FTC explores sweeping new rules on data privacy and protection

The Federal Trade Commission is seeking public feedback on a proposed rulemaking to limit “commercial surveillance” by businesses that collect, sell, or share consumer information. The anticipated rules could potentially give the FTC the authority to levy fines for first-time violations of data privacy and security requirements.

In a 3-2 vote by the agency’s commissioners, the FTC decided to solicit comment on a wide range of concerns about how organizations “collect, aggregate, protect, use, analyze, and retain consumer data” and how they “transfer, share, sell, or otherwise monetize that data in ways that are unfair or deceptive.” Among other things, these concerns include lax data security, digital addiction in children, automated decision-making, algorithmic discrimination, and the use of “dark patterns” or marketing to coerce consumers into sharing personal information.

The deadline for submitting comments on the FTC’s Advance Notice of Proposed Rulemaking will be 60 days after the notice is published in the Federal Register in the coming days. For more information on today’s FTC announcement and how to respond, contact us via PrivacyGroup@dlapiper.com.