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Forcing TikTok’s divestiture from the CCP is both reasonable and necessary

Washington, D.C. – Yesterday, a bipartisan group of US House legislators introduced a bill that would force ByteDance Ltd. to sell its US version of TikTok or face massive fines and federal investigations. This would have big ramifications for the video-sharing app, which is estimated to have over 150 million users in the US.

In practice, HR7521 designates the popular social media application TikTok as a “foreign adversary controlled application,” invoking the government’s ability to force the firm into new ownership by any private, legal entity in the United States —  a full forced divestiture.

Yaël Ossowski, deputy director of the consumer advocacy group, Consumer Choice Center, responded:

“In recent years, the default mode for the federal government has been to wage a regulatory war against American tech companies, all the while leaving the Chinese Communist Party-linked app TikTok to grow uninhibited,” said Ossowski. “While consumers generally do not want wholesale bans on popular tech, considering the unique privacy and security concerns implicit in TikTok’s ownership structure as well as its accountability and relationship to the CCP, the solution of a forced divestiture is both appropriate and necessary.”

Reports have already revealed that European TikTok users can, and have, had their data accessed by company officials in Beijing. The same goes for US users. Given the ownership structure of TikTok, there isn’t anything that can be done about this to shield American consumers from privacy violations. A forced divestiture would bring TikTok under the legal authority of the US and thus alleviate many of the concerns that consumers have about their security on the app. 

We praise Reps. Gallagher and Krishnamoorthi for spearheading this effort in a constitutionally nuanced and legal way that does not risk furthering the anti-tech attitudes of so many in Washington,” concluded Ossowski. “Upholding consumer choice is among our core principles, as is ensuring that the ethos of liberal democracies continues to guide the arc of technological progress.

READ: The best answer to TikTok is a forced divestiture 

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Washington, D.C., Ottawa, Brussels, Geneva, and other hotspots of regulation and inform and activate consumers to fight for  Consumer Choice. Learn more at consumerchoicecenter.org

Can you sue the ski hut where you contracted coronavirus?

European nations may be opening up their economies throughout the month of May, but that grand opening is likely to be dogged by the wave of COVID-19-related lawsuits.

We learned over the weekend that over 5,000 international tourists to the ski town of Ischgl, Austria are in the process of filing a lawsuit against the town and public officials. There are also being considered against ski resort owners in the area.

The lawsuit is being prepared by the Austrian Consumer Protection Association, which claims health authorities and the bar owners were “negligent” in not shutting down ski huts and restaurants earlier. They launched a website asking potential plaintiffs to share their information in order to join a future class-action lawsuit.

Often described as the “Ibiza of the Alps,” Ischgl made international headlines as an epicenter of the coronavirus crisis. At one particular venue, Kitzloch, a German bartender reportedly tested positive for coronavirus on March 7th. The bar closed its doors two days later. The town went into lockdown on March 13th. Tyrolean Governor Günther Platter then issued a province-wide quarantine on March 18th.

By the end of March, nearly 1,000 cases across Europe could be traced back to the resort town, and as many of 1,500 to the region itself.

The complaint states that the delay from the first known case until the ski town was ordered into lockdown was “negligible” and that authorities should have “known of a threat of mass infection”. Some have even blamed “greed” and “toxic business” as the reason local officials and business owners waited before shuttering doors. But as covered above, ski lodges and restaurants shut before provincial and national lockdowns ordered them to.

The first death in Austria from the coronavirus wasn’t until March 12, after which the town of Ischgl went into complete lockdown. The national lockdown went into effect four days later.

Is this enough to make a case against ski huts and villages where tourists contracted coronavirus?

As my colleague Linda Kavuka has pointed out, the current pandemic is a living and breathing example of Force Majeure, an Act of God that indemnifies certain parties in lawsuits and breaches of contract because it is simply “beyond the control” of any person or organization.

That said, there are legitimate questions to be asked: should ski towns have shuttered their doors and closed down bars and restaurants earlier? Likely. But we simply didn’t have the same information then as we do now.

And considering the very disturbing revelations about obfuscation of information by both the Chinese Communist Party and the World Health Organization at the outset of this crisis, it’s hard to place blame solely at the feet of local mayors and ski hut owners in the Alps.

(That’s why the U.S. states of Mississippi and Missouri have filed lawsuits against China.)

Of course, the fact that any skier or holiday goer would contract the coronavirus at a place where they were supposed to be enjoying themselves is a tragedy. Many people unknowingly spread the virus, were hospitalized themselves and died as a result. No one can excuse that loss of life and the grief that ensues.

But what we must hold uphold, in this situation and many more to come, is the facts and cases we allow to enter our legal system and our courts.

Classifying or assigning claims of negligence in the pandemic could likely mean thousands of unwitting public officials, business owners, and individuals will be held liable for what they didn’t know at the time. That would be a dangerous precedent.

We’ve often covered the incredibly litigious culture in the United States’ tort law system and articulated to reasons to reform it. Now, it seems, we’ll have to spread that same message throughout the European continent.

The World Health Organization fails us again: This time Coronavirus

Fred Roeder, Health Economist and Managing Director of the Consumer Choice Center

Last week when visiting Davos during the World Economic Forum, Dr. Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization, casually walked down the main street of the small alpine town without a worry in his face. At that moment, his organization saw  no international threat in the Chinese-originating coronavirus. This was despite worrying reports from China and questionable legitimacy of the official numbers provided by the Chinese Communist government.

Since then, the WHO has apologized and corrected their initial assessment. The virus is now seen as a high risk to the East Asian region and globally. 

History is repeating itself once more During the Ebola crisis in West Africa in 2014, it took the WHO months to finally declare an emergency. They were too tied up in fighting non-communicable diseases. 

The most important task, and the founding reason, of the WHO should be combating international diseases and coordination of rapid crisis responses. But unfortunately the Geneva-based agency spends much of its time with topics such as road safety, secondhand smoke, vaping, and the renovation of their own offices.

Next week the body’s executive board will convene from February 3rd-8th. Instead of revamping their agenda and fully focusing on how to contain the coronavirus, the current agenda prioritizes many other points before dealing with an international crisis response.

While our taxes should be spent on keeping us safe from this virus, the WHO’s board will instead spend the first couple of days discussing ideological ideas of universal healthcare reforms in emerging markets and how to limit patents of pharmaceutical companies. This is apparently more important for an agency that spends 10% of its 2 billion annual budget than figuring out how to effectively combat killer viruses. 

Once you scroll down the agenda of the meeting, you will finally find crisis response next to topics such as ‘aging in health’ and ‘renovation of the WHO Headquarters’.

So instead of putting the very real and scary threat of the Coronavirus first, the board members will prioritize how to limit incentives for the private sector to come up with treatments and vaccinations for the virus. Scrapping patents and limiting intellectual property rights are key pillars of the WHO’s priorities these days. Limiting patents is seen as a solution to curb health costs in emerging markets. For the international governmental organization, this seems to be an easier way than actually calling out their member states who often increase drug prices by 10-40% through import taxes and sales taxes paid by patients.

Chinese patients alone pay over 5 billion dollars a year on tariffs for drugs they import. In times of a massive health crisis in China, the WHO should urge the Chinese government to drop all of these tariffs momentarily.

After the Ebola outbreak in 2014, the private sector quickly reacted and several companies developed and delivered Ebola-vaccines at the same time. Now we need a similarly quick response for the coronavirus. Therefore, the WHO should not limit the innovative potential of the pharmaceutical industry but encourage them to invest in finding vaccines.

The coronavirus has already taken too many human lives and the situation will worsen. International trade and the global economy can also easily take a massive hit from a worsening situation. Instead of debating how to make the WHO’s offices better looking for natural light, its board should focus 100% on how to contain and combat the coronavirus. That’s priority number one.

Over and over, we see how the WHO fails to respond in an accurate and timely manner to such pandemics. It is high time for the agency to focus on its core mission: Protecting us from trans-national diseases.

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