Tag Archives: FTC

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.”

Data Broker Spokeo to Pay $800,000 Under FTC Settlement

Online data broker Spokeo agreed to pay $800,000 to settle Federal Trade Commission (FTC) charges that it marketed information profiles on millions of consumers to companies that used them for employment screening, without taking necessary steps to protect consumers.  This misuse of data violated federal law, specifically the Fair Credit Reporting Act (FCRA), because Spokeo operated as a consumer reporting agency but it failed to disclose the source of its data or give consumers the chance to correct inaccurate information, among other things.  The conduct occurred between 2008 and 2010 when the company marketed the data on a subscription basis.  The settlement was announced by the FTC on June 12, 2012.

Spokeo is a data aggregator, merging personal information it collects about consumers from online and offline data sources to create detailed individual profiles of consumers.  A profile might include name, address, age range, email address, ethnicity, religion, photos, hobbies, and participation on social networking sites.  Spokeo describes itself as a “people search engine.”

This case is important because it’s the first FTC case to address the sale of Internet and social media data for employment screening.  The FTC also accused Spokeo of posting deceptive endorsements of their services on news and technology websites and blogs “portraying the endorsements as independent when in reality they were created by Spokeo’s own employees.”  These misleading endorsements violated the Federal Trade Commission Act.