Last week, FTC Chairman Jon Leibowitz testified before the U.S. Senate Committee on Commerce, Science, and Transportation about the FTC’s efforts to protect consumer privacy. The testimony detailed the FTC’s consumer privacy program over the past few decades, focusing on data security enforcement, identity theft, children’s privacy, and protecting consumers from unwarranted intrusions such as spam and spyware.
Liebowitz highlighted the FTC’s recent attempts to re-examine consumer privacy protection in light of rapidly evolving new technologies. Over the past two decades, the Commission has used two main policy approaches towards protecting consumer privacy: (1) promoting the fair information practices of notice, choice, access and security; and (2) protecting consumers from specific and tangible privacy harms. The testimony briefly discussed the limitations of these traditional models of enforcement in adequately protecting privacy in light of rapid developments in technology. The testimony noted that these policy approaches may place too heavy a burden on consumers to read and understand complex privacy policies. Liebowitz also noted that the they may place too strong an emphasis on financial and other tangible harms from exposure of private information.
This past winter, the FTC held a series of roundtables to explore the privacy challenges posed by emerging technology (see here and here). A number of concerns were raised during the roundtables, notably that most consumers do not understand the extent to which companies are collecting and using their personal information as well as the limitations of the FTC Fair Information Practices model which places a heavy burden on consumers to read and understand lengthy privacy policies.
Moving forward, the FTC indicated that it will be focused on the following areas:
- integrating privacy into business practices;
- simplifying consumer choices about commercial data practices; and
- improving transparency.
The Commission’s testimony coincided with Rite Aid Corporation’s agreement to settle with the FTC over charges that it failed to protect sensitive financial and medical information of its customers and employees.
- Nancy Perkins and Tiana Russell
