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During a much anticipated Open Commission Meeting announced by Commission Chair Lina M. Khan, the Federal Trade Commission (“FTC”) voted in favor of issuing one new policy statement and one new report to Congress.

First, the Commission unanimously voted in favor of issuing a policy statement on FTC initiatives…

Earlier this year, we blogged about address book scraping and some of the issues associated with the practice, specifically transparency and the use of unsolicited, deceptive e-mails. In a suit against reunion.com, a recipient alleged that she received a “deceptive” e-mail from the site because it was purported to be from her friend when in fact it was from reunion.com and sent without her friend’s consent.

Now another site has come under scrutiny for similar address book scraping tactics. This July, New York Attorney General Andrew M. Cuomo announced that he intends to sue Tagged.com (“Tagged”) for deceptive e-mail marketing practices and invasion of privacy.

When Flash cookies (also known as a “Local Shared Objects”) were first flagged as a privacy issue back in 2005, a few savvy companies added a disclosure about Flash cookies into their web site privacy policies. Since then, we have not heard the issue raised again. Now this sleeper issue seems to have been awakened by a recent report by researchers at the University of California, Berkeley, entitled Flash Cookies and Privacy. 

Flash cookies, which utilize a little-known capability of Adobe’s Flash plug-in, are a method to store information about a user’s preferences. (Estimates suggest that Adobe’s Flash software is installed on some 98 percent of personal computers.) Flash cookies may be used to provide better functionality to the user by, for example, storing the user’s preferences about sound volume or caching a music file for smoother play-back over an unreliable network connection. Flash cookies may also be used as unique identifiers that enable advertisers to track user preferences and circumvent deletion of HTTP cookies. Because Flash cookies are stored in a different location than HTTP cookies on one’s personal computer, simply erasing HTTP cookies, clearing browser history, or deleting the cache does not remove Flash cookies. …

Behavioral tracking of consumers online in order to deliver relevant advertising is a privacy issue that is receiving a lot of attention, and one that has been the focus of Federal Trade Commission and consumer group scrutiny. On September 25th, the United States Senate Commerce Committee held a hearing on online privacy and received commitments from the three industry representatives (from AT&T, Verizon and Time Warner Cable) that if they do deploy technologies that are able to track consumer online behavior in order to tailor advertising, that consumers will have clear notice and a full opportunity to provide affirmative consent. None of the companies currently use such technologies in their roles as Internet Service Providers. The broadband providers challenged the rest of the online industry, including web site operators and application providers such as Google, to provide the same protections to consumers. Essentially, the witnesses called for an end to “opt out” when it comes to online advertising.
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