FTC Finalizes First Privacy Settlement Against A Retail Tracking Firm

In a first-of-its-kind enforcement action, the Federal Trade Commission (FTC) on Thursday voted along party lines to settle deception allegations against Nomi Technologies (Nomi), a company whose technology allows retailers to track the movement of customers within stores.
 
The Commission's Complaint stems from representations in Nomi's privacy policy that customers could opt-out of the company's tracking either online or in stores that deployed the technology. The FTC alleged that the opt-out was not, in fact, available in stores, and that Nomi's privacy policy created an implied representation that consumers would be informed when a location utilized Nomi's tracking services. The Order, which will last for 20 years, imposes an injunction against Nomi's misrepresenting, expressly or by implication, its opt-out options or the extent to which consumers will be given notice of tracking.