Jon Leibowitz
Encyclopedia
Jon Leibowitz is the Chairman of the Federal Trade Commission
(FTC), an independent agency of the United States Government. He was sworn in as a Commissioner on September 3, 2004, and designated Chairman on March 2, 2009 by President Barack H. Obama.
In joining the Commission, Leibowitz resumed a long career of public service. He was the Democratic Chief Counsel and Staff Director for the U.S. Senate Antitrust Subcommittee
(1997–2000), where he focused on competition policy and telecommunications matters and was known for developing bipartisan consensus. He served as Chief Counsel and Staff Director for the Senate Subcommittee on Terrorism and Technology
from 1995 to 1996 and the Senate Subcommittee on Juvenile Justice (1991–1994). In addition, he served as Chief Counsel to Senator Herb Kohl
(1989–2000) and worked for Senator Paul Simon
(1986–1987). Leibowitz was the Motion Picture Association of America
's Vice President for Congressional Affairs
(2000–2004), and an attorney
in private practice
in Washington, D.C.
(1984–1986).
in American History (1980). He graduated from the New York University School of Law
in 1984. He is a member of the District of Columbia Bar.
During his tenure at the FTC, Leibowitz has dedicated himself to a variety of competition and consumer protection
issues.
Bloomberg Businessweek named Leibowitz a "Power Broker" in 2011.
He is married to Washington Post
journalist Ruth Marcus
. The couple have two daughters.
The Chairman and the Commission have aggressively worked at stopping pay-for-delay patent settlements in the pharmaceutical industry. These are deals in which a brand-name drug firm pays its potential generic drug
into the market. As Leibowitz explained, the practice results not only in windfalls for both companies—sometimes of more than a billion dollars—but also in higher drug prices for consumers. Leibowitz has published articles on this issue and advocates bringing cases against firms that engage in these practices.
According to a January 2010 FTC Staff Study titled Pay-for-Delay: How Drug Company Pay-Offs Cost Consumers Billions, the cost to consumers from pay-for-delay deals is an estimated $3.5 billion per year – or $35 billion over 10 years. The Commission recommended that Congress should pass legislation to protect consumers from such anticompetitive agreements.
An FTC study released in October 2011 revealed that some pharmaceutical companies continued to engage in pay-for-delay deals in FY 2011. The findings prompted Leibowitz to ask Congress’ “Super Committee” to restrict these deals, stating that it could help reduce the deficit and lower the nation’s healthcare costs.
The agency released a preliminary staff report December 1, 2010 titled, Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers. With regard to consumer’s online privacy, Leibowitz stated: “The FTC wants to help ensure that the growing, changing, thriving information marketplace is built on a framework that promotes privacy, transparency, business innovation and consumer choice. We believe that’s what most Americans want as well.”
Also, the FTC proposed revisions to the Children’s Online Privacy Protection Act (COPPA) Rule in September 2011 and is seeking public comments. Leibowitz said the revisions were in response to the rapid changes in technology. “We want to ensure that the COPPA Rule is effective in helping parents protect their children online, without unnecessarily burdening online businesses. We look forward to the continuing thoughtful input from industry, children’s advocates, and other stakeholders as we work to update the Rule.”
During an October 2011 speech about protecting online consumer privacy while ensuring an internet that generates the free content we have all come to expect and enjoy, Leibowitz coined the term “cyberazzi.” He likened invisible online data collection practices to the methods of the paparazzi, who follow celebrities around and photograph them without their permission. “A host of invisible cyberazzi – cookies and other data catchers – follow us as we browse, reporting our every stop and action to marketing firms that, in turn, collect an astonishingly complete profile of online behavior,” said Leibowitz.
Under Leibowitz’ guidance in August 2010 the Commission settled with Intel to restore competition and innovation that was lost as a result of Intel’s alleged anticompetitive actions. In May 2010, the FTC closed its high-profile investigation of Google’s proposed acquisition of AdMob, after a long investigation, concluding that it was unlikely to harm competition in the emerging mobile advertising market, citing Apple’s move to launch a competing mobile ad network.
As a Commissioner, Leibowitz was particularly involved in various Internet issues, from fighting spam
and spyware
to creating effective guidelines for online behavioral targeting
(the practice of collecting Internet users’ unique browsing history to target advertising), to ensuring that website privacy policies are clear and accessible to consumers.
Leibowitz has urged the Commission to “name names” of advertisers who paid to advertise through so-called nuisance adware
, software that displays or downloads advertisements on consumers’ computers without their consent. Leibowitz has also advocated for balanced “Net Neutrality” rules and for the right of municipalities to offer broadband to consumers free from restrictive state laws.
and ensure that only healthier foods and beverages are marketed to America’s children. He has also advocated continued review of entertainment industry marketing practices to prevent children from being exposed to inappropriate content. The Commission has completed five reports on this topic since 2000.
Leibowitz was the one commissioner to dissent
on a 2007 FTC Report on Spring/Summer 2006 Nationwide Gasoline Price Increases, which found that the increase could be explained by market forces. Leibowitz suggested that the plausible explanation for the increase in gasoline prices, that the Commission found, was not necessarily the only explanation. “The question you ask determines the answer you get,” he wrote, “whatever theoretical justifications exist don’t exclude the real world threat that there was profiteering at the expense of consumers." Similarly, in an earlier report investigating accusations of price gouging
by oil companies after Hurricane Katrina, Leibowitz wrote separately to note that a handful of refiners studied displayed “troubling” conduct.
as a way to stop anticompetitive behavior that can no longer be reached under prevailing judicial interpretation of the antitrust laws. Leibowitz argued that in founding the FTC, “Congress intended to create an agency with authority that extended beyond the limits of the Sherman Antitrust Act
.” Leibowitz has supported the use of Section 5 of the FTC Act (“unfair methods of competition”) beyond the Sherman Act in standard setting cases and in a case involving a failed agreement to fix prices. With Commissioner J. Thomas Rosch
(a Republican
) and Commissioner Pamela Jones Harbour
(an Independent)
, Leibowitz recently criticized a Department of Justice Report on monopolization, saying that DoJ’s approach placed “a thumb on the scales in favor of firms with monopoly
or near-monopoly power and against other equally significant stakeholders."
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(FTC), an independent agency of the United States Government. He was sworn in as a Commissioner on September 3, 2004, and designated Chairman on March 2, 2009 by President Barack H. Obama.
In joining the Commission, Leibowitz resumed a long career of public service. He was the Democratic Chief Counsel and Staff Director for the U.S. Senate Antitrust Subcommittee
United States Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights
The Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights is one of seven subcommittees within the Senate Judiciary Committee.-Jurisdiction:...
(1997–2000), where he focused on competition policy and telecommunications matters and was known for developing bipartisan consensus. He served as Chief Counsel and Staff Director for the Senate Subcommittee on Terrorism and Technology
United States Senate Judiciary Subcommittee on Terrorism, Technology and Homeland Security
The United States Senate Judiciary Subcommittee on Terrorism and Homeland Security is one of seven subcommittees within the Senate Judiciary Committee.-Jurisdiction:...
from 1995 to 1996 and the Senate Subcommittee on Juvenile Justice (1991–1994). In addition, he served as Chief Counsel to Senator Herb Kohl
Herb Kohl
Herbert H. "Herb" Kohl is the senior U.S. Senator from Wisconsin and a member of the Democratic Party. He is also a philanthropist and the owner of the Milwaukee Bucks National Basketball Association team...
(1989–2000) and worked for Senator Paul Simon
Paul Simon
Paul Frederic Simon is an American singer-songwriter and guitarist.Simon is best known for his success, beginning in 1965, as part of the duo Simon & Garfunkel, with musical partner Art Garfunkel. Simon wrote most of the pair's songs, including three that reached number one on the US singles...
(1986–1987). Leibowitz was the Motion Picture Association of America
Motion Picture Association of America
The Motion Picture Association of America, Inc. , originally the Motion Picture Producers and Distributors of America , was founded in 1922 and is designed to advance the business interests of its members...
's Vice President for Congressional Affairs
Lobbying in the United States
Lobbying in the United States targets the United States Senate, the United States House of Representatives, and state legislatures. Lobbyists may also represent their clients' or organizations' interests in dealings with federal, state, or local executive branch agencies or the courts. Lobby...
(2000–2004), and an attorney
Attorney at law
An attorney at law in the United States is a practitioner in a court of law who is legally qualified to prosecute and defend actions in such court on the retainer of clients. Alternative terms include counselor and lawyer...
in private practice
Practice of law
In its most general sense, the practice of law involves giving legal advice to clients, drafting legal documents for clients, and representing clients in legal negotiations and court proceedings such as lawsuits, and is applied to the professional services of a lawyer or attorney at law, barrister,...
in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
(1984–1986).
Life and career
Leibowitz is a Phi Beta Kappa graduate of the University of Wisconsin with a B.A.Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
in American History (1980). He graduated from the New York University School of Law
New York University School of Law
The New York University School of Law is the law school of New York University. Established in 1835, the school offers the J.D., LL.M., and J.S.D. degrees in law, and is located in Greenwich Village, in the New York City borough of Manhattan....
in 1984. He is a member of the District of Columbia Bar.
During his tenure at the FTC, Leibowitz has dedicated himself to a variety of competition and consumer protection
Consumer protection
Consumer protection laws designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional...
issues.
Bloomberg Businessweek named Leibowitz a "Power Broker" in 2011.
He is married to Washington Post
The Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...
journalist Ruth Marcus
Ruth Marcus (journalist)
Ruth Allyn Marcus is a journalist who currently writes an op-ed column for the Washington Post. In March 2007, she was a finalist for a Pulitzer Prize in commentary...
. The couple have two daughters.
Protecting America's Consumers in the Financial Downturn
Since becoming Chairman, the FTC has filed more than 40 law enforcement actions to stop scams that prey on consumers suffering from the economic downturn, such as foreclosure “rescue” and mortgage modification schemes, phony debt-reduction and credit-repair services, bogus government grant opportunities, job scams, and get-rich quick frauds. The Commission redoubled its efforts to put a stop to job schemes when U.S. unemployment reached nearly 10 percent in early 2010. In one of the largest judgments imposed in an FTC case, Countrywide settled for $108 million with the FTC in June 2010 for collecting excessive fees from cash-strapped borrowers who were struggling to keep their homes. In 2011, the FTC mailed 450,177 refund checks to homeowners who were allegedly overcharged by Countrywide.Healthcare
Leibowitz has been active in preserving competition in the health care and pharmaceutical sectors. In particular, he has been a critic of “pay-for-delay” settlements in the pharmaceutical industry.The Chairman and the Commission have aggressively worked at stopping pay-for-delay patent settlements in the pharmaceutical industry. These are deals in which a brand-name drug firm pays its potential generic drug
Generic drug
A generic drug is a drug defined as "a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use." It has also been defined as a term referring to any drug marketed under its...
into the market. As Leibowitz explained, the practice results not only in windfalls for both companies—sometimes of more than a billion dollars—but also in higher drug prices for consumers. Leibowitz has published articles on this issue and advocates bringing cases against firms that engage in these practices.
According to a January 2010 FTC Staff Study titled Pay-for-Delay: How Drug Company Pay-Offs Cost Consumers Billions, the cost to consumers from pay-for-delay deals is an estimated $3.5 billion per year – or $35 billion over 10 years. The Commission recommended that Congress should pass legislation to protect consumers from such anticompetitive agreements.
An FTC study released in October 2011 revealed that some pharmaceutical companies continued to engage in pay-for-delay deals in FY 2011. The findings prompted Leibowitz to ask Congress’ “Super Committee” to restrict these deals, stating that it could help reduce the deficit and lower the nation’s healthcare costs.
Internet, Telecom and Technology
During Leibowitz’ tenure, the agency remains focused on promoting consumer protection, competition and innovation in technology sectors, through both policy initiatives and law enforcement.The agency released a preliminary staff report December 1, 2010 titled, Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers. With regard to consumer’s online privacy, Leibowitz stated: “The FTC wants to help ensure that the growing, changing, thriving information marketplace is built on a framework that promotes privacy, transparency, business innovation and consumer choice. We believe that’s what most Americans want as well.”
Also, the FTC proposed revisions to the Children’s Online Privacy Protection Act (COPPA) Rule in September 2011 and is seeking public comments. Leibowitz said the revisions were in response to the rapid changes in technology. “We want to ensure that the COPPA Rule is effective in helping parents protect their children online, without unnecessarily burdening online businesses. We look forward to the continuing thoughtful input from industry, children’s advocates, and other stakeholders as we work to update the Rule.”
During an October 2011 speech about protecting online consumer privacy while ensuring an internet that generates the free content we have all come to expect and enjoy, Leibowitz coined the term “cyberazzi.” He likened invisible online data collection practices to the methods of the paparazzi, who follow celebrities around and photograph them without their permission. “A host of invisible cyberazzi – cookies and other data catchers – follow us as we browse, reporting our every stop and action to marketing firms that, in turn, collect an astonishingly complete profile of online behavior,” said Leibowitz.
Under Leibowitz’ guidance in August 2010 the Commission settled with Intel to restore competition and innovation that was lost as a result of Intel’s alleged anticompetitive actions. In May 2010, the FTC closed its high-profile investigation of Google’s proposed acquisition of AdMob, after a long investigation, concluding that it was unlikely to harm competition in the emerging mobile advertising market, citing Apple’s move to launch a competing mobile ad network.
As a Commissioner, Leibowitz was particularly involved in various Internet issues, from fighting spam
E-mail spam
Email spam, also known as junk email or unsolicited bulk email , is a subset of spam that involves nearly identical messages sent to numerous recipients by email. Definitions of spam usually include the aspects that email is unsolicited and sent in bulk. One subset of UBE is UCE...
and spyware
Spyware
Spyware is a type of malware that can be installed on computers, and which collects small pieces of information about users without their knowledge. The presence of spyware is typically hidden from the user, and can be difficult to detect. Typically, spyware is secretly installed on the user's...
to creating effective guidelines for online behavioral targeting
Behavioral targeting
Behavioral targeting is a technique used by online publishers and advertisers to increase the effectiveness of their campaigns.Behavioral targeting uses information collected on an individual's web-browsing behavior, such as the pages they have visited or the searches they have made, to select...
(the practice of collecting Internet users’ unique browsing history to target advertising), to ensuring that website privacy policies are clear and accessible to consumers.
Leibowitz has urged the Commission to “name names” of advertisers who paid to advertise through so-called nuisance adware
Adware
Adware, or advertising-supported software, is any software package which automatically plays, displays, or downloads advertisements to a computer. These advertisements can be in the form of a pop-up. They may also be in the user interface of the software or on a screen presented to the user during...
, software that displays or downloads advertisements on consumers’ computers without their consent. Leibowitz has also advocated for balanced “Net Neutrality” rules and for the right of municipalities to offer broadband to consumers free from restrictive state laws.
Advertising and Marketing to Children
Leibowitz has called for strong industry self-regulatory initiatives to help combat childhood obesityChildhood obesity
Childhood obesity is a condition where excess body fat negatively affects a child's health or wellbeing. As methods to determine body fat directly are difficult, the diagnosis of obesity is often based on BMI. Due to the rising prevalence of obesity in children and its many adverse health effects...
and ensure that only healthier foods and beverages are marketed to America’s children. He has also advocated continued review of entertainment industry marketing practices to prevent children from being exposed to inappropriate content. The Commission has completed five reports on this topic since 2000.
Energy
The FTC monitors competition in energy markets and released its latest staff report on gasoline prices in September 2011. Leibowitz said the American people need to understand why they often pay so much for gasoline. “Our report spells out the factors that determine what consumers pay at the pump, and why gas prices seem to ‘rocket up’ but feather down.”Leibowitz was the one commissioner to dissent
Political dissent
Political dissent refers to any expression designed to convey dissatisfaction with or opposition to the policies of a governing body. Such expression may take forms from vocal disagreement to civil disobedience to the use of violence. Historically, repressive governments have sought to punish...
on a 2007 FTC Report on Spring/Summer 2006 Nationwide Gasoline Price Increases, which found that the increase could be explained by market forces. Leibowitz suggested that the plausible explanation for the increase in gasoline prices, that the Commission found, was not necessarily the only explanation. “The question you ask determines the answer you get,” he wrote, “whatever theoretical justifications exist don’t exclude the real world threat that there was profiteering at the expense of consumers." Similarly, in an earlier report investigating accusations of price gouging
Price gouging
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies...
by oil companies after Hurricane Katrina, Leibowitz wrote separately to note that a handful of refiners studied displayed “troubling” conduct.
Competition Enforcement Beyond the Sherman Act
Leibowitz has advocated for a re-invigorated enforcement of the FTC ActFederal Trade Commission Act
The Federal Trade Commission Act of 1914 started the Federal Trade Commission , a bipartisan body of five members appointed by the president of the United States for seven-year terms. This commission was authorized to issue “cease and desist” orders to large corporations to curb unfair trade...
as a way to stop anticompetitive behavior that can no longer be reached under prevailing judicial interpretation of the antitrust laws. Leibowitz argued that in founding the FTC, “Congress intended to create an agency with authority that extended beyond the limits of the Sherman Antitrust Act
Sherman Antitrust Act
The Sherman Antitrust Act requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of violating the Act. It was the first Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by...
.” Leibowitz has supported the use of Section 5 of the FTC Act (“unfair methods of competition”) beyond the Sherman Act in standard setting cases and in a case involving a failed agreement to fix prices. With Commissioner J. Thomas Rosch
J. Thomas Rosch
J. Thomas Rosch was sworn in as a Commissioner of the United States Federal Trade Commission on January 5, 2006, to a term that expires in September 2012....
(a Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
) and Commissioner Pamela Jones Harbour
Pamela Jones Harbour
Pamela Jones Harbour, born in Albany, New York on July 15, 1959, was a former commissioner of the Federal Trade Commission, a department of the United States Government. She was sworn in on August 4, 2003, to a seven year term that expired September 2009. She joined the International Law Firm of...
(an Independent)
Independent (politician)
In politics, an independent or non-party politician is an individual not affiliated to any political party. Independents may hold a centrist viewpoint between those of major political parties, a viewpoint more extreme than any major party, or they may have a viewpoint based on issues that they do...
, Leibowitz recently criticized a Department of Justice Report on monopolization, saying that DoJ’s approach placed “a thumb on the scales in favor of firms with monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
or near-monopoly power and against other equally significant stakeholders."