The FTC's Privacy Rulemaking: Risks And Opportunities

If businesses thought August would bring a lull from the breakneck pace of privacy policymaking — including a draft federal privacy law, five new state privacy laws and a dizzying array of global privacy regulations from the EU to China to Japan — the U.S. Federal Trade Commission had other plans. Announcing an ambitious Advance Notice of Proposed Rulemaking, the FTC has put in motion a process that privacy advocates have dreamt about for years, promulgating trade regulations in privacy and data security. While rulemaking is a laudable initiative, offering businesses more predictability and consumers stronger protections, it would be more effective if it were narrowly tailored to a manageable set of goals. Otherwise, the result might not only fail to enhance the agency's stature, but also risks setting it back.