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California Governor Jerry Brown recently signed into law A.B. 370,1 which amends the California Online Privacy Protection Act2 (CalOPPA) to require certain operators of websites and other online services to disclose how they respond when a visitor’s web browser sends a “Do Not Track” signal. The bill also requires operators to disclose the data collection practices of certain third parties operating on the website or online service. Because this law affects every person or company that operates a website or online service that collects personally identifiable information from California consumers, it impacts companies beyond California’s borders. The law takes effect on January 1, 2014.
Continue Reading California Amends CalOPPA to Require Do-No-Track Disclosures

In early May, Theodore Moss, the CEO of online background-check provider Crimcheck.com, received a letter from the Federal Trade Commission (FTC) notifying him that “recent test-shopping contacts” had indicated that his company was possibly selling consumer information unlawfully.1 Crimcheck.com provides background-check services to businesses conducting employment screenings for potential job candidates.2 Such companies, often referred to as “data brokers,” collect and compile information on individual consumers, drawing from public sources such as court databases and consumer credit records to piece together profiles of individuals’ financial, retail, recreational, and criminal behaviors.3 But it is precisely that assembling of detailed information on individuals—even information compiled from public sources—that can trigger provisions of the Fair Credit Reporting Act, prompting the FTC to take a closer look at how these companies collect and use consumer information.
Continue Reading Policing Privacy: Undercover FTC Staff “Test-Shop” Data Brokers to Identify FCRA Violators

New Self-Regulatory Guidance Joins Other Privacy and Transparency-Related Considerations for Participants in the Mobile Ecosystem

On July 24, 2013, the Digital Advertising Alliance (DAA), comprised of the largest media and marketing trade associations in the U.S., released new guidance regarding mobile and other devices (Mobile Guidance).1 The Mobile Guidance explains how the DAA’s existing Self-Regulatory Principles for Online Behavioral Advertising (OBA Principles)2 and Self-Regulatory Principles for Multi-Site Data (MSD Principles)3 (together, the DAA Principles) apply to companies operating in the mobile ecosystem. It sets forth specific requirements for the collection and use of precise location information, as well as two new categories of data: “cross-app data” and “personal directory data.”
Continue Reading Digital Advertising Alliance Releases Guidance on the Application of Its Self-Regulatory Principles to the Mobile Environment

Mobile and social media marketing are on the rise.1 With that in mind, the Federal Trade Commission issued new guidance for advertisers on how to make effective mobile and other online disclosures. Entitled “.com Disclosures: How to Make Effective Disclosures in Digital Advertising,”2 the guidance provides an update to the FTC’s 2000 publication on the same topic. The revised guidance is intended to address the expanding use of smart phones and social media marketing, where small screens and character limitations pose challenges for companies making advertising claims.3 Although the guidance itself is not law, the FTC cautions that these disclosures are required by the laws it enforces.
Continue Reading FTC Issues New Guidance for Disclosures in Online Advertising