The FTC published on September 5, 2012 guidelines for mobile application developers to assist them observe truth-in-advertising and basic privacy principles when marketing their applications.
Tag Archives: FTC
Shaking Up the Settlement Process: FTC Reconsiders Whether Companies Can Deny Wrongdoing While Settling Privacy Violation Claims
Posted in FTC Enforcement, Online PrivacyThe Federal Trade Commission (“FTC”) recently announced settlements of cases brought against Google and Facebook for alleged privacy violations. The Google settlement drew headlines for being the largest fine ever assessed for the violation of a FTC consent order ($22.5 million). But Commissioner J. Thomas Rosch’s dissents are perhaps more momentous, as they have prompted the… Continue Reading
Smart Grid Technology Implicates New Privacy Concerns
Posted in Data Privacy LawsThe smart grid is an advanced metering infrastructure made up of “smart meters” capable of recording detailed and near-real time data on consumer electricity usage. That data would then be sent to utilities through a wireless communications network. In recent years, utilities have increased the pace of smart meter deployment—smart meters are expected to be… Continue Reading
FTC Releases Recommendations for Business and Policymakers
Posted in Mobile Privacy, Online PrivacyThe FTC released its final report titled “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Business and Policymakers” which sets forth principles that companies are recommended to follow with respect to their privacy practices.
Do I really have to obtain consent from all my customers to make a change to my privacy policy?
Posted in Data Privacy Laws, FTC Enforcement, Online Privacy"Do I really have to obtain consent from all my customers to make a change to my privacy policy? No one else seems to be following that rule." We get this question all the time. It is understandable, given that we often watch Web-based companies expand their usage of consumer data without the affirmative consent… Continue Reading
Facebook Accedes to the FTC’s Poke, Settles FTC’s Charges
Posted in FTC EnforcementFacebook recently agreed to settle charges by the Federal Trade Commission (FTC) that Facebook violated the FTC Act. The FTC-Facebook settlement, which is still subject to final FTC approval, prohibits Facebook from making misrepresentations about the privacy or security of its users’ personal information, requires Facebook to obtain users’ affirmative consent before enacting changes that override the users’ privacy preferences, and requires Facebook to prevent anyone from accessing material posted by a user more than 30 days after such user deleted his or her account. Similar to the March 2011 FTC-Google settlement, the Facebook settlement requires that Facebook enact a comprehensive privacy program and not misrepresent its compliance with the US-EU Safe Harbor Principles. As we previously reported, these two requirements are relatively new FTC settlement terms, which were first used in March 2011.
The FTC Has Your Back, Even When It’s Naked: FTC Orders P2P Program’s Default File Sharing Settings Changed
Posted in FTC EnforcementFrostWire LLC (a P2P file-sharing software company) agreed to change the default privacy settings on its mobile and desktop applications and agreed to clearly disclose its applications’ content sharing options pursuant to a settlement agreement with the FTC which resulted from claims by the FTC that FrostWire’s content sharing practices violated the FTC Act.
COPPA Violations? Cop a Settlement for $3 Million
Posted in Children's Online Privacy Protection ActPlaydom, Inc., an online game company owned by Disney, and Playdom’s CEO, Howard Marks, agreed to pay $3 million to settle charges brought by the FTC that they violated COPPA by collecting, using and disclosing the personal information of children under the age of 13 without their parents’ prior, verifiable consent. The $3 million settlement is the largest civil penalty ever for a COPPA violation.
FTC Says Scoot, Rascal! Rascal Scooters Penalized $100,000 for Calling Consumers on the Do Not Call Registry
Posted in Direct MarketingThe maker of Rascal Scooters agreed to pay $100,000 as a civil penalty to settle a complaint filed by the FTC alleging that Rascal Scooters violated the FTC Act and the FTC’s Telemarketing Sales Rule.
FTC-Google Settlement Marks Two “Firsts” in FTC Privacy Enforcement
Posted in FTC Enforcement, Online PrivacyGoogle recently settled charges by the Federal Trade Commission (FTC) that Google’s social networking service, Buzz, violated the FTC Act. The FTC-Google settlement prohibits Google from misrepresenting the extent to which it maintains and protects the confidentiality of users’ information and from misrepresenting its compliance with the US-EU Safe Harbor Framework. In that regard, the settlement represents two important “firsts” in FTC enforcement.
Credit Report Resellers Settle FTC Charges Over Poor Security
Posted in FTC EnforcementThe Federal Trade Commission recently announced that it reached a settlement with three consumer credit report resellers whose information security practices and procedures were not sufficient to prevent hackers to obtain more than 1,800 consumer credit reports without authorization. The settlement resolves allegations that the resellers violated the Fair Credit Reporting Act, the FTC Act and… Continue Reading
What Do You Really Need to Know About the FTC’s Recent Report on Privacy?
Posted in Data Privacy LawsYesterday, we blogged about the FTC’s report released last week, “Protecting Consumer Privacy in an Era of Rapid Change.” But if the FTC’s recommendations become requirements, how would they change what the typical company is doing today?
FTC Commissioner Brill Enlightens Audience at Proskauer’s Annual Privacy Event
Posted in MiscellaneousOn October 19, 2010, speaking at the annual Proskauer on Privacy conference, the Federal Trade Commission’s newest Commissioner, Julie Brill, had a lot to say about self-regulation, teen privacy and other FTC privacy initiatives. You can read what she said, in her own words, on our privacy law blog.
Never Make a Promise You Can’t Keep- Especially in Your Privacy Policy
Posted in Online PrivacyIn a handful of cases, including two which were recently decided, companies have been thwarted in various, unexpected ways by the commitments made in their online privacy policies.
Sanctions for Lazy Disposal Require Drug Store Chain to Re-”Rite” its Data Security Policies and Procedures
Posted in Data Privacy LawsRite Aid has agreed to pay $1 million to resolve allegations that it violated the Health Insurance Portability and Accountability Act (“HIPAA”) by pitching pill bottles and prescription information into publicly accessible dumpsters near Rite Aid stores. According to HHS’ resolution agreement, released on July 27, Rite Aid must implement a three-year corrective action program, which includes the adoption of revised policies and procedures concerning the disposal of sensitive health-related information, employee training programs and procedures and penalties for employees that fail to comply with them. Rite Aid also entered into a separate, but related settlement with the FTC to resolve allegations that the company failed to live up to promises made in its privacy policy.
Twitter’s Settlement With the FTC Demonstrates that “Reasonable Security” Isn’t Only About Online Commerce
Posted in FTC Enforcement, Identity Theft, Online PrivacyThe social networking and micro-blogging service Twitter recently agreed to settle charges with the Federal Trade Commission (FTC) regarding its privacy and data security practices. Similar to settlement terms reached with other online merchants, the settlement bars Twitter for 20 years from misleading consumers about the extent to which it protects the security, privacy, and confidentiality of nonpublic consumer information. Notably, the agreement also requires Twitter to maintain a comprehensive information security program and submit to audits of the program for 10 years. The settlement agreement does not include a monetary penalty. The FTC alleged that despite Twitter’s promises on its website to protect the personal information of its users, Twitter’s practices failed to provide reasonable and appropriate security. Unlike many of the other companies that the FTC has pursued regarding online security practices, Twitter does not sell goods online or collect financial information from its users.
FTC Extends (Yet Again) Enforcement Deadline for Identity Theft Red Flags Rule
Posted in Identity TheftThe Federal Trade Commission announced today that it is once again extending the deadline for enforcing its “Red Flags” Rule, while Congress considers legislation that would affect the scope of entities covered by the Rule. The FTC is delaying enforcement of the Rule until December 31, 2010 in response to a request from members of Congress who are working to finalize legislation that would limit the scope of business covered by the Rule.
Robocalling. Easy. Doing it right? Maybe not so much . . .
Posted in Direct MarketingOn April 27, 2010, the Federal Trade Commission announced separate settlements with women’s clothing retailer Talbots and its telemarketer SmartReply, Inc. for violations of the Telemarketing Sales Rule (“TSR”). The FTC alleged that SmartReply’s robocalls for Talbots did not allow consumers to opt out of future calls until they had listened to almost all of the prerecorded solicitation or failed to provide opt out instructions; did not immediately disconnect consumers that chose to opt out; and failed to notify live call recipients of their right to opt out at any time during the call.
The FTC Brings 27th Case for “Faulty Data Security Practices”
Posted in FTC EnforcementOn March 25, 2010, the Federal Trade Commission (“FTC”) announced that it had entered into a settlement with entertainment operator, Dave & Buster’s, Inc., for alleged violations of Section 5(a) of the FTC Act, and for “engag[ing] in a number of practices that, taken together, failed to provide reasonable and appropriate security for personal information on its networks.”
The settlement marks the 27th case brought by the FTC against a company for insufficient data security practices.
Life Unlocked? FTC and 35 State Attorneys General Ding LifeLock, Inc. for Deceptive Claims and Poor Data Security
Posted in FTC EnforcementOn March 9, 2010, the Federal Trade Commission and 35 state attorneys general announced a negotiated settlement with LifeLock, Inc. which resolves charges that LifeLock misrepresented the nature and effectiveness of the identity theft protection services it offers, and made false claims about its own data security practices. In the words of FTC Chairman Jon Leibowitz, “While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it.”
We Were Wrong About the Third Time Being A Charm: FTC Delays Enforcement of Red Flags Rule Yet Again
Posted in Identity TheftToday, at the urging of Members of Congress, the Federal Trade Commission (“FTC”) announced that it will delay enforcement of its Red Flags Rule for the fourth time. Financial institutions and creditors subject to enforcement by the FTC will now have until June 1, 2010 to develop written policies and procedures to detect and respond… Continue Reading
COPPA Enforcement Action
Posted in Children's Online Privacy Protection ActEarlier today, the FTC announced its latest COPPA enforcement action (http://www.ftc.gov/opa/2009/10/iconix.shtm). Iconix Brand Group, Inc., the operator of websites featuring its apparel brands, was fined $250,000 for collecting personal information from children without complying with COPPA’s parental consent rubric. The FTC cited the websites associated with the brands Mudd, Candie’s, Bongo and OP, which are… Continue Reading
FTC Continues Safe Harbor Enforcement Streak With Six New Proposed Settlements
Posted in European UnionOn October 6, 2009, in one fell swoop, the Federal Trade Commission (“FTC”) announced proposed settlements of charges against six companies for violations under the US/EU Safe Harbor Program. Specifically, these companies (World Innovators, Inc.; ExpatEdge Partners LLC; Onyx Graphics, Inc.; Directors Desk LLC; Collectify LLC; and Progressive Gaitways LLC) were alleged to have continued… Continue Reading
Third Time’s A Charm: FTC Delays Enforcement Of The Red Flags Rule Again
Posted in Identity TheftThe Federal Trade Commission (“FTC”) announced today that, for the third time, it will delay enforcement of the Red Flags Rule until November 1, 2009 – a year after the original November 1, 2008 compliance deadline. In delaying enforcement yet again, the Commission stated that it intends to engage in an “expanded business education campaign” in… Continue Reading