Federal Trade Comission

The FTC indicated that it will use its rulemaking authority under the FTC Act’s Section 18 to create a new rule that will likely seek to rein in broad data collection and use.

In October 2021, FTC Commissioner Rebecca Kelly Slaughter made two speeches in which she expressed a desire to move beyond the FTC’s “notice-and-consent” framework to address broader surveillance practices that underlie the digital advertising economy, specifically by applying “bright-line purpose and use restrictions that minimize the data that can be collected and how it can be deployed.”

With the spread of the novel coronavirus (COVID-19), cybersecurity criminals and scammers are ramping up their efforts to target vulnerable employers and workforces. The FTC announced today that since January they have received more than 7,800 fraud complaints from consumers related to the COVID-19 pandemic. But the FTC isn’t slowing down either. Even with the FTC having to change its own procedures due to COVID-19, the FTC has been publishing guidance on COVID-19 scams and also sending out warning letters to sellers of false treatments.

On January 27, 2015 the Federal Trade Commission (the “FTC”) issued a report detailing best practices and recommendations that businesses engaged in the Internet of Things (“IoT”) can follow to protect consumer privacy and security. The IoT refers to the connection of everyday objects to the Internet and the transmission of data between those devices. According to Gartner estimates the IoT services spending will reach $69.5 billion in 2015. The potential benefits of IoT growth include enhanced healthcare through connected medical devices, convenience and cost savings through home automation and improved safety and convenience through connected cars.

The Federal Trade Commission recently announced its settlement with the operator of www.skidekids.com concerning allegations that the operator violated the Children’s Online Privacy Protection Act Rule (“COPPA Rule”) by collecting personal information about children without obtaining parental consent. For Skid-e-kids, the FTC’s settlement means taking remedial measures; an injunction; and a $100,000 civil penalty. For the rest of us, the settlement is a good reminder that the FTC is staunchly committed to protecting children’s privacy. So when it comes to collecting personal information from children online, it’s important to do it right . . . or not at all.

Section 315 of FACTA requires institutions that utilize consumer reports (“users”) to develop and follow certain procedures when notified of an address discrepancy  by a national CRA (Equifax, Experian and TransUnion). Under FACTA, national CRAs are required to issue a “notice of address discrepancy” when an address provided by a user requesting a consumer report “substantially differs” from the address the CRA has on file for that consumer. The Address Discrepancy Rule then requires users of consumer reports to develop and implement written policies and procedures to respond to receipt of a discrepancy notice. There are two components to the policies required by the Rule: the first relates to the user’s evaluation of the address discrepancy; the second relates to the user’s potential obligation to report the consumer’s address to the CRA.

On February 12, 2009, the FTC issued its long-anticipated Staff Report on Self-Regulatory Principles for Online Behavioral Advertising. The revised Self-Regulatory Principles are the result of a year of study of the more than 60 comments provided by industry, advocacy organizations, academics, and individual consumers in response to the FTC’s proposed self-regulatory principles issued in late 2007.