Privacy & New Media

FTC
Feb, 2020

“Using its existing authority, the Commission has brought hundreds of privacy and data security cases to date. To better equip the Commission to meet its statutory mission to protect consumers, the FTC has also called on Congress to enact comprehensive privacy and data security legislation, enforceable by the FTC” .pdf report file

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https://www.ftc.gov/reports/privacy-data-security-update-2019

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The Washington Post

Nov 11, 2018

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Senators Richard Blumental (D-CT) and Tom Udall (D-NM) have introduced the Managing Your Data Against Telecom Abuses (MY DATA) Act. The MY DATA Act would grant the FTC jurisdiction over broadband providers, as well the authority to establish rules for privacy and data security online. “In the 21st century, internet access is a basic necessity. And signing up for a basic necessity should never mean you have to sign away your rights to privacy,” said Senator Blumenthal. EPIC has previously told Congress that the FTC has not done enough to safeguard consumer privacy, citing the Commission’s failure to enforce settlement agreements or to modify proposed settlements based on public comments. EPIC has also proposed comprehensive consumer privacy laws to combat the growing threats of data breaches, identity theft, and financial fraud.

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The Federal Trade Commission has updated its guidance for businesses on complying with the Children’s Online Privacy Protection Act. The new guidance clarifies that connected toys, Internet of Things devices, and other products intended for children must comply with the Act. “When companies surreptitiously collect and share children’s information, the risk of harm is very real,” FTC acting Chair Maureen Ohlhausen recently wrote. An EPIC-led coalition filed a complaint with the FTC in 2016 alleging that Intenet-connected dolls violate U.S. privacy law. EPIC’s complaint spurred a congressional investigation and toy stores across Europe have removed Cayla from their shelves. The FTC acknowledged EPIC’s complaint but has yet to act on it.

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The Ninth Circuit U.S. Court of Appeals heard oral arguments today in an open government case with implications for informational privacy. A group of anonymous medical employees challenged the release of personal information sought under a state public records act. EPIC filed a “friend-of-the-court” brief in the case arguing that withholding personal information is consistent with open government and constitutionally required. “Open government laws and privacy laws are complimentary: the aim is to maximize both the public’s access to information about the government and to safeguard personal privacy to the greatest extent feasible,” EPIC wrote. EPIC has argued for similar privacy protections in ATF v. Chicago, Chicago Tribune v. University of Illinois, Ostergren v. Cuccinelli, NASA v. Nelson, and FCC v. AT&T.

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The FBI released a Public Service Announcement warning consumers about the privacy risks of internet-connected toys. “Smart toys and entertainment devices for children are increasingly incorporating technologies that learn and tailor their behaviors based on user interactions,” the FBI wrote in the PSA, adding that the toys “could put the privacy and safety of children at risk due to the large amount of personal information that may be unwittingly disclosed.” Last year, EPIC and several consumer organizations filed a complaint with the Federal Trade Commission alleging that the “My Friend Cayla” doll violates U.S. privacy law. EPIC’s complaint spurred a congressional investigation and toy stores across Europe have removed Cayla from their shelves.

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A program hailed as an advertising breakthrough leads to a privacy complaint before a federal agency.

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Stephen R. Chuk

Proskauer Law

August 18, 2017

Whether it means taking a prominent role shaping data security for the Internet of Things, or addressing high profile breaches, the FTC has adopted an active position in policing data privacy and security. And, as data becomes increasingly digital in its form and protections, data security is of paramount importance for all types of intelligence—whether financial, medical, or otherwise sensitive.  The Commission’s emphasis on these areas has not slowed, even as the composition of the Bureau of Consumer Protection changes under a new administration.  The FTC’s actions over the past year reflect that Commission’s continued emphasis on data privacy and its recent data privacy settlements have provided companies with a trail of breadcrumbs from which they can extract lessons learned and help avoid potential FTC scrutiny.

The Commission has not adopted a particular “test” for whether they should bring an action. However, they have previously abided by a general standard that its data privacy enforcement actions were part of “an ongoing effort … to ensure that companies take reasonable and appropriate measures to protect consumers’ personal data.” Though the FTC’s litmus test may seem opaque, its focus has centered on two scenarios representing threats to private data: (1) when a company deceives consumers either through false representations of data security or misappropriations of private data; or (2) when a company fails to properly protect the data from hacking, and risks (or suffers) a breach. [1]

The FTC has taken a preventative approach to policing deceptive statements about privacy, in which companies’ advertising presents a false front about the level of security of consumer data. Over the past year, the Commission reached settlements with three different companies—Practice Fusion, Very Incognito Technologies, and Turn, Inc.—in various actions in which the Commission alleged the companies made misrepresentations about data privacy.

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