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FTC launches investigation for privacy practices in US

The Federal Trade Commission (FTC) has issued orders to seven US broadband providers seeking non-public information to assess privacy practises.

Although this investigation is relatively broad, this might be another attempt from the US Government to get a handle on the privacy practices of the fast-evolving digital economy. Several scandals over the last 18 months have demonstrated current rules are not fit for purpose, containing too many loopholes and inadequately governing an industry which has progressed beyond the reach of bureaucracy.

The FTC has been under pressure in recent months to get a better handle on the data machines which power the digital economy, bringing in billions for the likes of Amazon and Google, but increasingly the telcos. While many fingers have been pointed at the residents of Silicon Valley, the telcos have been making money through the transfer of personal information also.

This investigation is an important step forward in creating a better understanding of the data and sharing economy, a foundation to create resilient and future-proof regulations. Some might suggest this sort of investigation should have happened years ago, but hindsight is always 20/20; who would have predicted the scale of scandals we have witnessed recently.

AT&T, AT&T Mobility, Comcast Cable Communications, Google Fiber, T-Mobile US, Verizon, and Cellco Partnership are the firms which have received the demands.

As part of the investigation, the FTC is requesting:

  • The categories of personal information collected about consumers or their devices
  • Purpose of collecting data for each of the categories
  • Methods of collecting the data
  • Policies for employees to access this data
  • Retention policies
  • What information is transferred to third-parties
  • How the data is the information is aggregated, anonymized or deidentified
  • Disclosures to customers about data collection and transfer to third-parties
  • What choices are offered to the customer
  • How accessible personal data is to the customer

As you can see, this is an incredibly broad and in-depth request, with a lot of the information being non-public. Many of the telcos who have been sent the orders will be uncomfortable releasing this information, though they’ll have no choice.

Although this is a good first step for the FTC, we would hope the investigation is broadened further in the future. More information and insight needs to be collected from the OTTs, the masters of manipulating the data-sharing economy. The telcos are small fish in this expedition, but it is progress.

All eyes from the data-sharing community will be keenly directed towards the FTC over the next couple of months. While this investigation is nothing more than a virtual pebble dropped into the digital pond for the moment, there is the potential for those ripples to grow into waves. This could be the first step towards major regulatory reform, an overdue revolution to gain a better handle on the wild-west internet economy.


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