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FTC

With PrivacyCon, FTC Packs the Stage with “Yes People”

The Federal Trade Commission (FTC) hosted the first annual PrivacyCon in January 2016, an event designed to highlight the latest research and trends for consumer privacy and data security. The FTC’s stated goal was to bring together “whitehat researchers, academics, industry representatives, consumer advocates, and government regulators” for a lively discussion of the most recent privacy and security research. Unfortunately, not only did the event not reflect the diversity of perspectives on these issues, but the whole event seemed to be orchestrated to reinforce the FTC’s current regulatory strategy.

First, the “data security” side of this discussion was almost non-existent in the agenda. Of the 19 presentations, only 3 were about security. Given that the FTC has been flexing its regulatory muscle on corporate cybersecurity practices, this was a missed opportunity to delve into important cybersecurity research that could inform future oversight and investigations.

Second, the FTC mostly selected papers that jibed with its current enforcement agenda. As Roslyn Layton, a visiting fellow at the American Enterprise Institute, noted recently, of over 80 submissions that the FTC received for PrivacyCon, it selected 19 participants to give presentations with

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The Myth of Anonymity

The Federal Trade Commission (FTC) released its staff report yesterday on facial recognition technologies where it warned of potentially “significant privacy concerns” and called on companies to respect the privacy interests of consumers by implementing FTC-recommended “best practices.”

First, as I have written before, policymakers should not create technology-specific rules for facial recognition. Facial recognition technology belongs to a larger class of biometric technology that should be treated the same. In addition, facial recognition has many benefits, from improving security to automating tasks to personalizing transactions.

That said, there is nothing wrong with the federal government working with industry and advocacy groups to develop voluntary best practices that protect privacy and spur innovation. But these best practices should be based on sound knowledge, such as a clear understanding of technology and an accurate representation of the world. What I’d like to address here is the myth, repeated in the FTC report, that facial recognition technology “may end the ability of individuals to remain anonymous in public places.” The FTC identifies this particular privacy risk as one of the major privacy concerns of the technology. However, contrary to the FTC’s

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cover of FTC report on privacy

The FTC Report on Consumer Privacy Misses the Mark

This week the FTC released its much anticipated report on consumer privacy, “Protecting Consumer Privacy in an Era of Rapid Change”. The report is an update to the preliminary staff report released in December 2010 which laid out the FTC’s proposed framework for privacy. In the new report, the FTC lays out a set of principles for consumer privacy and calls on Congress to implement privacy legislation using the framework laid out in this report.  While the report does provide a comprehensive discussion of many of the major privacy challenges, too often the report sides with privacy advocates at the expense of competition and innovation.

One important change in the new report is that the FTC has proposed that its privacy framework apply to all commercial entities that collect or use consumer data, except those who collect data on fewer than 5,000 consumers.  The FTC exempts small businesses from the privacy framework because of the potential burden that would be imposed on them. However, larger businesses would face similar burdens and these costs would ultimately be passed on to consumers.

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