Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC releases annual privacy and data security update, (Jan 18, 2018)

By Peter Reap, J.D., LL.M.

Today the FTC released its annual report summarizing its privacy and data security efforts. In using its many tools to protect consumer privacy and promote data security, the FTC’s goals have remained constant: to protect consumers’ personal information and ensure that consumers have the confidence to take advantage of the many benefits of products offered in the marketplace. The agency noted its broad authority to address a wide array of practices affecting consumers under the FTC Act and a variety of sector specific laws, including the Truth in Lending Act, the CAN-SPAM Act, the Children’s Online Privacy Protection Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Telemarketing and Consumer Fraud and Abuse Prevention Act.

The report details the FTC’s use of a variety of tools to protect consumers’ privacy and personal information including bringing enforcement actions to stop law violations and require companies to take affirmative steps to remediate the unlawful behavior. The agency said that it has brought over 500 enforcement actions protecting the privacy of consumer information. Its enforcement actions have addressed practices offline, online, and in the mobile environment. It has brought enforcement actions against well-known companies, such as Google, Facebook, Twitter, and Microsoft, as well as lesser-known companies.

The FTC has brought enforcement actions addressing a wide range of privacy issues, including spam, social networking, behavioral advertising, pretexting, spyware, peer-to-peer file sharing, and mobile. These matters include over 130 spam and spyware cases and more than 50 general privacy lawsuits. In addition, since 2002, the FTC has brought over 60 cases against companies that have engaged in unfair or deceptive practices that that failed to adequately protect consumers’ personal data.

Among the FTC’s privacy and security actions announced in 2017 include settlements with computer manufacturer Lenovo, and with Vizio, one of the world’s largest makers of smart TVs. In addition, the FTC in 2017 brought its first actions enforcing the EU-U.S. Privacy Shield framework. Significant developments in 2017 also included actions filed by the FTC against Uber and computer networking equipment manufacturer D-Link. Also highlighted was the agency’s action against online tax preparation service TaxSlayer over alleged violations of the Gramm-Leach-Bliley Act’s Safeguards Rule.

The FTC also issues reports, conducts research and holds events bringing together stakeholders to discuss emerging issues in consumer privacy and security. The FTC’s 2017 events included workshops examining the security and privacy issues related to connected cars, student privacy and education technology, the changing nature of identity theft, and informational injury.

New in 2018. The Commission’s privacy accomplishments will continue in 2018, it was noted. This month, the FTC announced the agency’s first children’s privacy and security case involving connected toys against electronic toy maker VTech. The company agreed to pay $650,000 to settle allegations that it violated the Children’s Online Privacy Protection Act by collecting personal information from children without providing direct notice and obtaining their parent’s consent, and failing to take reasonable steps to secure the data it collected. Also in January, the FTC and the state of Nevada charged the parties responsible for revenge porn site MyEx.com with violating federal and state law by posting intimate images of people, together with their personal information, without their consent. One of the defendants agreed to a permanent ban on posting intimate images without consent. Finally, the Commission released a staff perspective detailing the key takeaways from the 2017 connected cars workshop. The Commission will also be hosting its third annual PrivacyCon event on February 28, 2018.

News: CyberPrivacyFeed Privacy FederalTradeCommissionNews