In March, the Federal Trade Commission
issued its final report on Internet privacy, "Protecting Consumer Privacy in an Era of Rapid Change" (PDF). Though it does not carry the force of law, the report urged Congress to enact general legislation on privacy, data security, and data brokers, and it encouraged companies that handle consumer data to incorporate simpler, more transparent privacy protection options for their customers.
The report was the result of a collaborative process, incorporating comments the FTC received from more than 450 corporate representatives, privacy advocates, and consumers in response to a preliminary report released in December 2010. The final report focused on three themes, reiterated throughout the report, and the FTC's recommendations for best-practices.
Privacy by design: Companies should promote consumer privacy throughout their organizations by incorporating "substantive privacy protections" in areas such as data security, collection limits, retention and disposal policies, and data accuracy. Companies also should maintain "comprehensive data management procedures throughout the life cycle of their products and services" to ensure that privacy practices remain robust.
Simplified consumer choice: Companies need not provide consumers a choice before collecting data for practices "consistent with the context of the transaction or the company's relationship with the consumer." But where required, choice should be offered "in a context in which the consumer is making a decision about his or her data." Where data use materially differs from the manner described at collection, the change should require express consent.
Transparent data collection: Privacy notices should be "clearer, shorter, and more standardized to enable better comprehension and comparison," and companies should provide reasonable and proportionate access according to the type of data they maintain. Companies should also increase efforts to "educate consumers about commercial data privacy practices."
In addition to these themes, the FTC indicated five action items that were of special concern to the agency.
Do Not Track: The importance of sustained collaboration between government and industry was underscored, even though the FTC praised browser vendors for developing tools to limit third-party data collection.
Mobile: At a workshop it hosted in May 2012, the agency urged mobile service companies to address advertising and privacy issues, such as developing shorter, more meaningful disclosures.
Data brokers: A centralized Website should be created to identify data brokers and disclose their practices.
Large platform providers: The FTC singled out Internet service providers, Web browsers, operating systems, and social media tools for their ability to "comprehensively track consumers' online activities." The agency will host a workshop this year to address this issue.
Promoting enforceable self-regulatory codes: The FTC vowed to help develop "sector-specific codes of conduct," and it indicated that company adherence to such codes will influence FTC enforcement efforts.
The FTC has also restated its desire to collaborate with the Department of Commerce and the White House, which released its own policy report in February 2012. That report, "Consumer Data Privacy in a Networked World" (PDF), outlined a Consumer Privacy Bill of Rights that would expand and clarify the legal landscape relating to consumer privacy, while making the FTC a privacy enforcement agency. Any expansion of the FTC's authority would depend on congressional action.
[Disclosure: The author is a partner in the New York offices of Jones Day. Andrew S. Burchiel, a summer associate at the firm, assisted in the preparation of this article. The views expressed are solely those of the author and should not be attributed to the author's firm or its clients.]
What is the job role of a lawyer ? Simply making things look right. So if the party he or she is doing thewrong thing, what the lawye has to do is to make it look right. Thats whats happening.
The FTC (among others) has been pushing public education as one means to improve the climate of privacy protection. There are, of course, many simple measures that consumers (and others) can take to help protect their own privacy, many of which may be as effective as anything the government can conceive. The FTC, for example, in its recent report praises the use of "do not follow" software on internet search software.
Yes...people are willing to give up privacy for little until something happens that bothers them (i.e. their info lands in a shady website or they get hacked). A mentality shift needs to happen in order for things to change.
There have been a lot of suggestions for how to make privacy notices simpler / more understandable:
1.Establish some sort of rating code, so that levels of privacy (A, B, C) could be easily understood.
2. Establish some form of tagging system, making policies machine readable, and let the machines do the coding / rating.
3. Establish privacy zones on the internet (perhaps using new suffixes, like .prv for "private"), which can only be used by those who meet essential standards.
The real problem with all of these is that, on the whole, even though consumers SAY they want privacy protection, they are not willing to DO a lot to protect privacy, and they are willing to GIVE UP privacy for relatively little in return.
I'm not sure what you mean by your comment. Yes, lawyers draw up contracts and terms, but if these terms are to be read by a broad audience, shouldn't the language be suited to that audience?
Well I may be wrong on this staement but I feel lawyers do look into things in a different aspect. It may be because of their job role that they have to think the other way round if its wong or right to make things wrong look ight but if so thee is no justice in this world.
Privacy notices should be "clearer, shorter, and more standardized to enable better comprehension and comparison," and companies should provide reasonable and proportionate access according to the type of data they maintain. Companies should also increase efforts to "educate consumers about commercial data privacy practices."
One of the things users don't do is read the privacy notices, and if the language was clearer and simpler, that might change. Use of simple language is common business practice and people don't like to try and navigate legalese.
The FTC has investigated in this area (studies, conferences, reports) for more than a decade, and has taken some actions based on its power to prevent "deceptive" trade practices, but (to date) the FTC has not received a mandate from Congress to regulate directly in the privacy arena. Indeed, there is no single national privacy-protection agency in the USA. To a degree, our system of federalism (states' rights) and check-and-balance division of power favors that approach. But one result is that we have something of a patchwork quilt of privacy laws, which may not always provide adequate protection for individuals, and at the same time can produce uncertainty (and therefore extra cost and burden) for businesses. The Europeans seem to have the problem in reverse. There is a supranational privacy directive, which applies to all the EU member states, but each country determines for itself how much enforcement effort to put behind the directive. And individual states vary in their interpretations of the directive. The problem of defining and enforcing privacy rights may be inherent in any political system. Much of the discussion of "co-regulation" of privacy (with industry proposing rules, and government essentially backstopping enforcement of the rules) is an attempt to compromise on that inherent problem.
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A recent Michigan case -- Ahmed v. Finley's Mfg. Co. -- concerned the settlement of class action claims that "halal" products offered at fast food restaurants in Dearborn did not comply with Islamic dietary restrictions.
The United States has no single national privacy protection agency. Over the past 20 years, however, the Federal Trade Commission (FTC) has taken a leading role in education, outreach to consumer and industry groups, and enforcement in the area of privacy and data security. The FTC’s Division of Privacy and Identity Protection, within its Bureau of Consumer Protection, enforces several federal statutes, regarding “unfair or deceptive” practices, fair credit reporting, and confidentiality of financial information. Further, the FTC takes principal responsibility for enforcement of the Children’s Online Privacy Protection Act (COPPA), which aims to place parents in control over what information is collected from their young children online.
The advancement of digital technology opens unprecedented avenues for e-commerce, aided by digital currency systems. In addition to online credit cards and other forms of payment, technology has developed to the point where individuals can carry digital wallets within their smartphones and complete transactions with near-instantaneous payment. This Forbes India article provides a description of digital wallet systems.
Social media platforms have greatly transformed personal interactions in the work environment. But the trend toward daily use of social networks, at work and elsewhere, has generated legal controversy as to what is protected worker activity and what is grounds for termination.
In the final episode of this series about the death of Internet anonymity, Saunders describes how the Internet of the future will start to attain a level of intelligence that requires no human intervention. Scary.
What can users today do to protect their online privacy? The simplest and most obvious option is to not use the Internet – at all. However, once all digital information is consolidated over the Internet, trying to protect digital identity by simply unplugging from the Internet becomes impossible – a fact that has manifest implications for civil liberties, Saunders says.
By 2011 the number of Internet-connected sensors will exceed 1 trillion, making your chances of doing anything or going anywhere unnoticed pretty much zero. Saunders talks about how the 'sensortization' of the Internet is eliminating the traditional divide between online and offline populations.
The 20th Century Internet was characterized by the ability to interact with other people and information on the Internet largely without anyone knowing who you were. The Internet of this century, conversely, will be defined by identity. Saunders explains how Internet users are unwittingly contributing to the demise of the anonymous Internet.
New York's Metropolitan Transit Authority is conducting a pilot test of digital kiosks to guide subway users to where they want to go more efficiently and at lower cost.
Edmunds separates customers into segments based on the info it collects on its site and from partners, and uses that to push out custom content, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
The automotive website uses propensity modeling to target ads and customer registration forms, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
The automotive website uses propensity modeling of customer behavior to convert more site visitors into leads, says Brian Baron, director of business analytics, in an interview at the Predictive Analytics Innovation Summit.
New York's Metropolitan Transit Authority is conducting a pilot test of digital kiosks to guide subway users to where they want to go more efficiently and at lower cost.
The whole Amazon.reader debate is a double-stupid. It's stupid to think that there's any e-book buyer who doesn't know Amazon's URL, and it was stupider to let ICANN launch the whole free-form TLD initiative to start with.
While NFC's original goal was to enhance mobile commerce applications, it is finding its way into a number of other uses, which is creating both opportunity as well as challenges for IT departments.
Enterprises would like to move to cloud computing but are hesitant because they are concerned about providers’ ability to secure company data. Here are some tips that help to ensure that if breaches occur, the business is not left holding the bag.
Edmunds separates customers into segments based on the info it collects on its site and from partners, and uses that to push out custom content, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
The automotive website uses propensity modeling to target ads and customer registration forms, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
Subsidized handsets, rather than locked handsets, should be the focus of regulators. We're not getting good deals, not fostering innovation, and weakening our power as buyers.
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