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Guarding Privacy: FTC Cracks Down on Data Abusers

  • Writer: Privacy Law In Canada
    Privacy Law In Canada
  • Mar 4, 2024
  • 2 min read

The recent FTC enforcement actions against Avast, X-Mode, and InMarket highlight the agency's increased scrutiny on companies that collect and mishandle consumers' sensitive personal data. Here are some key takeaways from the proposed settlements:


  1. Allegations against Avast: Avast, a security software company, is accused of unfairly selling consumers' detailed browsing information, which they collected through their antivirus software and browser extensions. Despite claiming to protect users' privacy, Avast allegedly sold this data without adequate notice or consent, often in a form that could be re-identified.

  2. Allegations against X-Mode and InMarket: Both X-Mode and InMarket are accused of mishandling consumers' location data. X-Mode allegedly sold location data to government contractors without consumer consent, while InMarket used location data to categorize consumers into specific audience segments for targeted advertising.

  3. Privacy concerns: Browsing and location data provide intimate insights into individuals' lives, including their health, finances, and interests. Even without traditional personally identifiable information, such data can still pose significant privacy risks and lead to re-identification.

  4. Deceptive practices: The FTC alleges that all three companies engaged in deceptive practices by misleading consumers about how their data would be used and shared. Avast, for example, promised to protect users' browsing data but then sold it, often without informing users.

  5. Lack of control: Consumers often have no way to object to or control how their data is collected, used, and disclosed when companies do not provide transparency about their practices. Both X-Mode and InMarket allegedly collected data without adequate consent or disclosure to users.

  6. Importance of purposeful data handling: Companies must align their data handling practices with the purposes for which data was collected. Simply providing a service does not give companies free rein to use data for unrelated purposes such as marketing or advertising.

  7. Need for meaningful privacy safeguards: The proposed settlements emphasize the importance of implementing and adhering to robust privacy safeguards. Companies must back up their privacy promises with concrete actions to protect consumers' sensitive information.

  8. FTC's commitment to protecting consumers: The FTC reiterates its commitment to protecting consumers from unlawful data practices and commercial surveillance. Chair Khan emphasized that businesses cannot sell or disclose sensitive data without informed consent, and the FTC will use all available tools to enforce privacy regulations.

Overall, these enforcement actions underscore the importance of transparency, consent, and accountability in handling consumers' personal data, as well as the need for companies to prioritize privacy safeguards over profit-driven incentives.



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