Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC Commissioner Brill calls on data brokers to provide more information, access to consumers, (Nov 20, 2013)

By Jeffrey May, J.D.

Speaking at the Brand Activation Association’s 35th Annual Marketing Law Conference in Chicago today, FTC Commissioner Julie Brill expressed concern with how little consumers know about the collection and use of their information by data brokers. According to Brill, there is a “lack of market forces” controlling the conduct of certain data brokers. One reason for this is that consumers do not interface with the companies that collect personal information about consumers from a variety of public and non-public sources and resell the information to other companies.

Brill expects the FTC to release a report on its current formal study of the privacy practices in the industry in early 2014. She also predicted that legislation is likely to be introduced in Congress. Like the FTC, the Senate Commerce Committee is looking into the practices of data brokers. Brill said that she supports legislation in the area.

While there are different types of data brokers, Brill suggested that there was a need for greater transparency from companies that collect and use data to provide risk management and fraud control services. According to Brill, these data brokers need to provide consumers with notice of their collection and use practices. They also need to provide consumers with the ability to correct wrong information.

Brill reiterated her call for industry to help consumers regain control over their private and sensitive information. She touted the agency’s “Reclaim Your Name” initiative, which would give consumers the knowledge and tools to reassert control over their personal data. She suggested that the industry should provide such tools.

Internet of Things. Brill also provided the nearly 700 attendees of the Brand Activation Association (formerly Promotion Marketing Association) event with a report on yesterday’s “Internet of Things” workshop. The Internet of Things, which refers to the world of connected devices, presents new challenges to consumer privacy, in Brill’s view. She explained that the FTC decided to conduct the workshop to provide “best practices” for businesses looking to release even more devices connected to the Internet, from home security systems to medical devices. There were no current plans to issue regulations in this area, she added.

Brill said that there was a need for guidance, however, because it was unclear how collected information might be used for secondary, non-obvious reasons. Because these connected devices might not have a consumer interface, consumers might not be aware of what information is being collected and where it is going, Brill noted.

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