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Earlier this month, accompanying an update to a rule prohibiting the impersonation of businesses and governments, the FTC sought comments on extending the rule to prohibit impersonation of individuals. The agency indicated that it is considering expanding the rule as the result of rising complaints around “impersonation fraud,” especially those generated by AI. Comments are due by April 30, 2024.Continue Reading FTC Seeks Comments on AI Impersonation Rules

The FTC is beginning 2024 with a bang. Just a few short days after announcing a settlement with lead-generation company Response Tree, the FTC has announced another decision. In this latest announcement, the FTC has described this as its first settlement with data broker over the sale of sensitive information. According to the FTC, X-Mode Social, and its successor company Outlogic, LLC, tracked and sold to third parties precise location information, which information could identify if people visited “sensitive” locations like medical or reproductive clinics or domestic abuse shelters. This allegation is similar to that the agency made last year against Kochava, in a case that is still pending.Continue Reading FTC Continues Focus on Data Brokers and Sensitive Information

Continuing its focus on potential dark patterns, the FTC has reached a settlement with the lead generation company Response Tree LLC and its president over allegations that the company ran sites that tricked people into opting into receiving marketing calls. The FTC brought the case arguing that the company had violated both Section V of the FTC Act as well as the Telemarketing Sales Rule (or TSR, which implements TCFAPA).Continue Reading FTC Reaches $7 Million Settlement Over Response Tree’s “Consent Farm” Sites

The FTC recently announced a settlement with Global Tel*Link, a telecommunications company that contracts with prisons and jails to provide communication services to incarcerated individuals and their families. Those who use their services create accounts with the company and are required to provide not only usernames and passwords but also Social Security numbers and government ID numbers. The company also collects financial account information as well as names and addresses. The company included in its marketing materials promises about security, including that it was the “cornerstone of what we do.” The company also made promises about its security in RFPs to prisons and jails.Continue Reading FTC Decision with Global Tel*Link Signals Expectations for Use of Testing Environments

The FTC’s second attempt to pursue the data broker, Kochava, continues to move forward. The amended complaint, which was just unsealed and thus available for the public to review, gives insight into the agency’s perspective on the harm that results when companies create profiles with sensitive information, and use that information to target ads to individuals. The amended complaint provides more detail about Kochava’s alleged practices; allegations the company strongly disagreed with. (Thus, why it sought -unsuccessfully- to have it sealed.)Continue Reading Amended Kochava Complaint Gives Insight into FTC’s View of Harm from Data Profiles

The FTC recently amended the Safeguards Rule to make non-banking institutions such as mortgage brokers, motor vehicle dealers, and payday lenders notify the FTC as soon as possible, and no later than 30 days after discovery, of a security breach involving the information of at least 500 consumers. The FTC plans to provide an online form that will be used to report certain information, including the type of information involved in the security event and the number of consumers affected or potentially affected. The FTC’s Safeguards Rule also requires non-banks to develop, implement, and maintain a comprehensive security program to keep their customers’ information safe.Continue Reading Impact of FTC Safeguard Rules Amendment on Breach Notification Timing

The FTC continues its focus and concern on use of technologies that integrate artificial intelligence, this time turning to potential consumer harm with voice cloning technology. Today the commission announced a challenge looking for solutions to help monitor and prevent malicious voice cloning. In the announcement, the FTC pointed to current scams where threat actors use cloned voices -created using AI tools- to conduct scams. For example, money requests from a person’s “relative.” The winner will receive a $25,000 prize, and entries will be accepted in the first weeks of January.Continue Reading FTC Vocalizes AI Voice Cloning Challenge

As many who are keeping track of generative AI developments are aware, the FTC recently announced that it is investigating OpenAI’s ChatGPT product. For the privacy practitioner this investigation is important given that among other things, the agency wants to understand better how OpenAI is using personal information, and if its privacy representations are sufficient.Continue Reading OpenAI – FTC OpensAnInvestigation

The FTC and OCR at HHS are continuing to scrutinize the use of tracking technologies that may reveal information about a person’s health or health status. Both agencies recently sent a letter to a reported 130 hospitals and telehealth providers warning about the use of tracking technologies and the risks they pose. This follows on the heels of other statements, guidance, and enforcement actions from these regulators about these tools over the past two years.Continue Reading Regulators Send Warning Letter to Hospitals and Telehealth Providers About Tracking Technology Use