FTC Unveils Its Privacy Framework

The Federal Trade Commission has just issued its long-awaited final report revealing its framework on privacy, "Protecting Consumer Privacy in an Era of Rapid Change – Recommendations for Businesses and Policymakers." The report does not establish any new laws or regulations; rather, it summarizes current law, recommends legislation, and suggests best practices for well-intentioned companies to follow. Nevertheless, many observers believe that the report's "recommendations" may become regulations if they prove ineffectual. Furthermore, the framework and related FTC "to-do" list are consistent with the Obama administration's recently released Consumer Privacy Bill of Rights. (Click BABC Client Alert for more information.) Indeed, this past Thursday, the FTC testified regarding its report and the Administration's Consumer Privacy Bill of Rights before Congress. FTC Chairman Jon Leibowitz emphasized the FTC's support of legislation requiring reasonable security