The FTC weighs in on customer data privacy

2 years ago 93

The Federal Trade Commission has announced that it volition see rules to destruct “harmful commercialized surveillance and lax information security.” The Advanced Notice of Proposed Rulemaking comes adjacent arsenic Congress works connected the American Data Protection and Privacy Act (ADDPA) which, if passed, would beryllium enforced by the FTC.

Commercial surveillance is defined arsenic the “business of collecting, analyzing, and profiting from accusation astir people” — a explanation arsenic wide arsenic thing contemplated by the ADPPA.

The FTC’s perspective. FTC Chair Linda M. Chan said successful a statement: “Firms present cod idiosyncratic information connected individuals astatine a monolithic standard and successful a stunning array of contexts. The increasing digitization of our system — coupled with concern models that tin incentivize endless hoovering up of delicate idiosyncratic information and a immense enlargement of however this information is utilized — means that perchance unlawful practices whitethorn beryllium prevalent.”

The FTC has authorization to bring enforcement actions against unlawful information practices nether the FTC Act, the bureau said. However, this jurisdiction lacks teeth due to the fact that of the constricted authorization to enforce fiscal penalties. “By contrast,” the FTC said, “rules that found wide privateness and information information requirements crossed the committee and supply the Commission the authorization to question fiscal penalties for first-time violations could incentivize each companies to put much consistently successful compliant practices.”

Read next: 3 things to cognize astir the American Data Protection and Privacy Act

Adtech responds. “Unfettered postulation and monetization of idiosyncratic information has allowed the large tech firms to turn unchecked, creating an oligopoly making it precise hard for smaller players, galore of whom instrumentality to the motivation and existent existing rules,” said Steve Dunlop, CEO of personalized advertisement bureau A Million Ads. “We invited immoderate authorities that makes it a much level playing tract for galore firms to play, arsenic good arsenic a amended and clearer woody for users.”

“At this point, behavioral targeting techniques are going to beryllium made obsolete 1 mode oregon another,” acknowledged Nadia Gonzalez, CMO of Scibids, a institution that offers AI-powered integer selling solutions. “It’s clip for an enabling way successful adtech,” she said — specifically the adoption of privacy-first advertizing technologies, which she affirmed already exist.


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Why we care. In jumps the bureau and abruptly we person information extortion moving on 2 tracks, legislative and regulatory. The archetypal happening to announcement present is that the FTC, successful its nationalist statement, adopts the “surveillance” connection communal among activistic groups that person been campaigning for stringent controls connected information postulation and usage for years. That tells you wherever the FTC is coming from. Marketers bash not, successful our experience, deliberation they are “surveilling” their customers.

The contiguous absorption from the adtech manufacture is 1 of stoic acceptance. One mode oregon another, information postulation is going to beryllium severely restricted. Get utilized to the thought and enactment connected different ways to prevention addressability successful advertising.


About The Author

Kim Davis is the Editorial Director of MarTech. Born successful London, but a New Yorker for implicit 2 decades, Kim started covering endeavor bundle 10 years ago. His acquisition encompasses SaaS for the enterprise, digital- advertisement data-driven municipality planning, and applications of SaaS, integer technology, and information successful the selling space. He archetypal wrote astir selling exertion arsenic exertion of Haymarket’s The Hub, a dedicated selling tech website, which subsequently became a transmission connected the established nonstop selling marque DMN. Kim joined DMN due successful 2016, arsenic a elder editor, becoming Executive Editor, past Editor-in-Chief a presumption helium held until January 2020. Prior to moving successful tech journalism, Kim was Associate Editor astatine a New York Times hyper-local quality site, The Local: East Village, and has antecedently worked arsenic an exertion of an world publication, and arsenic a euphony journalist. He has written hundreds of New York edifice reviews for a idiosyncratic blog, and has been an occasional impermanent contributor to Eater.


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