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FTC Report Finds Major ISPs Collect Vast Personal Data with Poor Consumer Opt-Outs

AT&T Mobility LLC, Cellco Partnership (Verizon Wireless), Charter Communications Operating LLC, Comcast Cable Communications (Xfinity), T-Mobile US Inc., Google Fiber Inc.October 21, 2021Federal Trade Commission

Summary

The FTC released a staff report based on Section 6(b) orders to six major ISPs, finding they collect extensive personal data, including internet traffic and location data, and share it with third parties. The ISPs often obscure data use disclosures in fine print and make it difficult for consumers to opt out, while combining data to profile sensitive characteristics. The report highlights the need for stricter privacy restrictions.

Contract Impact

In-house legal teams should review vendor agreements with ISPs, customer terms of service, and data processing agreements. Focus on clauses governing data collection scope, third-party data sharing, consent mechanisms, opt-out processes, data retention, and profiling practices. Changes may be needed to ensure clear disclosures, implement easy-to-use opt-out options, limit sharing of sensitive data for profiling, and align with evolving privacy regulations.

Contract Search Terms

data sharing agreementopt-out mechanismuser consent for profilinglocation data sharingdata processing addendumprivacy policy disclosuresdata retention schedulethird-party data sharingconsumer choice mechanismssensitive data handling

Laws Cited

FTC Act
6(b)

Violation Types

Entity Details

Entity

AT&T Mobility LLC, Cellco Partnership (Verizon Wireless), Charter Communications Operating LLC, Comcast Cable Communications (Xfinity), T-Mobile US Inc., Google Fiber Inc.

Also known as: AT&T, Verizon, Charter, Comcast, T-Mobile, Google Fiber

Industry

Telecommunications

Official Sources

Source Evidence

Entity Name
"AT&T Mobility LLC; Cellco Partnership, which does business as Verizon Wireless; Charter Communications Operating LLC; Comcast Cable Communications, which does business as Xfinity; T-Mobile US Inc.; and Google Fiber Inc."
Laws Cited
"authority under 6(b) of the FTC Act"
Violation Types
"collect and share far more data about their customers than many consumers may expect—including access to all of their Internet traffic and real-time location data—while failing to offer consumers meaningful choices about how this data can be used"
Violation Types
"hide disclosures about such practices in fine print of their privacy policies"

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