Ftc Report Details Best Practices Regarding Website Legal Documents For Privacy

On March 26, 2012, the Federal Trade Commission (FTC) issued its final report titled

"Protecting Consumer Privacy in an Era of Rapid Change: Recommendations For Businesses and Policymakers". The report targets website legal documents and Internet business practices related to consumer privacy.

The final report details best practices which seem to be merely recommendations for privacy-related website legal documents. However, a dissent by one of the FTC Commissioners stated that it would be a mistake to assume that the report's recommendations are "voluntary", stating that Internet marketers that do not comply with the report's "best practices" may "face the wrath of the [FTC]".

The Best Practices

The final report has been in the works for two years, and it expands on a preliminary staff report issued in December, 2010. The recommended best practices fall into the following three areas.

* Privacy By Design. The basic purpose of Privacy By Design according to the FTC is to promote consumer privacy throughout organizations and at every stage of the development of their products and services. This means that Internet companies should incorporate substantive privacy protections into their practices, such as data security, reasonable collection limits, sound retention practices, and data accuracy. The key is that the incorporation process should begin in the initial design phase, not after the completion of a website or online service.

* Simplified Choice For Businesses and Consumers. Consumer choice should be provided at a time and in a context in which the consumer is making a decision about his or her data. This does not mean that choice is required for commonly accepted practices such as product fulfillment. However, this does mean that consumers should be provided with a choice regarding what information is shared about them and with whom. In addition, choice should include a Do-Not-Track mechanism that would provide a simple and easy way to control tracking of a consumer's online activities.

* Greater Transparency. Privacy notices should be clearer, shorter, and more standardized, to enable better comprehension and comparison of privacy practices. Consumers should be provided with reasonable access to consumer data collected. In short, collection and use practices should be transparent.

The FTC recognized that small Internet companies should be exempted from the "one size fits all" best practices, as evidenced by the exemption for Internet companies that collect only non-sensitive data from fewer than 5,000 consumers a year, provided they don't share the data with third parties.

The Proposed Privacy Framework

In addition to the best practices, the FTC proposed a privacy framework focusing on the following five objectives to be pursued by the FTC in the near future.

* Do-Not-Track. Work with various groups to implement an easy-to-use Do-Not-Track system.

* Mobile Services. Host a workshop to address how mobile privacy disclosures can be short, effective, and accessible on the small screens of mobile devices.

* Data Brokers. Invite data brokers to establish a centralized website to identify themselves and to disclose how data is collected and used.

* Large Platform Providers. The focus will be on tracking of consumers' online activities by large platform providers including Service Providers and providers of operating systems, browsers, and social media.

* Promoting Enforceable Self-Regulatory Codes. Develop industry-specific codes of conduct.

The proposed privacy framework has already sparked controversy. One of the FTC Commissioners who voted against the report indicated concern over the report's transition from regulating "deceptive practices" which is authorized under the FTC Act to "unfairness" which is not expressly authorized.

Conclusion

The final report does not change the structure of the recommendations proposed by the FTC in its initial report in 2010; however, it does provide more guidance for Internet marketers regarding the implementation of website legal documents for privacy that can avoid expensive legal proceedings.

And the dissent filed by one of the Commissioners makes it clear that Internet marketers who fail to comply do so at their peril.

This article is provided for educational and informative purposes only. This information does not constitute legal advice, and should not be construed as such.

by: Chip Cooper

POST COMMENT

James Frederick Tenney Attorney Offers Legal Counsel In Atlanta Getting Legal Representation From Westport Ct Tax Attorneys Using Your Legal Billing Software To Maintain Advance Retainer Deposits Spy Camera High Definition Gets The Authentic Evidence For Illegal Behavior Understanding The Way Legal Costs Are Calculated Your Criminal Defense Legal Practitioner In Los Angeles Should Preferably Belong Within The State Ba Deceptive Website Legal Forms Result In $359 Million Ftc Settlement Legal Billing Software That Does It All? Easy! How To Get The Best Legal Solution Over The Web Seeking Legal Assistance When Pursuing Hip Replacement Compensation Affordable Legal Documentation By A Paralegal Service Provider In Orange Safeguarding Against Legal Transgressions When Looking At Rentals In Dubai Theresa Sowinski Has Expertly Managed Legal Affairs For Clients