The FTC Announces Settlement with Web Tracking Company
The FTC announced yesterday that it has settled a case filed against market research company Compete, Inc., on the grounds that it deceived consumers and failed to safeguard consumers’ sensitive data. If accepted, the settlement would resolve a Federal Trade Commission complaint charging Compete with deceiving users by failing to reveal its broad data collection practices, and it would hold Compete from misrepresenting its data collection and security practices in the future and lock the company into biennial audits for the next 20 years.
FTC’s settlement outlines the charges against Compete for distributing software, including a browser toolbar, that offered users the chance to learn about the Web sites they visited, without providing a fair and full disclosure of “the full extent of data collected through tracking software.” In bringing the case, the FTC alleged that the collection of data such as credit card numbers, security codes, expiration dates, SSNs, and other information entered by consumers at various web sites , without adequate notice, constitutes a “deceptive” practice and therefore covered by the Commissions Sec. 5 authority. The case also charged Compete on a range of data security failures, including failure to remove PII before transmitting and failure to provide reasonable and appropriate data security and failure to design and implement reasonable safeguards to protect consumers’ data; and failed to use readily available measures to mitigate the risk to consumers’ data.
As always, FTC settlements provide parameters for companies regarding practices that are NOT acceptable to federal privacy regulators under current law.
SIIA Testifies Before NY Education Reform Commission, Calls for Personalized Learning through Technology
On Oct. 16, Mark Schneiderman testified before the New NY Education Reform Commission, a group appointed by NY Governor Andrew Cuomo to study and make recommendations for the reform and improvement of the state’s education system. In his testimony, Mark submitted a comprehensive vision for redesigning education to personalize learning through technology and made dozens of recommendations around each of the Commission’s seven proposed objectives. In general, SIIA agrees with the Commission that, Future generations of students cannot compete unless we dramatically reform our education system. Read more on SIIAs Digital Discourse Blog.
SIIA Rebuts NYT Enviro. Criticism of Cloud Computing Data Centers
Last week SIIA provided a rebuttal to James Glanz’s recent New York Times series on the perceived energy waste of data centers. The rebuttals focused on three key reasons why cloud computing is actually good for the environment. First, large data centers are more efficient than distributing the same computing power over many more small or medium-sized centers. Second, the transition to tablets and smartphones equipped with cloud computing access means less energy needs for devices. Finally, companies like Oracle, Adobe, and IBM are devoting their considerable resources to sustainable computing practices, and this trend will only increase as they continue to work to make data centers more efficient and clean. While green practices must be taken into consideration as our society becomes increasingly dependent on technology, pointing the finger at data centers is looking at cloud computing from the wrong perspective. Read more on SIIAs Digital Discourse Blog.
Mobile App. Transparency Discussion Moves to Substance
As we had anticipated and hoped, the NTIA-led multistakeholder discussion on mobile app. transparency did indeed take a turn to substantive discussion after months of talking around the edges and broad disagreement between consumer groups and industry. In what was stark contrast to previous meetings, the discussion last Tuesday led to significant agreement around process and foundation for defining what types of information collection require transparency, beginning a discussion based on existing examples of what a “short form” notice might look like, and even a tentative agreement on what a “mobile app.” means in this context. Of course, it was just one meeting, and the agreement was around mainly process and vague examples and definitions, but it was quite encouraging none the less. SIIA is continuing actively participating on the working groups on behalf of members and the industry.
David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy.