FTC Releases Recommendations for Business and Policymakers

by Proskauer - Privacy & Data Security
Contact

On March 26, 2012, the FTC released its final report titled “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Business and Policymakers.”  The report reflects feedback from the FTC’s privacy roundtables as well as over 450 public comments received in response to its proposed framework released in December 2010.  The framework applies to all commercial entities that collect or use consumer data that can be reasonably linked to a specific consumer, computer or other device, with an exemption for entities that collect only non-sensitive data from fewer than 5,000 consumers per year and do not share the data with third parties.

The FTC has called on individual companies, trade associations and self-regulatory bodies to adopt the principles contained in the report, specifically:

  • Companies should promote consumer privacy throughout their organizations and at every stage of the development of their products and services.
    • Companies should incorporate substantive privacy protections into their practices, such as data security, reasonable collection limits, sound retention and disposal practices, and data accuracy.
    • Companies should maintain comprehensive data management procedures throughout the life cycle of their products and services.
  • Companies should simplify consumer choice.
    • Companies do not need to provide choice before collecting and using consumer data for practices that are consistent with the context of the transaction or the company’s relationship with the consumer, or are required or specifically authorized by law.
    • For practices requiring choice, companies should offer the choice at a time and in a context in which the consumer is making a decision about his or her data.  Companies should obtain affirmative express consent before (1) using consumer data in a materially different manner than claimed when the data was collected, or (2) collecting sensitive data for certain purposes. 
  • Companies should increase the transparency of their data practices.
    • Privacy notices should be clearer, shorter, and more standardized to enable better comprehension and comparison of privacy practices.
    • Companies should provide reasonable access to the consumer data they maintain; the extent of access should be proportionate to the sensitivity of the data and the nature of its use.
    • All stakeholders should expand their efforts to educate consumers about commercial data privacy practices.

Additionally, the FTC has committed to being active in the following areas over the next year:

  • Do Not Track – While progress has been made in implementing Do Not Track, the FTC has stated that it will continue to work with the Digital Advertising Alliance and the World Wide Web Consortium to “…complete implementation of an easy-to use, persistent, and effective Do Not Track system.”
  • Mobile – The FTC has initiated a project to update its business guidance about online advertising disclosures. 
  • Data Brokers – The FTC has indicated that it supports legislation that would provide consumers with access to their information that is in the possession of data brokers.  The FTC has also called on data brokers to create “…a centralized website where data brokers can (1) identify themselves to consumers and describe how they collect and use consumer data and (2) detail the access rights and other choices they provide with respect to the consumer data they maintain.”
  • Large Platform Providers – The FTC has expressed concerns regarding the tracking of consumers by ISPs, operating systems, browsers and social media.  
  • Promoting Enforceable Self-Regulatory Codes – The FTC has stated that it will participate in the Department of Commerce’s project to facilitate the development of sector-specific codes of conduct.  The FTC has indicated that, to the extent strong privacy codes are developed, adherence to such codes will be viewed favorably by the FTC.   

A copy of the report is available here.  

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Proskauer - Privacy & Data Security | Attorney Advertising

Written by:

Proskauer - Privacy & Data Security
Contact
more
less

Proskauer - Privacy & Data Security on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.