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.
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.
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
TelecommunicationsOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/10/ftc-staff-report-finds-many-internet-service-providers-collect-troves-personal-data-users-have-few
look what isps know about you examining privacy practices si
https://www.ftc.gov/reports/look-what-isps-know-about-you-examining-privacy-practices-six-major-internet-service
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"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."
"authority under 6(b) of the FTC Act"
"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"
"hide disclosures about such practices in fine print of their privacy policies"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.