Brief

Summary:

The Federal Trade Commission (FTC) has released its Privacy and Data Security Update for 2023, highlighting its work to protect consumer privacy and respond to the evolving ways companies use consumer data. The update details the FTC's actions in key areas, including:

1. Artificial Intelligence: The FTC has brought enforcement actions related to the collection and use of personal information to develop or deploy machine learning algorithms, such as the case against Amazon Alexa for violating the Children's Online Privacy Protection Act (COPPA).
2. Health Privacy: The FTC has taken action to protect the privacy and security of consumers' sensitive health information, including banning BetterHelp from sharing health data with third parties and requiring GoodRx to pay a civil penalty for violating the Health Breach Notification Rule.
3. Children's Privacy: The FTC has worked to protect children's privacy through COPPA enforcement, including cases against Amazon, Epic Games, and Edmodo.
4. Geolocation Data: The FTC has taken action to protect sensitive location data, including suing data broker Kochava Inc. for selling geolocation data that can be used to trace individuals' movements.
5. Data Security: The FTC has targeted companies that fail to implement reasonable data security measures, bringing enforcement actions against Global Tel*Link, Drizly, Chegg, and CafePress.
6. Fair Credit Reporting Act: The FTC has brought cases against companies that fail to ensure the accuracy of tenant screening reports, including an action against Trans Union LLC and a subsidiary.

The FTC has also engaged in rulemaking and policy work to establish baseline standards that protect consumers' privacy.

Enforcement

We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices.

View Enforcement

,

Search or browse
the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

,

Take action

,

Competition Matters

,

,

Policy

We work to advance government policies that protect consumers and promote competition.

View Policy

,

Search or browse
the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

,

Take action

,

Technology Blog

,

The Office of Technology

,

,

Advice and Guidance

Learn more about your rights as a consumer and how to spot and avoid scams. Find the resources you need to understand how consumer protection law impacts your business.

,

Take action

,

Consumer Advice

,

Business Guidance

,

Servicemembers:
Your tool for financial readiness

Visit militaryconsumer.gov

,

Get consumer protection basics, plain and simple

Visit consumer.gov

,

Learn how the FTC protects free enterprise and consumers

Visit Competition Counts

,

Looking for competition guidance?

Competition Guidance

,

News and Events

,

,


,

Sign up for the latest news

Follow us on social media

         

,

About the FTC

Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.

Learn more about the FTC

,

Looking for legal documents or records? Search the Legal Library instead.

,

Looking for legal documents or records? Search the Legal Library instead.

,

For Release

,

The update details agency actions related to AI, health privacy, and other key areas

,

,

The Federal Trade Commission released its Privacy and Data Security Update for 2023 that highlights the FTC’s work to protect consumer privacy and respond to the evolving ways that companies use consumer data such as in the development of artificial intelligence models and misuse of health data.

“The FTC is taking bold actions to challenge the indiscriminate collection and monetization of consumers’ data,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We are securing meaningful remedies to protect consumers’ information, rather than placing the burden on consumers to protect themselves.”

The publication highlights the FTC’s privacy and data security work in the last few years. Through 2023, the FTC has brought 97 privacy cases and 169 Telemarketing Sales Rule and CAN-SPAM cases since 1999, as well as 89 data security cases. In addition to its law enforcement work, the agency also has engaged in rulemaking and policy work to push companies to bolster privacy protections for consumers and implement safeguards to secure consumer data.

Between 2021 and 2023, the FTC has taken action to address privacy and security threats in several key areas including:

  • Artificial Intelligence: The FTC has brought a number of enforcement actions related to the collection, retention, or use of consumers’ personal information to develop or deploy machine learning or similar algorithms. For example, the FTC alleged that Amazon Alexa violated the Children’s Online Privacy Protection Act (COPPA) by indefinitely retaining children’s voice recordings, which it used to improve its speech recognition algorithm. Last year, the agency also brought a case against Rite Aid over charges it failed to take reasonable steps to ensure that the AI facial recognition technology it deployed in its retail stores did not erroneously flag people as shoplifters or other wrongdoers.
  • Health Privacy: Protecting the privacy and security of consumers’ sensitive health information has long been a top FTC priority. Last year, the FTC gave final approval to an order banning BetterHelp, an online counseling service, from sharing sensitive health data for advertising with Facebook and other third parties and requiring it to pay $7.8 million to provide partial refunds to consumers. Also in 2023, the FTC banned GoodRx from sharing sensitive health data with applicable third parties for advertising and also required the company to pay a civil penalty for violating the Health Breach Notification Rule, the agency’s first action under the rule.
  • Children’s privacy: The FTC also has worked vigorously to protect children’s privacy through its enforcement of COPPA. In addition to the FTC’s action against Amazon, the agency has brought several other COPPA-related actions including cases involving major gaming companies and education technology providers. For example, the FTC obtained a record $275 million penalty against Fortnite maker Epic Games, which also was required to adopt strong privacy default settings for both children and teens and other protections, and brought an action against ed tech provider Edmodo for using children’s personal information for advertising in violation of COPPA and outsourcing its responsibilities under COPPA to schools. In late 2023, the FTC also proposed key changes to strengthen and update the COPPA Rule that would further limit the ability of companies to condition access to services on monetizing children’s data.
  • Geolocation Data: As with health data, location data can reveal highly sensitive information about people by tracking their visits to such places as reproductive health clinics, houses of worship, and domestic violence shelters. Given this, the FTC has taken action to protect such data. In 2022, the FTC sued data broker Kochava Inc. for selling geolocation data from hundreds of millions of mobile devices that can be used to trace the movements of individuals to and from sensitive locations.

The FTC also has remained active in targeting companies that fail to implement reasonable data security measures to protect consumer data. In 2022 and 2023 alone, the FTC announced or finalized enforcement actions against Global Tel*Link, DrizlyChegg, and CafePress for data security failures.

The agency also has worked to ensure companies comply with the Fair Credit Reporting Act, which sets out requirements for companies that use data to determine creditworthiness, insurance eligibility, suitability for employment, and to screen tenants. The FTC has brought 117 FCRA cases and obtained more than $137 million in civil penalties. This includes a 2023 action that the FTC and Consumer Financial Protection Bureau brought against Trans Union LLC and a subsidiary for failing to ensure the accuracy of tenant screening reports by including inaccurate and incomplete eviction records about consumers, hampering their ability to obtain housing.

In addition to vigorous enforcement, the FTC has engaged in rulemaking and other policy work to establish baseline standards that protect consumers’ privacy. In the past few years, the Commission has proposed rules to clarify the applicability of the Health Breach Notification Rule to health apps, and strengthen COPPA. It has also issued an advanced notice of proposed rulemaking to explore rules that would crack down on harmful surveillance and lax data security, and published a policy statement that makes clear that is against the law for companies to force parents and schools to surrender their children’s privacy rights to be able to learn remotely.

The lead staffer on this update was Katherine McCarron in the FTC’s Bureau of Consumer Protection.

,

The Federal Trade Commission works to promote competition and protect and educate consumers.  The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

,

Office of Public Affairs

,

202-326-2924

Highlights content goes here...

Communication enables
Collaboration internal, cybersecurity "Lookup>consumer security Authentication

Federal Trade Commission

Quick Insight
RADA.AI
RADA.AI
Hello! I'm RADA.AI - Regulatory Analysis and Decision Assistance. Your Intelligent guide for compliance and decision-making. How can i assist you today?
Suggested

Form successfully submitted. One of our GRI rep will contact you shortly

Thanking You!

Enter your Email

Enter your registered username/email id.

Enter your Email

Enter your email id below to signup.

Enter your Email

Enter your email id below to signup.
Individual Plan
$125 / month OR $1250 / year
Features
Best for: Researchers, Legal professionals, Academics
Enterprise Plan
Contact for Pricing
Features
Best for: Law Firms, Corporations, Government Bodies