Facebook wants to shift to a more “privacy-focused messaging and social networking platform,” blogged CEO Mark Zuckerberg Wednesday. Zuckerberg envisions a platform where communication shifts to private, encrypted services with data that remains secure and eventually disappears. “Private messaging, ephemeral stories, and small groups are by far the fastest growing areas of online communication,” Zuckerberg wrote, saying he wants the company to shift from a “town square” to more of a “living room.”

Industry representatives voiced frustration about e-commerce, seeking a more-streamlined filing system and crackdown on foreign sellers. A common complaint was lack of transparency from foreign companies when they sell through online markets, a Customs and Border Protection event was told Friday. The foreign e-commerce sellers bypass U.S. safety and testing regulations, disproportionately placing the “burden of enforcement” on the brand owners of the items, said Rebecca Mond, Toy Association vice president-federal government affairs. That leads to lapses in enforcement, she said. Cornelia Steinert, Canon Virginia senior manager-international trade, said there's “simply no visibility” for importers of e-commerce products, especially small shipments. “How do you know what they’re ordering?” she said. “A lot of times, you can’t tell where the products are being shipped from.” She wants improvements to CBP manifest filings. Footwear Distributors and Retailers of America CEO Matt Priest said one of the footwear industry’s biggest issues is “unauthorized third-party sellers” online. Priest suggested more communication between CBP and industry. “The prevalence of e-commerce has just been so difficult for our members to get their hands around” on enforcement issues, he said. That multiple filings are made to CBP and each foreign government agency involved in selling a product online is problematic, said Cindy Allen, FedEx Trade Network vice president-regulatory affairs and compliance.

Emerging technologies have “significant potential to assist older adults with successfully aging in place," via cognition, communication, social connectivity, personal mobility, transportation and access to healthcare, a White House task force reported Tuesday. Challenges include user adoption, system requirements, functionality, privacy and security. “Cutting-edge technologies hold significant promise for older Americans, enhancing their mobility and independence, strengthening ties to their communities, and keeping them healthy and safe,” said Director Kelvin Droegemeier of the Office of Science and Technology Policy, which issued the report. It recommends continued research and development. The National Science and Technology Council convened the task force from across federal agencies.

The FTC approved changes to two rules under the Gramm-Leach-Bliley Act. Safeguards rule revisions add more detailed requirements for what should be included in the comprehensive information security program the rule mandates for financial institutions. Commissioners Noah Phillips and Christine Wilson dissented, saying it’s “premature” and substitutes the FTC’s “judgment for a private firm’s governance decisions,” may take the commission in a direction that's “unwarranted,” may “have negative repercussions” and moves the rule away from its now-flexible approach. Privacy rule changes, OK'd 5-0, are to make that rule’s scope “clear on its face,” removing “examples of financial institutions that do not apply to motor vehicle dealers,” a release said. The rules also clarify which automotive dealers must provide annual privacy notices. Comments on both are due 60 days after Federal Register publication.

Sen. Shelley Moore Capito, R-W.Va., and state Gov. Jim Justice (R) hailed Facebook's Monday commitment to build a 275-mile-long fiber network segment in the state this year. It's part of a larger Facebook network to run from Ashburn, Virginia, to Columbus, Ohio. Capito addressed her concerns about broadband connectivity in the state during the Senate Commerce Committee's hearing last year with Facebook CEO Mark Zuckerberg (see 1806050044).

Thales must divest its General Purpose Hardware Security Module business to resolve competition concerns and complete its $5.6 billion acquisition of Gemalto, DOJ announced Thursday evening. GP HSMs are “secure encryption processing and key management devices” most frequently used as components of complex encryption systems used by industry and government to secure sensitive data. Thales and Gemalto are the “world’s leading providers of GP HSMs and are significant direct” U.S. competitors, DOJ said. Friday, Thales didn’t comment.

Democratic lawmakers Thursday introduced a resolution supporting what they call “guidelines for the ethical development” of artificial intelligence. Sponsored by Michigan’s Brenda Lawrence and California’s Ro Khanna, House Res.153 supports privacy of personal data, transparency, accountability and oversight of automated decision-making, and “helping to empower” the underrepresented. “To realize the full potential of AI, we must ensure that government, industry, academia, and organizations dedicated to protecting privacy, civil rights, and liberties work together to develop AI in an ethical and transparent manner,” said Lawrence, calling the resolution “the first step.” Congress must “ensure that technology is implemented with thoughtful guidance given the shifting scope of privacy protections in the digital economy,” said Khanna. BSA|The Software Alliance, Future of Life Institute, IBM and Facebook applauded. BSA said it's pleased the resolution tracked closely with its own guidelines. Co-sponsors are Florida's Darren Soto and Charlie Crist, Illinois' Daniel Lipinski and Robin Kelly, Michigan's Haley Stevens, Washington's Suzan DelBene and New York's Grace Meng, all Democrats. The White House Office of Science and Technology Policy Thursday tweeted that "AI technology should develop in America, with our values, interests, and priorities."

The FTC's creating a tech competition task force indicates the agency (see 1902260052) could take enforcement action against one or more companies in the next year or two, Cowen’s Paul Gallant wrote investors Tuesday. Google, Amazon, Facebook and Apple are potential targets for past and future deals, the analyst said. The FTC decision isn't surprising, given “anti-monopoly” Democrats who view big tech firms as “suspect,” said Information Technology and Innovation Foundation President Rob Atkinson: Hopefully, the agency won’t be “swayed by populist furor and instead confine itself to careful, objective analysis based on the reality that many technology markets tend toward concentration, and that this concentration is usually pro-consumer and pro-innovation.” The task force should find "the courage to re-consider some of the anti-competitive tech mergers of the last 10 years; tech is in need of a genuine shakeup,” Columbia University law professor Tim Wu tweeted.

Owners of musical.ly, a video social networking app now called TikTok, reached a record $5.7 million settlement with the FTC over claims the company illegally collected children’s personal data, the agency announced Wednesday. It’s the largest civil penalty the FTC, whose members unanimously approved, has collected under the Children’s Online Privacy Protection Act. Musical.ly failed to seek parental consent for collecting names, email addresses and other data from users younger than 13, the FTC alleged in a complaint filed by DOJ. “We take enforcement of COPPA very seriously, and we will not tolerate companies that flagrantly ignore the law,” Chairman Joe Simons said in a statement. “These practices reflected the company’s willingness to pursue growth even at the expense of endangering children,” said Commissioners Rohit Chopra and Rebecca Kelly Slaughter. They said executives should face more accountability in future cases. The company has implemented changes that now direct TikTok users into “age-appropriate” app sections, it said: “The new environment for younger users does not permit the sharing of personal information, and it puts extensive limitations on content and user interaction.” Sen. Ed Markey, D-Mass., urged future “higher monetary penalties that will actually [incentivize] COPPA compliance.” More than 200 million worldwide users, 65 million registered in the U.S., downloaded the app. Accounts were publicly available by default, the FTC said, and public reports show adults contacted children through the app. The app includes a feature that lets users discover other users within a 50-mile radius. App operators received thousands of complaints from parents that their underage children had accounts, the FTC said. “This case should put tech companies on notice that continued disregard for COPPA will result in penalties and consumer mistrust that can seriously impact their business,” said Common Sense Media CEO Jim Steyer.

The FCC chief information officer's role in decision-making for annual and multiyear planning, programming, budgeting and execution decisions related to IT and in hiring personnel with IT responsibilities is now federal law. The rule was in Tuesday's Federal Register, incorporating statutory update to CIO authorities into organizational rules. The agency said this amendment reflected a Ray Baum's Act mandate giving the CIO enhanced responsibilities.