FTC’s Settlement With Google Provides Game Changing Internet Privacy Regulations

FTC's Settlement With Google Provides Game Changing Internet Privacy Regulations

By Chip Cooper, ESQ.

You’ve certainly heard about Google’s highly promoted BUZZ service which is designed to compete directly with Twitter by offering much of Twitter’s basic functionality with a Facebook-like platform including location data integrated into Gmail.  What you may not have heard is that the Federal Trade Commission (FTC) recently made BUZZ the poster child for the FTC’s effort to show that the old tried and true privacy protection methodology is now not enough.

Once again, the FTC has upped the ante for privacy requirements, and all websites are expected to comply with the new game changing regulations, or face the consequences.

The FTC’s Allegations

On March 30, 2011, the FTC announced a proposed consent order regarding Google’s BUZZ service.  According the FTC, Google had engaged in deceptive practices regarding discrepancies between its privacy policy statements and its actual practices regarding BUZZ.

Google’s privacy policy stated in part:  “When you sign up for a particular service that requires registration, we ask you to provide personal information. If we use this information in a manner different than the purpose for which it was collected, then we will ask for your consent prior to such use.”

When Google launched BUZZ, Google invited its Gmail users to sign-up with two options:

  • “Sweet! Check out Buzz”, or
  • “Nah, go to my inbox”.

The FTC alleged that both of these options were deceptive. The “Sweet” option was allegedly deceptive because users were not clearly informed that the identities of certain of their email recipients would be made public by default. The FTC claimed this was contrary to Google’s promise to obtain consent for new information uses and also in violation of Google’s requirements in its self-certified participation in the US-EU Safe Harbor program.

The “Nah” option was allegedly deceptive because users were unwittingly enrolled in certain parts of BUZZ despite selecting “Nah”.

The Game Changers

As part of the proposed settlement, Google is required to implement a comprehensive privacy program with very specific mandated requirements and to undergo privacy audits over the next twenty years.  This requirement is not new.  The FTC has historically signaled its expectations through consent orders with similar requirements.

What’s new, and certainly game changing, are the following.

  • Covered Information.  Up to now, privacy regulations has focused on “personal information” that may be used to identify an individual person.  From now on, the focus will be on “covered information” which the FTC construes to cover additional elements including screen names, location data, and lists of contacts.
  • Privacy by Design.   Generally, privacy by design is a holistic approach where privacy compliance is designed physically into systems from their inception, rather than waiting to address compliance the end of the design process or separately through a published privacy policy.  Although at this time there is scant information regarding privacy design specifics, a safe bet is that privacy by design will involve pop-up or interstitial messaging regarding the use and sharing of covered information at the time a user discloses information or opts in to a specific program.  This is in stark contrast to the current practice of providing all such messaging in a separately published privacy policy.

Conclusion

With the proposed BUZZ settlement, the FTC has aggressively raised the bar in terms of privacy requirements for all online businesses.  In essence, the FTC settlements have created “common law” regarding privacy, and websites that fail to comply do so at their peril.

Expect more specific information regarding the game changers in the form of additional suits and settlements by the FTC in the near future.

Here’s How To Make Sure You, Your Business & Website Is FTC Compliant

By now it should be clear how important it is for you to be FTC compliant. But how can you do that without spending $7,500-$8,000 or more on Internet Attorneys?

Smart business owners around the world are doing it with the help of FTC Guardian.

FTC Guardian is a service that is 100% focused on helping to keep you get and stay FTC compliant and fully protected. And right now, we are offering a free training to give you the knowledge, information, and guidance that you need to stay out of trouble with the Federal Trade Commission.

Free Compliance Workshop: Join Chip Cooper, Esq., the #1 FTC Compliance trainer in the World, for a one-of-kind, completely free online compliance workshop. Workshops fill up quickly, so register now.

Here are some of the things you’ll discover on the training:

  • Real-Life Examples of People Who Didn’t Think They Were At Risk, But Who Got Nailed By The FTC, And Why It Could Happen To You, Too
  • The 3 Enormous Powers The FTC Has That Can Change Your Life – And Your Family’s Life – Forever!
  • How to Avoid FTC Claims When Collecting Leads With Optin Forms
  • 3 Privacy Policy Mistakes Every Digital Marketer Is Making, And Why You’re In The FTC Crosshairs.
  • And Much More…

Remember: legal protection is a massively important part of your business, and it’s one you cannot afford to ignore any longer.

Go here to register for our next FREE training and make your business is FTC compliant today!

Disclaimer:  This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.

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