FTC Issues Proposed Privacy Framework for Businesses and Policymakers

On December 1, 2010, the FTC issued a preliminary staff report proposing a framework for protecting the privacy of consumer data while also allowing for innovation of new products and services that utilize consumer information. The report, entitled "Protecting Consumer Privacy in an Era of Rapid Change — A Proposed Framework for Businesses and Policymakers," discusses three fundamental concepts: (i) privacy by design, (ii) simplified consumer choice, and (iii) greater transparency with respect to data collection and sharing practices. Somewhat scolding the industry, the report stated that industry efforts to address privacy through self-regulation "have been too slow, and up to now have failed to provide adequate and meaningful protection."