In today’s digital age, protecting your privacy and personal data is more important than ever.
With companies collecting vast amounts of consumer information for various purposes, including the development of artificial intelligence (AI) models and targeted advertising, it is crucial to stay informed about your rights and the steps being taken to safeguard your data.
The Federal Trade Commission (FTC) recently released its Privacy and Data Security Update for 2023, highlighting the agency’s efforts to protect consumer privacy and respond to the evolving ways companies use consumer data.
The FTC’s Commitment to Consumer Privacy Protection
The FTC has been at the forefront of protecting consumer privacy and data security. In the words of Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, “The FTC is taking bold actions to challenge the indiscriminate collection and monetization of consumers’ data. We are securing meaningful remedies to protect consumers’ information, rather than placing the burden on consumers to protect themselves.”
Through 2023, the FTC has brought 97 privacy cases, 169 Telemarketing Sales Rule and CAN-SPAM cases, and 89 data security cases.
The agency has also engaged in rulemaking and policy work to push companies to strengthen privacy protections for consumers and implement safeguards to secure consumer data.
Key Areas of FTC Action (2021-2023)
1. Artificial Intelligence (AI)
The FTC has taken enforcement actions related to the collection and use of consumers’ personal information in the development of AI and machine learning algorithms.
For example, the agency alleged that Amazon Alexa violated the Children’s Online Privacy Protection Act (COPPA) by indefinitely retaining the voice recordings of children to improve its speech recognition algorithm.
The FTC also brought a case against Rite Aid for failing to ensure its AI facial recognition technology did not erroneously flag people as shoplifters or wrongdoers.
2. Health Privacy
Protecting the privacy and security of consumers’ sensitive health information is a top FTC priority. In 2023, the FTC banned online counseling service BetterHelp from sharing sensitive health data for advertising and required the company to pay $7.8 million in partial refunds to consumers.
The agency also took action against GoodRx for sharing sensitive health data with third parties for advertising and violating the Health Breach Notification Rule.
3. Children’s Privacy
The FTC has worked to protect children’s privacy through its enforcement of the Children’s Online Privacy Protection Act (COPPA). In addition to the action against Amazon, the agency has brought cases against major gaming companies and education technology providers.
For example, the FTC obtained a record $275 million penalty against Fortnite maker Epic Games and required the company to adopt strong privacy default settings for children and teens.
4. Geolocation Data
Location data can reveal highly sensitive information about individuals, such as visits to reproductive health clinics, houses of worship, and domestic violence shelters.
In 2022, the FTC sued data broker Kochava Inc. for selling geolocation data from hundreds of millions of mobile devices that could be used to trace the movements of individuals to and from sensitive locations.
Enforcement of the Fair Credit Reporting Act
The FTC has also enforced provisions of the Fair Credit Reporting Act (FCRA), which sets out requirements for companies that use data to determine creditworthiness, insurance eligibility, suitability for employment, and tenant screening.
The agency has brought 117 FCRA cases and obtained more than $137 million in civil penalties.
In 2023, the FTC and Consumer Financial Protection Bureau (CFPB) took action against Trans Union LLC and a subsidiary for failing to ensure the accuracy of tenant screening reports, which in turn hampered consumers’ ability to obtain housing.
FTC’s Rulemaking and Policy Work
In addition to enforcement actions, the FTC has engaged in rulemaking and policy work to establish standards for consumer privacy protection.
The agency has proposed rules to clarify the applicability of the Health Breach Notification Rule to health apps and strengthen COPPA.
It has also issued an advanced notice of proposed rulemaking to explore rules that would crack down on harmful surveillance and lax data security.
The FTC’s 2023 Privacy and Data Security Update underscores the agency’s commitment to protecting consumer privacy and holding companies accountable for their data practices.
As a consumer, it is essential to stay informed about your rights and take steps to protect your personal information.
By staying vigilant and reporting any suspected privacy violations or data breaches to the FTC, you can help create a safer, more secure digital environment for everyone.