FTC Releases 2023 Privacy and Data Security Update

• The update emphasizes the FTC’s proactive measures to address the indiscriminate collection and commercialization of consumer data.
• The update details the FTC’s extensive privacy and data security work, including 97 privacy and 89 data security cases since 1999. From 2021 to 2023, the FTC focused on several key areas, including AI, health privacy, children’s privacy, and geolocation data.
• The update underscores the FTC’s ongoing efforts to promote competition, protect consumers, and educate the public about privacy and data security issues.

The Federal Trade Commission (FTC) released its 2023 Privacy and Data Security Update, which outlines the agency’s efforts to protect consumer privacy in response to evolving data usage practices, including artificial intelligence (AI) development and health data misuse. The update emphasizes the FTC’s proactive measures to address the indiscriminate collection and commercialization of consumer data. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, highlighted the FTC’s commitment to securing meaningful remedies to protect consumer information.

The update details the FTC’s extensive work in privacy and data security, including 97 privacy cases and 89 data security cases since 1999. From 2021 to 2023, the FTC focused on several key areas, including AI, health privacy, children’s privacy, and geolocation data. Notable actions include allegations against Amazon Alexa for retaining children’s voice recordings, banning BetterHelp from sharing sensitive health data, and penalizing Fortnite maker Epic Games $275 million for violating the Children’s Online Privacy Protection Act (COPPA).

The FTC has also targeted companies for data security failures, bringing actions against entities like Global Tel*Link, Drizly, Chegg, and CafePress. Furthermore, the FTC has enforced the Fair Credit Reporting Act (FCRA), securing over $137 million in civil penalties, including a notable 2023 action against Trans Union LLC for inaccurate tenant screening reports.

In addition to enforcement, the FTC has engaged in rulemaking to establish baseline privacy standards. This includes proposed rules to strengthen COPPA, clarify the Health Breach Notification Rule for health apps, and explore rules to curb harmful surveillance and lax data security. The update underscores the FTC’s ongoing efforts to promote competition, protect consumers, and educate the public about privacy and data security issues.

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