FTC Highlights Need for Privacy and Security in Internet Commerce

Written by Jillian Collins

The Federal Trade Commission has weighed in as part of the Department of Commerce's public comment process on privacy and security issues. According to the FTC's comment, consumers trusting that their personal information will be safeguarded is essential to the success of e-commerce, and innovation is essential to ensuring privacy in the fast-paced, ever-changing world of the Internet economy. The topic of innovation and internet privacy controls has been, and continues to be, one of the FTC’s "highest consumer protection priorities for more than a decade," according to the comment.

In the comment, the FTC laid out several aspects of its privacy program. The agency led nearly 30 enforcement cases challenging business practices that allegedly failed to secure consumers' personal information and made efforts at educating consumers and businesses about privacy and security in an online world. The FTC also has several policy initiatives including promoting self-regulation in online behavioral advertising and participates in international privacy programs. The agency hosted several privacy roundtables and plans to public privacy and security proposals for public comment later this year.

Related links:
http://www.ftc.gov/opa/2010/06/foodinternet.shtm

Holiday Privacy Watch: Take care before you donate that cell phone

During the holiday season, many organizations are soliciting donations of old cell phones to be repurposed. This is an excellent way to "reuse, reduce, and recycle" and puts those useless (to you) items to use in a positive way, but please remember -- important and private data reside in your cell phone's internal memory, even if your phone has a removable SIM card. PINs, passwords and other critical information are often stored in a cell phone's memory. The more mobile apps you use, the more important it is for you to ensure that you wipe the cell phone internal memory before donating, trading-ins or selling.

Some tips -
1) Don't forget to remove the SIM card!
2) Call logs, photos, memos, and other information might reside in the phone's internal memory, and are often difficult to delete if you rely on the phone's manual (and who keeps those, anyway??). The folks at ReCellular - a cell phone recycling service - have a great solution called The Cell Phone Data Eraser. It lets you choose the brand and model number of your phone, and then displays the precise commands you need to delete every piece of data from it. The ReCellular website is http://www.recellular.com/recycling/data_eraser/default.asp. If you can't find the info you need here, most cell phone manuals are available online at the manufacturer website for download.

If you think you can circumvent the privacy threat by sending your phone back to your service provider, you could be mistaken. According to one report, a Cingular customer who received a refurbished phone as a replacement for one that malfunctioned found the new phone was filled with the previous owner's private data, including account numbers, user names, and passwords. In December, an old BlackBerry sold at a McCain campaign garage sale for 20 dollars was found to be preloaded with a mountain of Republican donor information, emails, and more.

Don't let this discourage you from turning those paperweights back into useable technology for folks who need it -- just take some extra time to protect your personal information.

Happy Holidays!

House scheduled to act today on several privacy bills

The House is scheduled to vote on HR 1319, The Informed P2P User Act, and HR 2221, The Data Accountability and Trust Act, tomorrow under suspension of the rules. We will monitor the debate and keep you updated on its passage.

Federal Trade Commission hosts privacy roundtable today

The FTC kicks off the first in a series of "roundtable" discussions to explore privacy challenges posed by 21st technology and business practices that collect and use consumer data. Today's roundtable is being held in Washington, DC, and will focus on data collection, use and retention, consumer expectations of privacy, online behavioral advertising, information brokers and a discussion surrounding existing regulatory frameworks.

The event is being streamed live at the FTC website.


Live Webcast here

"Smart Grid" privacy issues to be examined by Federal Communications Commission

Smart Grid technology enables electric utilities to use communications and computing technology to glean consumer electric usage patterns to facilitate more efficient network management. It's been identified by the FCC as a promising way to use broadband to promote energy efficiency, reduce greenhouse gas emissions, and encourage energy independence.

These consumer electric usage patterns could conceivably do far more.... For example, marketing firms may find valuable market penetration data in consumer electric usage patterns and law enforcement could use information about electricity usage to pinpoint potential sites of criminal activity. Basically, the very characteristics that make smart grid information valuable to environmental efforts may also have serious implications for consumer privacy and are attracting the interest of regulators here in the U.S. and elsewhere.

Specifically, the FCC has sought comment by October 2, 2009 on the issue of how strong privacy and security requirements can be satisfied in deploying smart grid technology without stifling innovation.

The Colorado Public Utilities Commission just closed a comment period last week on the following issues and the comments received on these questions may help to further inform the debate at the national level:

1. What concerns surrounding the collection and analysis of detailed electricity usage information should the CPUC consider as it establishes policies governing access to and use of this information?
2. What, if any, are the trade-offs between protecting privacy and promoting innovation with regards to smart grid technology?
3. Should detailed electricity usage information be protected? If so, how?
4. How do constitutional or statutory protections impact the use of consumers’ detailed electricity usage information collected as part of smart grid initiatives? What protections should be put in place even if not covered by constitutional or statutory provisions?
5. What are the necessary components of effective privacy regulation of consumer electricity usage patterns? For example, should disclosure of consumer information to third-parties be on an opt-in or an opt-out basis, or should the consent-requirement depend on the nature of the party receiving the information?
6. How much information about consumer electricity usage do electric utilities and “edge service providers” require to facilitate more efficient network management, load forecasting, asset management, bill control, demand-side load management, efficiency consulting, energy savings contracting, etc.?
7. How do privacy regulations affect electric utilities and “edge service providers” in their efforts to provide enhanced electricity management services?
8. Who “owns” customer information?
9. What should be a utility’s obligation to “unbundle” metering in homes and businesses?