Tag Archives: Federal Trade Commission

Google to Pay $22.5 Million Record Fine to FTC over Safari Tracking

Google agreed to pay a record $22.5 million to settle claims levied by the Federal Trade Commission (FTC) that Google violated an earlier privacy settlement it had with the agency.

Google placed advertising tracking cookies on the computers of Apple’s Safari browser who visited sites within Google’s advertising network for several months in 2011 and 2012. (Safari is the browser used in Macs, iPhones and iPads. Google’s ad network is DoubleClick.) This misled consumers who were assured that they were automatically opted out of tracking because Safari’s default setting blocks most cookies coming from third parties.

The Commission said Google’s misrepresentation to Safari users broke the terms of a 2011 FTC settlement decree relating to privacy problems with Google’s now defunct Buzz social networking tool. Google did not admit to violating the 2011 decree, but agreed to disable all the tracking cookies it said it would not place on consumers’ computers.

Jon Leibowitz, Chairman of the FTC, reaffirmed the Commission’s commitment to enforce consumer privacy rights, saying “No matter how big or small, all companies must abide by FTC orders against them and keep their privacy promises to consumers, or they will end up paying many times what it would have cost to comply in the first place.”

Congress Probes Leading Data Brokers on Dossiers

On Tuesday, the Congressional Privacy Caucus sent inquiry letters to nine of the largest data brokers regarding their privacy practices, including how they collect, analyze and sell consumer information.  Data brokers are organizations that compile data on consumers and sell that data to third parties for marketing and other purposes.  “By combining data from numerous offline and online sources, data brokers have developed hidden dossiers on almost every US consumer,” the letters said.  This practice is worrisome to privacy advocates and particularly the Federal Trade Commission (FTC), which has been candid in its statements and in its March report on consumer privacy, stating that the FTC intends to crack down on these unregulated data aggregators.  The settlement with Spokeo last month is reportedly the first with others to follow this year. The Privacy Caucus, co-chaired by Reps. Ed Markey (D-Mass.) and Joe Barton (R-Texas), seems to be weighing legislative action to demand oversight and industry accountability.  Companies receiving the letter were Axciom, Epsilon (Alliance Data Systems), Equifax, Experian, Harte-Hanks, Intelius, Fair Isaac, Markle and Meredith Corp.  The companies have until August 15 to respond.