Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC Chairwoman urges greater consumer control in the Digital Age, (Aug 24, 2016)

By Greg Hammond, J.D.

Consumer control is a "fundamental building block for privacy," FTC Chairwoman Edith Ramirez stated in an August 22 keynote speech, entitled "Protecting Consumer Privacy in the Digital Age: Reaffirming the Role of Consumer Control," delivered at the Technology Policy Institute Aspen Forum.

Ramirez noted that with "the rise of big data analytics, the proliferation of connected devices, and the emergence of other new technologies, we have seen the marketplace evolve in ways that have significant implications for consumer control," such as: (1) the increasingly blurred line between personally-identifiable information and non-personally-identifiable information; (2) the sheer number of actors in the digital arena, which makes it more difficult for consumers to make informed choices and understand where their data is going; and (3) the increase in the use of big data analytics, which has the potential to weaken the effectiveness of consumer choice.

These implications raise a number of questions, according to Ramirez, such as: how can we ensure the effectiveness of consumer choices? How can consumers understand where their information is going and what it is going to be used for?

To tackle these questions, Ramirez identified distinct roles for three types of companies. "First, companies that offer products and services directly to consumers should be transparent about their data practices and should improve consumers’ ability to manage and express their privacy preferences," Ramirez said. Second, behind-the-scenes entities like ad networks should also offer and respect consumer choices through platform or browser tools. Data brokers—another example of behind-the-scenes entities—should develop a centralized Internet portal to identify themselves to consumers, describe their information collection and use practices, and provide links to access tools and opt outs. Lastly, the role for intermediaries, according to Ramirez, is to facilitate communication of privacy preferences between consumers and businesses.

The FTC Chairwoman also discussed the role the FTC plays in empowering consumers and ensuring that they have control over their personal information. In particular, the FTC: (1) conducts research to ensure that its policymaking efforts appropriately address privacy and security risks as the marketplace evolves; (2) uses its law enforcement authority to ensure consumers’ choices are honored and that companies safeguard the consumer data they collect; and (3) helps spur innovation in the creation of tools that help consumers express choices.

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