[German]The lack of a comprehensive federal law to protect U.S. citizens from online tracking by online platforms is a growing problem in the United States. Companies are trying to collect and store vast amounts of search data and other information from consumers. This is now prompting the U.S. Federal Trade Commission (FTC) to plan an expansion of online data protection.
In Europe, after all, we have the General Data Protection Regulation (DSGVO, GDPR), which aims to protect users' data. In the U.S., though, privacy activists are also on the topic – and recently I read that there was a legislative initiative in the works. This site here posted some notes on the draft American Data Privacy and Protection Act (ADPPA) in early June 2022.
The draft has been released by the U.S. Senate and House of Representatives. The goal of the American Data Privacy and Protection Act (ADPPA) is to create a landmark privacy law that would establish a U.S.-wide standard. Currently, a hodgepodge of industry-specific and state laws form the backbone of U.S. privacy regulations and rights, as can be read in this commentary on Data Protection Report. Commentators' take: The bill faces major hurdles, however, including tough arguments over how to handle the privilege and whether to give individuals a private right of action.
The US Federal Trade Commission takes over
Faced with a lack of regulations and slow progress, the US Federal Trade Commission plans to expand online privacy protections. The following tweet picks up on this:
The Federal Trade Commission has released the document FTC Explores Rules Cracking Down on Commercial Surveillance and Lax Data Security Practices and posted the document Commercial Surveillance and Data Security Rulemaking on the web. In compact summary, the FTC is examining existing rules to combat commercial surveillance and lax data security practices. With the above call (Advance Notice of Proposed Rulemaking), the agency is seeking public comment on the harms of collecting, analyzing, and marketing information about individuals in the United States. It also asks whether new rules are needed to protect people's privacy and data.
Commercial surveillance means collecting, analyzing, and profiting from information about people. Mass surveillance (especially in the U.S.) has increased the risks and dangers of privacy breaches, deception, manipulation, and other abuses.
"Companies today collect personal data from individuals on a massive scale and in a wide variety of contexts," said FTC Chairman Lina M. Khan. "The increasing digitization of our economy – coupled with business models that incentivize endless tapping of sensitive user data and a vast expansion in the use of that data – means that potentially unlawful practices can be widespread. Our goal today is to begin producing robust public documentation that will inform whether the FTC should issue rules governing commercial surveillance and data security practices, and what those rules should potentially look like."
That must have some people at the FTC waking up to the fact that concerns about commercial surveillance practices are arguably rampant. For example, some companies are collecting and storing huge amounts of consumer data (though the amount already seems inadequate). The problem, as the FTC sees it: This information is at risk to hackers and data thieves. There is growing evidence, according to the FTC, that some surveillance-based services can become addictive to children and lead to a variety of psychological and social harms.
Other concerns for the FTC arise from the way companies try to make it difficult for users to avoid commercial monitoring. Some companies require customers to sign up (and thus be tracked) as a condition of using their services. Consumers who do not want their personal information shared with other parties may be denied service – or consumers may have to pay a premium to keep their personal information private.
It's a problem the FTC also sees – which is common knowledge: After consumers sign up, companies can change their privacy policies to allow for more extensive monitoring. Companies are increasingly using dark patterns or marketing methods to influence or coerce consumers to share personal information. A classification of the FTC initiative can be found in the Wall Street Journal (hope it doesn't disappear behind a paywall).
