A good way to learn how to avoid an FTC enforcement action is to review the FTC actions and determine what activities caused concern. We have listed a few of these FTC actions in this Guide. More details on FTC enforcement and consent decrees can be found at the FTC website. Privacy Notices and Policies. Although the FTC Act does not specifically require that a “Privacy Notice” be posted on a company’s website, the FTC has consistently maintained the position that the use or dissemination of personal information contrary to a posted privacy policy is a deceptive trade practice under the FTC Act. The key to compliance with the FTC Act is therefore to make sure that your website privacy statement or notice is consistent with actual practice. The easiest way to get in trouble with the FTC for a violation of the FTC Act is to have a privacy policy on a website that suggests that no personal information will be shared with any third party when such information is actually shared. Transparency. Say what you do and do what you say. The FTC has taken the position that if a company discloses a privacy policy, it must comply with it. Retroactive Material Changes to Website Privacy Policy. It is a potential violation of the FTC Act for a company to retroactively make material changes to its privacy policy without providing consumers with notice of those changes and the opportunity to opt out of the new privacy policy. Consent Requirements. Although the FTC Act does not expressly address consent, website operators that revise their privacy policies should obtain affirmative express consent (that is, allow consumers to opt-in) before using their data in ways that are materially different from the privacy policy that was in effect when the data was collected. Individual Access to Collected Data and Right to Correct or Delete Data. The FTC Act and most federal and state privacy laws, (with the exception of HIPAA and some California laws) do not provide individuals with specific rights to access or correct their
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