New Privacy Measures Announced by the White House and the California Department of Justice

Two new privacy measures are likely to impact organizations that collect information about their customers online.

At the federal level, the Obama administration released a report proposing a framework for American privacy and data protection policy.  The report, entitled “Consumer Data Privacy in a Networked World:  A Framework for Protecting Privacy and Promoting Innovation in the Global Digital Economy,” includes a Consumer Privacy Bill of Rights that sets forth individual rights for consumers and corresponding obligations for companies that collect personal data.  Read more »

FTC Report Warns Enforcement Action May be Next for Mobile Apps for Kids

The Federal Trade Commission (FTC) issued a staff report yesterday that says makers of mobile apps directed at children, the app stores that sell them, and certain third parties providing services within apps (e.g., advertisers), are not providing the information that parents need to understand what data the apps collect and how that data is handled.  In the report, the FTC also indicates that, during the next six months, the FTC staff will conduct an additional review to determine whether existing privacy regulations (including the Children’s Online Privacy Protection Rule) are being violated, and whether new enforcement actions are appropriate.  Taken together with recent FTC actions, the staff report is a clear reminder that the FTC regards the protection of children’s privacy as a crucial issue, and serves as a warning that additional enforcement efforts relating to mobile apps and children’s privacy are likely to be imminent. Read more »

Publishers Sued for Allegedly Violating California Privacy Law

In the last several weeks, plaintiffs’ lawyers have filed a number of class action lawsuits against businesses for allegedly violating California’s “Shine the Light” privacy law (the “Law”).  According to one report, targets include nearly a dozen publishers, including Men’s Journal, Reader’s Digest, and CBS Interactive.  The complaints allege that each business failed to comply with its obligations under the Law by not providing California customers with a method for obtaining a disclosure regarding how they share information.  Read more »

FTC Sends Warning to Marketers of Mobile Apps for Background Screening

The Federal Trade Commission (FTC) recently warned the marketers of several mobile Apps that they may be violating the Fair Credit Reporting Act (FCRA), a federal law enforced by the FTC.  Each of the Apps at issue include background screening functionality. 

The companies that received the warning letters are InfoPay, Inc., marketer of the Criminal Pages app, Everify, Inc., marketer of the Police Records App, and Intelligator, Inc., marketer of Background Checks, Criminal Records Search, Investigate and Locate Anyone, and People Search and Investigator Apps.  

These App marketers were warned that if they have reason to believe the background screening reports generated by their Apps are being used for employment screening, housing, credit, or other similar purposes, they must comply with the FCRA.   Read more »

FTC Concludes Investigation Concerning Gifts to Bloggers in Exchange for Endorsements

The Federal Trade Commission (“FTC”) recently closed its investigation of Hyundai Motor America’s (“Hyundai”) alleged violation of Section 5 of the FTC Act (15 U.S.C. § 45) in connection with a blogging campaign conducted to spark interest in Hyundai’s Super Bowl XLV ads. The inquiry focused on whether bloggers were given gift certificates as an incentive to comment on or post links to the ads and if they were explicitly told not to disclose this information in violation of the FTC Endorsement Guides.

The Endorsement Guides require the disclosure of any material connection between an endorser and an advertiser that is not reasonably expected by the audience. In its closing letter, the FTC stated that a gift to a blogger for posting specific content promoting an advertiser’’s products or services is likely to constitute such a material connection. Read more »

Facebook Settles FTC Privacy Charges

The Federal Trade Commission (FTC) announced last week that Facebook has settled charges that it deceived consumers by making false privacy assurances, and then repeatedly allowing consumer information to be shared and made public.  The settlement serves as a timely reminder that companies must abide by their own statements regarding how personal information is used and shared.

Under the terms of the settlement, Facebook is: Read more »

Accountability Program Announces Initial Compliance Agreements

The Council of Better Business Bureaus (CBBB) has announced the first six compliance agreements with online behavioral marketers under its Online Interest-Based Advertising Accountability Program’s (Program) self-regulatory regime.

Beginning in August, the Program began testing the functionality, usability, and duration of consumer-choice mechanisms offered by a number of companies.  As a result of that testing, self-regulatory inquiries were opened with Forbes Media Extension (FMX), Martini Media, PredictAd, QuinStreet, Reedge and Veruta.  The cases primarily concerned the duration of end users’ opt-out options.  For example, FMX’s opt-out cookie was set to expire in less than six months from the date of the request, rather than the industry standard five-year time frame.  Other cases involved the accessibility of the opt-out mechanism.  QuinStreet’s and Veruta’s (MyBuys) opt-out mechanisms, for example, were inaccessible due to either a missing or broken link. Read more »

Video Ad Network Settles FTC Privacy Complaint

The Federal Trade Commission’s proposed settlement with the online advertiser ScanScout, announced yesterday, offers a timely reminder of the importance of ensuring that your company’s stated privacy practices align with how your company actually collects and uses information.

ScanScout is a video advertising network that places advertisements on websites and, in the process, tracks online browsing behavior via cookies.  This tracking enables ScanScout to serve advertisements that correspond to users’ interests.  According to the FTC complaint, ScanScout’s website privacy policy included some disclosure about the use of cookies to track users’ behavior.  Notably, for several years, ScanScout’s privacy policy stated: “You can opt out of receiving a cookie by changing your browser settings to prevent the receipt of cookies.”  Read more »

Measuring Buzz: Best Practices for “Social Listening”

Today advertisers are not only mastering the art of speaking through social media channels, they are also exploring ways to listen and learn.  But while “social listening” or “social media monitoring” can yield valuable market data, these practices also raise privacy and ethical concerns.

To help marketers navigate this important frontier, The Council of American Survey Research Organizations (“CASRO”) recently issued social media research guidelines (the “Guidelines”). While the Guidelines are not laws, and are not even mandated by CASRO to its members, they are designed to establish best practices for research and observation in the social media space. Read more »

FTC Proposes Revisions to Children’s Online Privacy Rule

The Federal Trade Commission (FTC) recently released its proposed revisions  to the rule (Rule) implementing the Children’s Online Privacy Protection Act (COPPA). The revisions would update the existing Rule to cover social media, mobile devices, and other technologies that were not taken into account at the time the Rule was enacted.

Over a decade ago, COPPA was enacted to prohibit “unfair or deceptive acts or practices in connection with the collection, use and/or disclosure of personal information” from and about children under the age of 13 on the Internet. COPPA requires that operators of websites or online services directed to children under 13, or that have actual knowledge that they are collecting personal information from children under 13, obtain verifiable consent from parents before collecting, using or disclosing such information. The Rule contains a “safe harbor” provision enabling industry groups to submit to the FTC for approval self-regulatory guidelines implementing the Rule’s protections. Read more »

WordPress Themes