Federal Trade Commission (FTC) Privacy Enforcement

Question 1

U.S. Privacy vs E.U. Privacy

Answer 1

Sectoral Approach vs Overarching Law

Question 2

FTC Enforcement

Answer 2

Section 5 prohibits: “Unfair or deceptive acts or practices in or affecting commerce

Question 3

Deception

Answer 3

1. An act (representation, omission, or practice)
2. the likelihood of a reasonable person’s deception
3. Materiality

Question 4

Types of deception actions

Answer 4

1. Broken promises of privacy
2. General deception
3. Insufficient notice
4. Data security

Question 5

Broken Promises of Privacy

Answer 5

1. Maintain confidentiality or refrain from disclosing information to third parties.
2. Collect data consistent with company’s privacy policy.
3. Provide adequate security for data.
4. Maintain anonymity.
5. Not disclose data to third parties in bankruptcy proceedings.

Question 6

Data Life Cycle

Answer 6

Collect-> Use-> Share-> Store/Secure

Question 7

Unfairness Test

Answer 7

1. Practice which causes or is likely to cause substantial injury to consumers…
2. which is not reasonably avoidable by consumers themselves and is…
3. not outweighed by countervailing benefits to consumers or to competition.

Question 8

Types of Unfairness Actions

Answer 8

1. Retroactive Changes
2. Deceitful Data Collection
3. Improper Use of Data
4. Unfair Design or Default Settings
5. Unfair Data Security Practices

Question 9

FTC Enforcement

Answer 9

FTC Investigation-> FTC Complaint-> Negotiation-> Settlement (FTC Consent Order) OR Admin Law Judge-> Full Commission-> Court of Appeals-> Supreme Court