On Tuesday, March 15, the FTC announced the settlement of a complaint against online marketing firm Chitika stemming from allegations that the company deceived consumers by structuring its opt-out mechanism to be effective for a short, ten-day period. In the settlement, the FTC requires Chitika's privacy policy to be revised to allow consumers to opt-out for a minimum of 5 years and also requires the company to destroy all consumer data received during the period that the "defective" ten-day policy was in effect. "This settlement, coming on the heels of the Do Not Track Me Online Act introduced by Jackie Speier last month, may indicate how the proposed legislation will be revised as it moves through the legislature," says Andrew Martin, an attorney with technology law firm Scott & Scott, LLP. "As it stands, Congresswoman Speier's legislation endorses no limits on opt-outs-that is, once a consumer opts-out, they are opted-out until they change their mind. Although the FTC's settlement with Chitika is a step in the right direction for consumer privacy online, it ultimately could serve to weaken the Do Not Track Me Online Act." For more information, please contact Mr. Martin at 800-596-6176 or amartin@scottandscottllp.com.
About the author
Andrew Martin:
As an associate attorney with extensive prior experience advising information technology start-ups, Andrew’s practice focuses on finding solutions for his clients’ intellectual property issues. Due to his extensive experience in the software and technology industries, Andrew understands both the practical and legal issues involved in IP licensing agreements and disputes. In addition to licensing, Andrew helps his clients find new ways to use existing technologies to assist his clients in areas such as data privacy compliance. Andrew uses his diverse background which includes founding a record label and working for a world-wide concert promoter when counseling the firm’s entertainment clients.
Get in touch: amartin@scottandscottllp.com | 800.596.6176