FTC Approves Final Settlement over Consumer Tracking, Fails to Enforce FIPs or Suggest Best Practices for Anonymization

The Federal Trade Commission adopted a proposed settlement with Compete, Inc., over allegations that Compete failed to adopt reasonable data security practices and deceived consumers about the amount of personal information that its toolbar and survey panel would collect. The FTC also charged Compete with deceptive practices for falsely claiming that the data it kept was anonymous. The settlement requires Compete to obtain consumers' express consent before collecting any data through its software, to delete personal information already collected, and to provide directions for uninstalling its software. In comments to the agency, EPIC recommended that the FTC also require the Compete to implement Fair Information Practices similar to those contained in the Consumer Privacy Bill of Rights, and develop a best practices guide to de-identification techniques. The FTC declined to adopt EPIC’s recommendations, stating that it "does not provide specific technical guidance in areas like [anonymization], which are constantly changing," and "may not impose additional obligations that are not reasonably related to such conduct or preventing its recurrence." For more information, see EPIC: Federal Trade Commission and EPIC: Re-Identification.

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