The NPRM cites no empirical evidence supporting an inference that providers of Internet 

and Web services are more prone to engage in fraud than providers of other services to 

businesses.  Indeed, despite the enormous scale of the Internet economy, the NPRM cites only 

four cases in which the Commission has alleged fraud in the sale of  Web services,  and 

identifies no cases whatsoever involving fraud in the sale of  Internet services. 

68

  Measured 

against the sheer scale of business to business e commerce on the World Wide Web, these 

enforcement statistics do not reflect a uniquely pernicious problem with fraudulent telemarketing 

in the area of Internet and Web services.   Accordingly, this data does not justify the selective 

expansion of the TSR to encompass these industries.   

The FTC's proposed disparate treatment of Web and Internet service providers under the 

TSR will result in significant competitive harm.  For example, commercial cable modem service 

providers like Cox Business Services compete directly with telephone companies offering DSL 

services.  Although the proposed amended Rule would stultify the marketing communications of 

Cox Business Services, it would leave unfettered the telemarketing efforts of its principal 

competitors, the DSL companies that would continue to be insulated from the jurisdiction of the 

FTC by their status as common carriers.   

If the Commission truly intends to sweep into the TSR  any and all service relating to the 

World Wide Web,  then the proposed amended Rule also would embrace all forms of Internet 

advertising.  Commenting on the recent  explosion in online advertising,  former FTC Chairman 

Robert Pitofsky noted that online ad revenues in the United States had grown from less than 

68

See NPRM

, 67 Fed. Reg. 4492, 4531. 

23