FTC Proposes Privacy Framework That Will Impact the Business Model of All Online and Mobile Advertising Companies


The Federal Trade Commission (FTC) just published its preliminary Staff report setting out its proposed framework for protecting privacy in the digital economy. View the FTC’s press release here (see article for link). The FTC is seeking comments on its proposed framework by January 31, 2011 and expects to issue a final report in 2011.

Every digital media business that attracts advertising revenue online and/or through mobile devices, as well as the venture capital and private equity funds that invest in them, has a stake in the outcome of this proposed framework. It can affect current business models, future financial performance and potential exit opportunities for current and potential companies that rely on collecting data from consumers.

The final report, and possible new regulations and/or federal legislation to follow, will help shape substantive law, enforcement policies and commercial best practices regarding consumer privacy practices that will need to be followed.

Please see full article below for more information.

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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.

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