The Internet Law Resource Center™ is the complete information solution for practitioners in cyberlaw. Follow the latest developments on ICANN’s gTLD program, keyword advertising, online privacy,...
Nov. 17 — Reputation rating systems may reduce the need for consumer protection regulation of the sharing economy, the Federal Trade Commission said in a report released Nov. 17.
Sharing economy platforms such as Uber Technologies Inc. and Airbnb Inc. have systems that allow users to give feedback on the quality of goods and services they receive. Using such rating systems, consumers and providers can access information about the person or service with whom they are dealing, the FTC said in a report on the issues facing sharing economy platforms, participants and regulators.
The report underscores the challenge lawmakers face in deciding whether and how to regulate the growing sector, which is expected to generate $335 billion by 2025, according to a study by PricewaterhouseCoopers.
“It is important to allow competition and innovation to continue to flourish, while at the same time ensuring that consumers using these online and app-enabled platforms are adequately protected,” FTC Chairwoman Edith Ramirez said in a statement.
The FTC said sharing economy platforms generally have strong incentives to provide rating systems for their customers. Rating systems promote confidence in transactions between buyers and sellers and increase profitability, the agency said. It cited evidence that such systems have helped to spur the sharing economy’s tremendous growth.
The commission also said, however, that platforms may have less of an incentive to address the impacts on third parties, such as pedestrians and motorists who face risks from Uber drivers. Regulators “may be less able to rely on platform actions to address those concerns,” the FTC said.
To contact the reporter on this story: Alexis Kramer in Washington at aKramer@bna.com
To contact the editor responsible for this story: Keith Perine at email@example.com
Full text of the report is available at http://src.bna.com/j9T.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)