FTC Gets Serious About Online Privacy In The United States

FTC Sets Its Focus On Online Privacy

The Federal Trade Commission recently adopted a tough position on digital privacy and the rights of Internet users. This comes in the wake of accusations by the FTC that Internet giants Google and Facebook routinely violate the online privacy policies to which they supposedly adhere. With newly reappointed Chairman Jon Leibowitz heading the commission, both companies will have to undergo formal privacy reviews for the next 20 years. The tough new stance comes in the wake of the FTC’s anticipated March report, which finally established benchmarks that spell out a person’s rights in this digital era.

FTC Meeting With Big Internet Players About Online Privacy Concerns

Leibowitz also met with Mozilla, Square and several other high-tech firms in the San Francisco region last week. During a press conference, he said he believed that the majority of computer users have strong opinions regarding their online privacy. He also said people don’t realize how online companies gather their personal information, how they distribute the data or how they profit from the personal details they capture.

New Standard Suggestions Go Further Than Consumer Privacy Bill of Rights

The new policy takes the Consumer Privacy Bill of Rights one step further by requiring companies to reveal their data collection methods and the way the information is used. Furthermore, these companies must offer users easy ways to prevent data collection. The FTC also wants Congress to enact legislation defining an individual’s online rights to privacy. Because this is an election year, Congress is not likely to comply with the request.

FTC Can’t Pass Online Privacy Laws; But They Can Punish Online Privacy Usurpers

Although the FTC cannot pass their own laws, they can punish companies that use injurious, deceitful methods that have the potential to negatively affect commerce. Many feel voluntary privacy compliance has proven inadequate. This is evidenced by revelations regarding several companies gathering, disseminating and selling personal data without users’ knowledge. For example: Facebook applications have been found to distribute data to advertisers; smart phones have fell pray to Path social-networking software; Google and various advertisers have even figured out a way to bypass the privacy barriers in the Safari browser.

Google’s Current FTC Online Privacy Problem

Google may have already violated a previous agreement with the FTC. Although Leibowitz wouldn’t speak directly to that point, he did say that such privacy piracy affects the public’s perception of online businesses. In an information age where data is so widely available, it’s critical to protect personal data and the privacy of unsuspecting users. He further stated that companies can have acceptable security safeguards in place, but they could still be compromised.

Do-Not-Track Online Privacy Provisions On The Way

The report approves some industry activity toward an opt-out solution to the problem. The World Wide Web Consortium has put together a group of IT professionals to create proper rules for a do-not-track system. The system would be similar to the do-not-call registry that prevents telemarketing to households who have chosen to not participate. Instead of merely ceasing to send targeted advertising, the FTC wants companies to stop gathering data on those individuals who choose the opt-out feature.

Leibowitz seemed sure there would eventually be a do-not-track system that ends directed ads to people who don’t want them. Google and the Digital Advertising Alliance have agreed to implement do-not-track technology, but their efforts are not as robust as what the FTC would like to see. Leibowitz believes the industry is not avoiding a do-not-track system; the fact that companies are voluntarily working toward that end is a meaningful gesture.

Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/04/26/BUCM1O9JSU.DTL