"'Big Tech Grim Reaper' Commissioner Khan: Surge in Consumer Fraud Is IT Companies' Responsibility"

▲Lina Khan, Chair of the U.S. Federal Trade Commission (FTC) [Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Lina Khan, chair of the U.S. Federal Trade Commission (FTC), known as the "big tech grim reaper," pointed to major information technology (IT) companies as the cause of the significant increase in fraud targeting Americans during the COVID-19 pandemic, the Wall Street Journal (WSJ) reported on the 28th (local time).

According to the report, Khan appeared before the House Energy and Commerce Committee for the first time since becoming FTC chair and stated, "Fraud today has surged because of digital platforms that tolerate or even promote such behavior."

Khan did not specify the names of the online platforms involved nor did she disclose what actions the FTC might take.

Before her appointment, Khan was known for her critical stance on big tech monopolies, even being called the "Amazon killer." Her 2017 law school thesis was titled "Amazon's Antitrust Paradox."

The WSJ pointed out that if she takes action against online platforms, she would have to overcome the legal hurdle of Section 230 of the Communications Decency Act.

Section 230 of the Communications Decency Act stipulates that platform companies such as Google, Twitter, and Facebook are not legally responsible for user-generated content.

Democratic members of the FTC have stated that they will focus on identifying algorithms used by major platform companies that could facilitate the spread of fraudulent activities.

Rather than chasing individual fraudsters, there is a need to monitor gatekeepers and those who profit from the spread of fraud.

The WSJ also reported that Chair Khan and Democratic commissioners believe there should be closer scrutiny of how platform companies misuse children's personal information.