Everalbum, Inc. settled FTC allegations that it deceived consumers about its use of facial recognition technology in its photo storage app and failed to delete photos when users deactivated their accounts. The settlement requires Everalbum to obtain express consent before using facial recognition, delete user photos and derived face embeddings, and delete developed models and algorithms. It also prohibits misrepresentations about data practices and requires consent for biometric data use if marketing software to consumers.
Everalbum must delete photos and videos of users who deactivated accounts, delete face embeddings from non-consenting users, and delete any facial recognition models or algorithms developed with user content. It must obtain express consent before using facial recognition technology and is prohibited from misrepresenting its data collection, use, and deletion practices.
In-house legal teams should review vendor, customer, and data processing agreements for clauses related to biometric data processing, facial recognition features, and data retention/deletion obligations. Specifically, examine consent mechanisms for sensitive technologies, data deletion requirements upon account termination, and representations about data practices. Updates may be needed to mandate express opt-in consent for facial recognition, enforce deletion of both user content and derived models/embeddings, and revise privacy policies to prevent deceptive statements about data handling.
Entity
Everalbum, Inc.
Also known as: Everalbum
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/01/california-company-settles-ftc-allegations-it-deceived-consumers-about-use-facial-recognition-photo
everalbum order
https://www.ftc.gov/system/files/documents/cases/everalbum_order.pdf
everalbum complaint
https://www.ftc.gov/system/files/documents/cases/everalbum_complaint.pdf
updated final chopra statement on everalbum for circulation
https://www.ftc.gov/system/files/documents/public_statements/1585858/updated_final_chopra_statement_on_everalbum_for_circulation.pdf
everalbum inc analysis of proposed consent order to aid publ
https://www.federalregister.gov/documents/2021/01/25/2021-01430/everalbum-inc-analysis-of-proposed-consent-order-to-aid-public-comment
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Everalbum, Inc."
"Everalbum allegedly enabled facial recognition by default for all mobile app users"
"Everalbum promised users that the company would delete the photos and videos of Ever users who deactivated their accounts. The FTC alleges, however, that until at least October 2019, Everalbum failed to delete the photos or videos"
"Everalbum combined millions of facial images that it extracted from Ever users’ photos with facial images that Everalbum obtained from publicly available datasets to create four datasets for use in the development of its facial recognition technology."
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.