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LawCrossing Legal Daily News Feature
FTC Wants Internet Data Trading Regulated for Transparency by Surajit Sen Sharma
On Monday, the Federal Trade Commission requested Congress to formulate Internet privacy laws that would compel data traders and brokers to reveal the nature of the data on consumers that they are into sale and purchase. FTC has submitted an in-depth report that includes suggested measures like self-regulation by businesses, but did not come out in support of laws mandating anti-tracking buttons. The FTC report follows the trend of suggestions made by the White House last month and reaffirms the consensus that stronger regulations are needed to protect the online privacy of consumers and internet users.
03/27/12
like Lexis Nexis and Choicepoint – who acquire data that has been collected online and merge the same with
The FTC has been active over
offline documents to create reports upon consumers.
the past couple of years in cornering social media giants over abusive use of user
The report mentioned that the brokers “sell a wealth of
data. Companies like Google and Facebook have come
highly personal information about consumers but never
under heavy scrutiny and applications in new platforms
interact directly with them … Consumers are often
like the iPhone and iPad have been found abusive of
unaware of the existence of these entities, as well as
user rights and reprimanded.
the purposes for which they collect and use data.”
However, instead of resentment, internet data traders
According to the FTC, a consumer should have
are actually desirous of having the suggestions of
discretion and control over the publication of his/her
FTC passed, as it would then assure them of the legal
data portraits published by agencies not authorized
standings of their own activities – what they can and
to do so by the consumer. The FTC also suggested
cannot do. Right now, most internet data traders
strongly that data brokers be compelled to reveal their
and brokers are unsure of the issues surrounding
practices and methods of data-collection.
their business activities, and firm and transparent regulations in place would assure them of the limits to
The Digital Advertising Alliance, representing the
which they may use consumer data.
biggest majority of Web advertisers, has promised to offer anti-tracking icons by the end of this year, and to
As FTC Chairman Jon Leibowitz told the media during
work with the Commerce Department, FTC and private
a news conference, the FTC wanted “no to erect a stop
advocates to create the technology.
light, (but to) take a closer look at traffic patterns.” But the FTC has warned that if businesses do not come The FTC report focused heavily on the need for
up with self-regulatory mechanisms within the year
companies to be transparent about their methods of
then it would push for laws. While the FTC has little
data collection and the use of the collected data. The
power to create laws, it has the authority to enforce
report also asked for specific legislation on data brokers
laws set by the Congress. And they are serious.
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