ADventures in Law

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On March 28, 2024, the FTC released its annual <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/2024.03.21-PrivacyandDataSecurityUpdate-508.pdf" target="_blank" rel="noreferrer noopener">Privacy and Data Security Update</a> (Update), which highlights the enforcement actions, guidance, and rules promulgated by the agency from 2021 through 2023 to protect consumer data and privacy. (Although this is an annual report, the FTC last issued it in <a href="https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-2020-privacy-data-security-update/20210524_privacy_and_data_security_annual_update.pdf" target="_blank" rel="noreferrer noopener">early 2021</a>).

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The Update shows that the FTC continues to focus its attention on companies’ and brands’ use and protection of (i) artificial intelligence (AI), (ii) children’s privacy, (iii) sensitive data, and (iv) spam calls and emails – all areas of interest for marketers and advertisers.

Below is a summary of several key categories featured in the Update:

Artificial Intelligence: The FTC remains focused on the potential harms that AI can have on consumers.&nbsp; The Update specifically highlights the enforcement actions the FTC has brought against companies for the improper collection, retention, and use of consumers’ personal information to develop and/or train AI.

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Children’s Privacy: Children’s privacy – specifically the agency’s enforcement of COPPA – continues to be an area of focus for the FTC, with enforcement actions brought against companies, including gaming and educational platforms for failure to protect children’s data. In December 2023, the agency also <a href="https://www.ftc.gov/news-events/news/press-releases/2023/12/ftc-proposes-strengthening-childrens-privacy-rule-further-limit-companies-ability-monetize-childrens" target="_blank" rel="noreferrer noopener">proposed changes to the rule</a> that would further limit companies’ ability to monetize children’s data.

Sensitive Data: The FTC continues to be vigilant about how companies use sensitive data collected from apps – including geolocation, health, and biometric data – and has brought enforcement actions against data brokers for failing to adequately protect and selling such sensitive information.

Spam Calls &amp; Emails: The Update highlights that violations of the Telemarketing Sales Rule and CAN-SPAM continue to be areas of interest for the FTC.

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The Update also mentions the pending <a href="https://www.ftc.gov/legal-library/browse/federal-register-notices/commercial-surveillance-data-security-rulemaking" target="_blank" rel="noreferrer noopener">rulemaking on commercial surveillance</a> and notes that “[c]omments closed in November 2022; staff is currently reviewing more than 10,000 comments.”

While the Update doesn’t provide any “new” information from the FTC, it is a good reminder that brands should continue to focus on protecting consumer data they collect and paying close attention to how that data is being shared and used.

FTC Releases Privacy and Data Security Update