FCC Has Taken Actions to Update Its Data Collection and Enforcement Processes

		FCC Implemented a New Enforcement Data System and Consumer Informal Complaint Portal

FCC recently improved the collection of data for its enforcement program  by implementing a new enforcement data system and consumer informal  complaint portal. Regardless of whether a complaint initiates an  enforcement case, FCC officials have access to the information in the  consumer complaint portal and officials stated that they can use this data  to help identify trends and determine whether to review a particular  company or practice. As of January 2017, FCC had closed 11  of 24 field offices (see fig. FCC officials also told us that they are taking steps to use the anticipated  cost savings from the field office reorganization to invest in training,  equipment, and technology updates that will improve efficiency. Given the recent changes, it is too early to determine the impact these  actions will have on enforcement efforts. Our review of FCC’s annual performance report found that it includes  descriptions of enforcement actions taken against companies, but does  not include quantified performance measures. FCC officials stated that  narrative examples, rather than quantified goals and related measures,  were the most appropriate way to report on FCC’s efforts to help  consumers and protect the public through its enforcement program. However, the Enforcement Bureau’s  new database—EBATS—described earlier in this report, has the data that  FCC could use to help establish and report on objective, measurable, and  quantifiable performance goals and related measures. Without  developing meaningful, quantifiable goals and related measures for the  enforcement program, FCC (1) lacks important tools for assessing and  reporting on the progress of its enforcement program and determining  whether changes should be made to improve performance, and (2) may  be missing an opportunity to help promote transparency about its  program and support congressional oversight. Selected Stakeholders Affirmed the Importance of FCC’s Enforcement but Cited Concerns about the Agency’s Enforcement Process and Communication Efforts Most Stakeholders Stated FCC’s Enforcement Is Important for Deterring Violations

We interviewed stakeholders with a wide range of perspectives however  most agreed that FCC’s enforcement is important for deterring violations  of federal statutes and FCC regulations. Lack of Transparency: When asked about their perception regarding the  transparency of the enforcement process 16 of the 22 stakeholders we  interviewed expressed concern that the enforcement process was not  transparent. When asked about the  apparent increase in proposed fines, FCC officials acknowledged fines  have increased. Instead, FCC  tailors the extent of its communications to stakeholders on a case-by- case basis. For example, FCC does  not publish an enforcement manual or similar overall policy document on  its website outlining their enforcement policies and processes. Clear communication strategies are important to promoting transparency  particularly in the case of enforcement activities. However, the extent to which FCC’s  Enforcement Bureau is achieving its mission of protecting consumers,  promoting competition, ensuring responsible use of the public airwaves,  and addressing risks to public safety is difficult to determine because  FCC has not developed performance indicators, targets, and timeframes  that would enable a meaningful assessment of its enforcement program. (Recommendation 1)
The Chairman of the FCC should establish, and make publically  available, a communications strategy outlining the agency’s  enforcement program for external stakeholders, to improve  engagement with the telecommunications community on the  purposes, objectives, and processes the Enforcement Bureau  employs to achieve its mission. Appendix I: Objectives, Scope, and Methodology

This report addresses (1) actions taken by FCC in the last 5 years to  update its enforcement program; (2) performance goals and measures for  FCC’s enforcement program; and (3) selected stakeholders’ views on  FCC’s enforcement program and FCC’s communication with these  stakeholders. To describe what actions FCC has taken in the last five years (calendar  years 2012 through 2016) to update its enforcement program we  reviewed FCC documentation, such as policies and reports related to  internal improvement efforts. In addition, we interviewed FCC officials  from the Enforcement Bureau, Consumer and Government Affairs  Bureau, as well as the Office of Managing Director. To determine stakeholder views on FCC’s enforcement program we  interviewed a non-generalizable sample of 22 stakeholders who were  knowledgeable of the Enforcement Bureau and the communications  industry.
Why GAO Did This Study

FCC's Enforcement Bureau is primarily responsible for ensuring the telecommunications industry's compliance with federal statutes and the Commission rules and orders designed to protect consumers, ensure public safety, and encourage competition. Some industry stakeholders have raised questions about the transparency and fairness of the Enforcement Bureau. GAO was asked to review FCC's management of its enforcement program.
In this report, GAO addresses: (1) actions FCC has taken in the last 5 years to update its enforcement program, (2) FCC's enforcement performance goals and measures, and (3) selected stakeholders' views on FCC's enforcement program and external communications. GAO reviewed FCC's enforcement policies and procedures; analyzed FCC's performance measures and spoke with officials of similarly sized independent agencies with enforcement missions; and interviewed FCC officials and 22 stakeholders from public and private organizations who were knowledgeable of the Enforcement Bureau and the communications industry.

What GAO Found

The Federal Communications Commission (FCC) has taken actions in the last 5 years to update its enforcement data collection and processes. In 2012, FCC implemented a new enforcement data system, which combined five previously separate databases and contains pertinent information related to each enforcement case. In 2014, FCC launched a new consumer complaints portal that FCC officials can use to identify trends and determine whether to investigate a particular company or practice. FCC also updated its internal enforcement program guidance, which includes case prioritization policies as well as timeliness goals for case resolution. Lastly, FCC completed its reorganization of the Enforcement Bureau's field office division in January 2017, closing 11 of 24 field offices and decreasing personnel from 108 to 54. FCC officials stated they do not anticipate a decline in enforcement activity because FCC is taking steps to use the anticipated annual cost savings of $9 to $10 million from the reorganization to invest in training, equipment, and technology that will improve efficiency. Given the recent changes, it is too early to determine the impact these actions will have on enforcement efforts.
FCC has not quantified most of its enforcement performance goals and measures. FCC officials told GAO that in 2009 the Chairman's Office decided that narrative examples, rather than quantifiable goals and related measures, were the most appropriate way to report on the enforcement program. For example, FCC's 2016 Annual Performance Report describes details of settlements or fines levied without reporting such goals or measures. Although such metrics can be difficult to develop, GAO found that other enforcement agencies report quantified performance goals and related measures and that FCC has the data it would need to develop such goals and measures. Without meaningful program performance goals and measures, FCC lacks important tools for assessing and reporting on the progress of its enforcement efforts and determining whether it should make changes to its program. FCC also may be missing an opportunity to help promote transparency and support congressional oversight by clearly communicating enforcement priorities.
Most of the selected stakeholders GAO interviewed affirmed the importance of enforcement, but cited concerns about FCC's current enforcement process and communication efforts with stakeholders. Fourteen of 22 selected stakeholders said enforcement is important for deterring violations of federal statutes and FCC rules. However, 17 of 22 also expressed concerns regarding the transparency or fairness of the enforcement process or regarding FCC's emphasis on generating publicity by proposing high dollar fines for potential violators. FCC does not have a formal communications strategy that outlines its enforcement purposes and processes. Instead, FCC tailors the extent of its communications to stakeholders on a case-by-case basis. FCC officials told GAO that information about the enforcement process is sensitive and could undermine their cases. However, leading practices on enforcement highlight the importance of disclosing agency enforcement processes, including how to challenge and appeal conclusions, as a way to foster fair and consistent enforcement. Increased communication from FCC could improve transparency and stakeholder perceptions of FCC enforcement actions.

What GAO Recommends

FCC should establish and publish: (1) quantifiable performance goals and related measures for its enforcement program; and (2) a communications strategy outlining its enforcement program for external stakeholders. FCC concurred with the recommendations.