On October 18, the CFPB sued a software company for utilizing their online payment platform to enroll unknowing consumers into annual subscriptions through deceptive acts and “dark pattern” techniques in violation of the CFPA and EFTA. Among other things, the complaint alleges that the company encouraged consumers to unknowingly enroll in free trials and converted the free trials into annual subscriptions through a “negative option” renewal policy (our sister blog covered “negative option” marketing in a previous post here). During this process, the company allegedly collected consumers’ registration information and consumer payments data (e.g., credit or debit card number) so that it could transmit the consumer payments data through its payments systems. 

Continue Reading CFPB Sues Payment Platform Over Dark Patterns

Companies who participate in the AdTech and digital advertising eco-system are very familiar with the Interactive Advertising Bureau and its form advertiser agreements. Those agreements can help streamline negotiations, presenting the parties with, essentially, a pre-negotiated approach to common issues. When CCPA was passed, IAB updated its form to address that law and address consumer notice and consent. With the upcoming laws in California, Colorado, Connecticut, Utah and Vermont, the document is now outdated.

Continue Reading IAB Steps In State Signal Morass

Beginning January 1, 2023, New York City will restrict employers from using artificial intelligence to make employment decisions unless they follow certain guidelines. The local law applies to employment decisions made “within the city” regarding job applicants and promotion decisions.

Continue Reading New York City Set To Regulate Employment Decisions Made By AI

The Digital Advertising Accountability Program, which enforces privacy principles for digital advertising, issued a compliance warning to advertisers regarding device fingerprinting. This warning is worth keeping in mind, since the “fingerprinting” practice is rising in more and more industries.
Continue Reading DAA Issues Warning On Device Fingerprinting

The FTC recently settled with a surveillance app operator over allegations that the company facilitated the secret harvesting of personal information. According to the FTC, the main users of Support King, LLC’s “SpyFone” app were bad actors who used the tool to remotely monitor users’ physical and digital activities. The FTC dismissed the company’s argument that the users were employers and parents as a “pretext.” It felt neither group would want to use the product, which to install required minimizing the device’s security settings and potentially voiding the device warranty.

Continue Reading FTC Surveillance App Settlement Signals Concern Over Deceptive Tracking

Baltimore recently prohibited several uses of “face surveillance” technology.  Under the new law companies cannot use systems that identify or verify individuals based on their face.  The law also prohibits saving information gathered from these systems.  Getting an individual’s consent is not a way around the prohibition. Nor is promising not to connect information gathered with other personal information.

Continue Reading Baltimore Blows By Brother Burghs with Big Biometrics Ban