California Company Settles FTC Charges, Agrees to Provide Effective Opt-Out for Consumers
Following a 30-day public comment period, the Commission voted 2-0 to approve the final order. The order prohibits the company from misrepresenting “the extent to which [it] collects, uses, discloses, retains, or shares” consumers’ information and the ability of consumers to limit, control, or prevent the ways the company uses their data. Furthermore, the company must direct consumers to a disclosure explaining the types of information the company collects and how it uses it for targeted advertising. Clear, easily-accessible opt-out options for consumers who choose not to have their information used in targeted advertising must also be featured. Notably, the Commission stated in letter-responses to two commenters that while it lacks the authority to obtain civil penalties for initial violations under Section 5 of the FTC Act, the company would risk civil penalties of up to $40,654 per violation per day as a compliance incentive and to deter other companies from engaging in similar conduct.