The Federal Trade Commission continues to push its “privacy by design” consumer protection policy as “big data” remains in the national spotlight. “Big data” is used to refer to advancing technologies that are dramatically expanding the commercial collection, analysis, use, and storage of data.
The FTC was among parties that recently weighed in on big data issues as part of a Department of Commerce review of a two-year-old legislative proposal from the White House to beef up U.S. consumer privacy protections in the digital age. At issue in the review is whether the proposed legislation, a “privacy bill of rights” for consumers, effectively deals with the emergence of big data, which involves the rapid growth of tools that allow organizations to collect and analyze vast amounts of information on individuals.
With privacy by design, companies need to consider privacy concerns as products and services are being developed, instead of as an afterthought.
The FTC currently lacks authority to enforce privacy by design. However, the Commission has been actively promoting the concept as a best practice for U.S. businesses. In addition, companies such as Facebook Inc. and Google Inc. now are required to implement privacy by design as a condition of settlements resolving data privacy cases brought by the Commission under Section 5 of the FTC Act, which prohibits “unfair and deceptive” trade practices.
Comments filed by the U.S. Chamber of Commerce said that policy makers should “restrain from acting unless there are specific, identified harms that cannot be addressed adequately by the current multi-layered approach toward privacy in the United States.”
Meanwhile, the Commerce Department’s National Telecommunications and Information Administration (“NTIA”) solicited public feedback in June on questions related to the White House proposal in light of the emergence of big data.
The NTIA process stems from a May 1 White House report calling for the Commerce Department to draft legislative language for the proposed privacy bill, after exploring big data issues through a public comment process.
The proposed legislation, as outlined in a 2012 White House paper, would give the FTC new authority to require U.S. businesses to abide by so-called fair information practice principles, such as being transparent about their data-collection practices and giving consumers the right to exercise control over their personal information.
The FTC also has called on Congress to pass general consumer privacy legislation. The FTC currently relies heavily upon the use of Section 5 to pursue data privacy and security actions. This approach is being challenged in closely monitored cases.
Today, the FTC announced an agenda for its upcoming “big data” workshop, taking place on September 15, 2014. The workshop will examine the use of big data and its impact on consumers, including low-income and underserved consumers. Panel discussion will examine the current uses of big data in a variety of contexts and how these uses impact consumers. The workshop will also include a review of various antidiscrimination and consumer protection laws, and discuss how they may apply to the use of big data.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.
