks:
Dr. Randall Kroszner, Member, White House Council of Economic
Advisers |
11:10-11:25 am: |
Remarks:
Jeff Jordan, Senior Vice-President & General
Manager, eBay Inc. |
11:30 am-1:00 pm: |
Overview: Industry
Perspectives
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2:00-3:45 pm: |
Wine Sales
(moderated by Commissioner Orson Swindle)
- Tracy Genesen, Legal Director, Coalition for Free Trade
- Hon. C. Boyden Gray, Outside Counsel, Wine & Spirits Wholesalers of America
- Steve Gross,
Director of State Relations, Wine Institute
- William H. Hurd, State Solicitor, Office of the Attorney General, Virginia
- Dan McFadden, Professor of Economics, Nobel Laureate in Economics, University
of California at Berkeley
- Irene Mead, Assistant
Attorney General, Head of Michigan's Liquor Control Division
- Murphy Painter, President, National Conference of State Liquor Administrators
- David Sloane, President, American Vintners Association
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4:00-5:30
pm: |
Cyber-Charter Schools
- John Bailey,
Director of the Office of Educational Technology, Department of Education
- Sue Collins, Chief Education Officer, Apex Learning
- Checker Finn,
President, Thomas B. Fordham Foundation
- Tom Gentzel, Executive Director, Pennsylvania School Boards Association
- Ron Packard, CEO and Founder,
K12
- Hon. Charles Zogby, Secretary of Education, Pennsylvania
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October 9
Transcript for October
9th [PDF 438KB] |
9:00-10:30 am: |
Contact Lenses
- Jonathan Coon, CEO, 1-800 CONTACTS, Inc.
- Dr. Pat Cummings, O.D.
President, American Optometric Association
- Paul Halpern, National Association of Optometrists and Opticians
- Morris Kleiner, Professor
of Labor Policy, University of Minnesota
- Gerald M. Ostrov, Company Group Chairman, J&J Visioncare, Johnson & Johnson
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10:40-10:45
am: |
Remarks:
Commissioner Thomas B. Leary |
10:45
am-12:15 pm: |
Automobiles
- Mark Cooper,
Research Director, Consumer Federation of America
- James Lust,
Chairman, Lust Chervrolet-Buick (former President of the National Automobile Dealers
Association)
- Fiona Scott Morton, Associate Professor of Private Enterprise and Management, Yale
University
- Scott Painter, Chairman, Built-to-Order, Inc.
- John Whatley, Vice-President and General Counsel, Alliance of Automobile
Manufacturers
- Bill Wolters, Executive Vice-President, Texas Automobile Dealers Association
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1:15-2:45 pm: |
Casket Sales
- Betty Brown,
National Casket Retailers Association
- Lisa Carlson, Executive Director, Funeral Consumers Alliance
- David Harrington, Associate Professor of Economics,
Claremont McKenna College and Kenyon College
- Mark Krause,
[Supplemental] Funeral
Director & Member, International Cemetery and Funeral Association
- Clark Neily,
Attorney, Institute for Justice
- Steven Sklar,
Director, Maryland Office of Cemetery Oversight
- Robert Vandenbergh, President, National Funeral Directors Association
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3:00-4:30 pm: |
Online Legal Services
- Alfred Carlton, President, American Bar Association
- Richard
Granat, CEO, MyLawyer.com
- James Johnston, Attorney and Legal Commentator
- George Jones,
President, District of Columbia Bar
- Tom Lammert, General Counsel, National Real Estate Information Services
- Catherine Lanctot, Professor, Villanova University School of Law
- Joyce Palomar, Professor, University of Oklahoma College of Law
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4:45-6:15 pm: |
Telemedicine and Online Pharmaceutical Sales
- Meredyth Andrus, Assistant Attorney General, Maryland
- Robert Barton, CFO, drugstore.com, inc.
- Carmen Catizone, Executive Director, National Association of Boards of Pharmacy
- Harriet Hellman, CPNP, Chair, Pharmaceutical Issues Task Force, American College of
Nurse Practitioners
- Stephen Parente, Assistant Professor, Carlson School of Management, University of
Minnesota
- Robert Waters, Outside Counsel, Center for Telemedicine Law
- Dr. Gary Winchester, M.D., Board Member, Florida State Board of Medicine
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October 10
Transcript for October
10th [PDF 335KB] |
9:00-10:30 am: |
Auctions
- Wynn
Arnold, Senior Assistant Attorney General, New Hamphsire
- Lawrence Ausubel, Professor
of Economics, University of Maryland
- Tod Cohen, Associate General Counsel, Global Policy, eBay
- Robert Hamilton, Executive Director, North Carolina Auctioneer Licensing Board
- Larry Theurer, President, National Auctioneer Association
- Norman Willoughby, Deputy Assistant Commissioner, Illinois Office of Banks and Real
Estate
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10:45
am-12:30 pm: |
Real Estate / Mortgages /
Financial Services
(moderated by Commissioner Mozelle W. Thompson)
- Lawrence Ausubel, Professor of Economics, University of Maryland
- Laura Binion, Senior Vice
President and General Counsel for CheckFree Corp.
- Jeremiah
S. Buckley, [Attachment] Goodwin Procter, LLP
Gen. Csl., Electronic Financial Services Council
- Russell Capper, [Supplimental]
CEO & President, e-Realty
- Eric Cunliffe, [Attachment] Senior Vice-President
& General Manager, Lendingtree.com
- Darren Ross,
Director of Electronic Commerce, Stewart Information Services Corporation
- Anthony M. Yezer, Professor of
Economics, George Washington University
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2:00-2:10 pm: |
Remarks:
Commissioner Sheila F. Anthony |
2:15-3:45 pm: |
Retailing
- David A. Balto, Partner, White & Case LLP
- Judith Chevalier, Professor of Finance and Economics, School of Management, Yale
University
- Janet L. McDavid, Partner, Hogan & Hartson L.L.P.
- Paul Misener, Vice-President Global Public Policy, Amazon.com
- Irving Scher,
Partner, Weil, Gotshal & Manges LLP
- Frances
Smith, Executive Director, Consumer Alert
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4:00-5:30 pm: |
Views from the States
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5:30-5:40 pm: |
Concluding Remarks: Ted Cruz, Director, Office of Policy Planning |
1. Fiona Scott Morton, Florian
Zettelmeyer, and Jorge Silva-Risso, Internet Car Retailing, 49 J. Indus. Econ.
501, 502 (2001).
2. United States Department of Commerce News, 2nd quarter
2002 release, Aug. 22, 2002, available at http://www.census.gov/mrts/www/current.html.
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