U.S. broadband industry accused in 'fake' net neutrality comments (updated)

Fluent

06/05/2021 16:25

(Adds details on New York findings and company involvement,
background on FCC repeal)
    By David Shepardson
    WASHINGTON, May 6 (Reuters) - The broadband industry in 2017
funded a campaign that generated millions of fake comments to
create the impression of grassroots opposition to net neutrality
rules while the U.S. Federal Communications Commission
considered repealing the policy, New York state's attorney
general said on Thursday.
    Attorney General Letitia James, a Democrat, said her office
reached agreements with three companies involved in the scheme -
Fluent Inc  FLNT.O , Opt-Intelligence Inc and React2Media Inc -
imposing penalties of $4.4 million and requiring them to adopt
comprehensive reforms in future advocacy campaigns.
    Her office identified the companies as the lead generators
responsible for millions of the fake comments submitted in the
FCC's net neutrality proceeding. Federal agencies often solicit
public comments on key policy issues before taking action.
    The New York investigation showed that broadband industry
players spent $4.2 million to generate and submit more than 8.5
million fake comments to the FCC "to create the appearance of
widespread grassroots opposition to existing net neutrality
rules." 
    The investigation found that nearly 18 million of the more
than 22 million public comments that the FCC received both for
and against net neutrality were fake.
    Fluent, Opt-Intelligence and React2Media did not immediately
respond to requests for comment.
    Fluent agreed to pay $3.7 million, according to the attorney
general's office. It said Fluent provided the broadband industry
with more than 5 million digital signatures for net neutrality
comments.
    The three companies also worked on more than 100 other
unrelated campaigns to influence regulatory agencies and public
officials and generated fake comments for other rulemaking
proceedings, the investigation found.
    James said investigations into others that engaged in fraud
are ongoing.
    The FCC under Democratic former President Barack Obama
adopted landmark net neutrality rules in 2015 that barred
internet service providers from blocking or throttling traffic 
or offering paid fast lanes. The rules, opposed by the broadband
industry, were overturned by the FCC under President Donald
Trump in December 2017.
    Supporters of the net neutrality rules argued that the
protections ensured a free and open internet. Broadband and
telecoms trade groups argued that the rules would discourage
investment. 
    Acting FCC Chairwoman Jessica Rosenworcel, a Democrat, voted
against the repeal. She did not immediately respond to a request
for comment.
    New York's investigation also found the FCC received another
9.3 million fake comments supporting net neutrality that used
fictitious identities. Most of these comments were submitted by
a 19-year-old college student using automated software, it
found.
    In mid-January 2017, several days before Trump was
inaugurated, a document was circulated among a small group of
senior broadband industry executives "laying out a plan to
overturn the FCC's existing net neutrality regulations,"
according to James' office.
    The document proposed a campaign to provide support for the
FCC's expected net neutrality repeal, it said.
    The campaign was run through a nonprofit organization funded
by the broadband industry called Broadband for America made up
of senior broadband company and trade group officials, it said.
Documents cited in the investigation said the public comments
would give the FCC's Republican chairman at the time, Ajit Pai.
"volume and intellectual cover" for the repeal. 
    Pai declined to comment.

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 (Reporting by David Shepardson; Editing by Will Dunham and
Chizu Nomiyama)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))