The data breach has become rampant, and FTC is asking for more power to better bolster data security and privacy.
The Federal Trade Commission (FTC) aims to better protect consumers and encourage competition. The agency’s chairperson, as well as the Division of Privacy and Identity Protection, tackled FTC’s administration endeavors and guaranteed legislators that data security and privacy are still the main priorities.
FTC chairman Chair Joseph Simon attended the Committee on Energy and Commerce Subcommittee on Digital Commerce and Consumer Protection. He highlighted the significance of data security and privacy preservations. He pointed out that every year, data security and privacy dominate the record of consumer protection priorities at the agency. Also, those type of concerns is crucial to both consumers and business.
Simons enunciated a number of latest enforcement actions in the field of data security and consumer privacy. It includes the March 2018 deal of FTC with an online payment system firm to clear up accusations against its payment as well as social networking peer-to-peer service. It involves privacy notices that are not clear enough lacking the Gramm-Leach-Bliley Act’s (GLBA) needed data security program until 2014 misleading consumers regarding their capability to govern their private transactions.
The efforts of FTC to make certain that advertising is not confounding has also been discussed. One example is the online lender, LendingClub, accused to advertise ambiguous marketing claiming that there are no “hidden fees” with their loans. However, consumers found out that they are in fact charged hundreds to thousands of dollars in conception fees.
The FTC is not at all content with the agency’s success. Simons noted that the present regulations do not provide the agency with the full authority it needs. He argued that based on Section 5, the agency would not be able to focus on all privacy and data security issues in the sphere.
“For example, Section 5 does not provide for civil penalties, reducing the Commission’s deterrent capability. The Commission also lacks authority over nonprofits and over common carrier activity, even though these acts or practices often have serious implications for consumer privacy and data security. Finally, the FTC lacks broad [Administrative Procedure Act] rulemaking authority for privacy and data security generally. The Commission continues to reiterate its longstanding bipartisan call for comprehensive data security legislation,” said Simons about data security legislation that would acknowledge his concerns.
Enforcing data security results that are customarily administered throughout the organization is likewise crucial for regulatory accordance. This element of transparency deals with eradicating device and platform disparities as a hindrance to employing universal security preservations.
Despite the accomplishments of FTC, Simons did not think twice to demand legislators for new measures to improve the agency’s capability to cushion consumer privacy and data security. In his point of view, more authority is needed by the agency. He boosts data security codification that provides the competence to pursue civil penalties to definitely avert illicit conduct, sovereignty over common and nonprofit carriers, and the strong arm to consign enforcing regulations under the Administrative Procedure Act. He added that additional privacy authority should be considered as well.