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Tag Archives for " FTC "

FTC Remedial Power Under Scrutiny at U.S. Supreme Court

On Wednesday, January 13, the Supreme Court heard arguments in AMG Capital Management LLC v. Federal Trade Commission.

This case raises the question whether the Federal Trade Commission (FTC) has been properly using Section 13(b) of the FTC Act, the provision authorizing requests for preliminary and permanent injunctions where the FTC believes the defendant “is violating, or is about to violate, any provision of law enforced by the Federal Trade Commission,” to obtain monetary relief such as disgorgement or restitution.

Source: FTC Remedial Power Under Scrutiny at U.S. Supreme Court

FTC Orders Photo App to Delete Algorithms Built on Personal Data

The Federal Trade Commission has reached a settlement with Everalbum, Inc., a California-based developer of a photo storage app, on allegations that it deceived consumers about its use of facial recognition technology and its retention of the photos and videos of users who deactivated their accounts.

The proposed order requires the company to delete the facial recognition technologies it illegally developed using the photos and videos uploaded by its users. The company allowed some Ever app users—those located in Illinois, Texas, and Washington state —to choose whether to turn on the face recognition feature, while it was automatically active for all other users and could not be turned off.

Source: FTC Orders Photo App to Delete Algorithms Built on Personal Data

FTC launches sweeping privacy study of top tech platforms

The Federal Trade Commission is launching a new inquiry into the privacy and data collection practices of major tech firms including Amazon, TikTok owner ByteDance, Twitter, YouTube and Facebook as well as its subsidiary WhatsApp.

The agency wants much of the usage and engagement data the platforms collect on their users, the metrics they use for measuring such things and short- and long-term business strategies, among many other areas of inquiry.

Source: Scoop: FTC launches sweeping privacy study of top tech platforms – Axios

Zoom lied to users about end-to-end encryption for years, FTC says

Zoom has agreed to upgrade its security practices in a tentative settlement with the Federal Trade Commission, which alleges that Zoom lied to users for years by claiming it offered end-to-end encryption.

The FTC complaint says that Zoom claimed it offers end-to-end encryption in its June 2016 and July 2017 HIPAA compliance guides, which were intended for health-care industry users of the video conferencing service. Zoom also claimed it offered end-to-end encryption in a January 2019 white paper, in an April 2017 blog post, and in direct responses to inquiries from customers and potential customers, the complaint said.

Source: Zoom lied to users about end-to-end encryption for years, FTC says | Ars Technica

Court approves Facebook’s $5 Billion Privacy Settlement

A judge approved Facebook Inc.’s $5 billion settlement with the Federal Trade Commission over privacy violations, the agency says—overruling objections that the deal didn’t adequately punish the company.

Judge Timothy Kelly of the U.S. District Court for the District of Columbia greenlighted the deal reached last summer, which included the $5 billion fine, restrictions on some aspects of Facebook’s business decisions, and ongoing oversight of the social media giant.

Source: Facebook’s $5 Billion Privacy Settlement Wins Court Approval – WSJ

FTC Cautions Against Biased Outcomes in Use of AI and Algorithms

As the healthcare and financial impacts of COVID-19 continue to evolve with the global pandemic, the use of AI technology and associated risks have received greater attention.

On April 8, 2020, the FTC posted an extensive summary of its recent enforcement actions, studies, and guidance regarding the use of AI tools and algorithms. The FTC expects the use of AI tools to be transparent, explainable, fair, empirically sound, and managed in a compliant and ethically accountable way.

Source: FTC Cautions Against Biased Outcomes in Use of AI and Algorithms

Facebook separates security tool from friend suggestions, citing privacy overhaul

Facebook will no longer feed user phone numbers provided to it for two-factor authentication into its “people you may know” feature, as part of a wide-ranging overhaul of its privacy practices, the company told Reuters.

Facebook initiated the updates in connection with its $5 billion settlement with the U.S. Federal Trade Commission, which required it to boost safeguards on user data to resolve a government probe into its privacy practices.

Source: Facebook separates security tool from friend suggestions, citing privacy overhaul – Reuters

US authorities impose $170m fine on YouTube for data privacy violation

YouTube has been hit with a record-breaking $170m (£139m) fine by regulators in the US for breaking children’s data privacy laws.

Authorities in New York will receive $34m of the landmark penalty. The Federal Trade Commission reached the settlement with Google, YouTube’s owner, after the video-streaming site was deemed to have collected data on children under the age of 13 without parental consents being in place, leading to youngsters receiving targeted advertising online.

Source: #privacy: USA authorities impose $170m fine on YouTube for data privacy violation

YouTube Said to Be Fined Up to $200 Million for Children’s Privacy Violations

The Federal Trade Commission has voted to fine Google $150 million to $200 million to settle accusations that its YouTube subsidiary illegally collected personal information about children, according to three people briefed on the matter.

The case could have significant repercussions for other popular platforms used by young children in the United States.

The settlement would be the largest civil penalty ever obtained by the F.T.C. in a children’s privacy case. It dwarfs the previous record fine of $5.7 million for children’s privacy violations the agency levied this year against the owners of TikTok, a social video-sharing app.

Source: YouTube Said to Be Fined Up to $200 Million for Children’s Privacy Violations – The New York Times

Company Will Pay $30 Million to Settle FTC Charges it Used Deceptive Lead Generators

An Illinois-based operator of several post-secondary schools will pay $30 million to settle Federal Trade Commission charges that the operator used sales leads from lead generators that falsely told consumers they were affiliated with the U.S. military, and that used other unlawful tactics to generate leads.

In addition to falsely representing that its schools were affiliated with or recommended by the military, CEC’s lead generators also induced consumers to submit their information under the guise of providing job or benefits assistance.

“You can’t skirt the law by outsourcing illegal conduct to your service providers,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “This case demonstrates that the FTC will seek to hold advertisers liable for the deceptive or illegal practices of their affiliates, publishers, or other lead generators. We expect companies purchasing leads to implement strong vendor management programs and stay on the right side of the law.”

Source: Operator of Colorado Technical University and American InterContinental University Will Pay $30 Million to Settle FTC Charges it Used Deceptive Lead Generators to Market its Schools | Federal Trade Commission

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