Privacy and Consumer Transactions

Question 1

US general approach to consumer privacy

Answer 1

i. Businesses are generally allowed to aggregate and collect and process consumer data
ii. More laws against the dissemination
iii. Businesses can gather and sort without laws saying anything
iv. Basic approach - notice and choice
1. The FTC has sought to focus on standardizing privacy disclosures and increasing their readability
2. Consumers can supposedly choose services and where to put their info
3. FTC primarily concerned that consumers don’t understand their choices
4. FTC approach encourages companies to have clear disclosures of privacy policies

Question 2

what are privacy policies

Answer 2

mm. Located on bottom screen and linked - Click to accept terms of use -> Creates something similar to contract and are usually very long
nn. Online privacy policies are there because increases in legislation requiring disclosure and as a voluntary measure to appeal to consumers to emphasize the care that they have for consumers

Question 3

pros and cons of notice and choice

Answer 3

qq. Pros: of self-regulation of creating these privacy policies
i. Company does not have to deal with govt in this regulation
ii. Self-regulation is least intrusive
ss. Cons:
i. Assuming that theres a choice
ii. Too many privacy policies to keep track of

iii. Efficient
iv. In lieu of a statute there is self-regulation
v. Substitute for more specific regulation (which can be more strict)
rr. Pros: of notice and choice
i. Seen as regulatory tool that is simple
ii. Easier to enforce
iii. Individual autonomy
1. With proper notice, individuals can compare services based on their own info purposees
iv. Resembles - disclosures in TILA
v. Doubling down on disclosure laws