Over the course of the last decade, many companies have become accustomed to notifying consumers of their data collection practices in their online privacy policy. However, in a recent proposed settlement, the FTC indicated that, at least under the facts before them, disclosures that were “buried” in a privacy policy were not sufficient.
On June 4, the FTC reported a proposed settlement with Sears Holding Management Corporation of a complaint that Sears had failed to meaningfully disclose to customers the extent of the information it was collecting through its online market research software. The FTC claimed that this failure to disclose constituted an “unfair or deceptive act” under the Federal Trade Commission Act.