The 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 which the staff will “redouble its efforts to educate [businesses] about compliance.” Such a campaign is designed to “clarify whether businesses are covered by the Rule and what they must do to comply.” The delay does not affect companies subject to the enforcement authority of federal agencies other than the FTC.
Doesn’t Alice Live Here Anymore? FACTA and the Address Discrepancy Rule
By Jennifer L. Roche on
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.
Red Flags and Address Discrepancies FAQs
By Proskauer Rose on
On Thursday, the staff of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision and the Federal Trade Commission issued a set of FAQs to assist financial institutions, creditors, users of consumer reports, and card issuers in complying with the Red Flags and Address Discrepancies Rules under FACTA.
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Red Flags Rule Interpretation Raises Red Flags
By Proskauer Rose on
We noted in an earlier post that the FTC determined that the Red Flags Rule applies to retailers who pass credit card applications on to lenders. However, there appears to be strong arguments against this interpretation.
EPIC Petitions for a Closer Look at the Cloud – Privacy Group Asks the FTC to Investigate Google Cloud Computing for Inadequate Safeguards and Unfair and Deceptive Trade Practices
By Scott Carpenter on
The Electronic Privacy Information Center (“EPIC”) recently filed a complaint with the Federal Trade Commission (“FTC”) accusing Google of failing to implement adequate privacy and data security safeguards and engaging in unfair and deceptive trade practices related to its “cloud computing” services.
FTC Provides Last Clear Chance for Industry to Self-Police in a Target-Rich Environment
By Proskauer Rose on
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.
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Consumer Advocacy Groups Request Federal Trade Commission Action To Stop Perceived “Threat” From Mobile Marketing
By Proskauer Rose on
In a year when behavioral advertising was already expected to be at the top of the hot button privacy issues list, on January 13, 2008, the Center for Digital Democracy (“CDT”) and U.S. Public Interest Research Group (“US PIRG”) filed a document with the Federal Trade Commission (“FTC”) urging the FTC to investigate online mobile marketing practices, to take new actions to stop mobile marketing activities that “abuse consumer rights,” and to recommend new federal legislation and enhanced enforcement power for the FTC in this area. The document expands on the groups’ concerns about online behavioral advertising generally – the delivery of ads tailored to consumers’ interests based on browsing habits and/or consumer demographics – to the mobile space. In doing so the groups cite the potential for even greater consumer harm because of the additional possibility of location-based targeting linked to a cell phone or other mobile device that is typically tied to a single consumer who uses it for multiple applications, including voice, video and data.
Federal Court Enjoins Sale of Keylogger Program
By Scott Carpenter on
A U.S. District Court for the Middle District of Florida recently issued a preliminary injunction ordering CyberSpy Software, LLC to stop promoting and selling “RemoteSpy,” a keylogger software program that, once installed on a computer, collects information regarding use of the computer.