FTC Warns Tax Preparation Companies About Misuse of Consumer Data

Summary:

The Federal Trade Commission (FTC) has sent notice to five tax preparation companies that they could face civil penalties up to $50,120 per violation if they misuse personal data collected for tax preparation purposes without consumers' consent. The companies are being warned against using confidential data for unrelated purposes such as advertising, without first obtaining consumers' consent. The FTC is using its penalty offense authority to remind companies of the law and deter them from breaking it. The agency has identified specific acts and practices that may be deceptive or unfair under the FTC Act, including the use of tracking technologies to amass, analyze, or transfer personal information without consent.