7 reasons the FTC could audit your privacy program

21.08.2012
The Federal Trade Commission's $22.5 million settlement with Google last month over its user-tracking practices woke up enterprise-risk managers around the country. With penalty thresholds hitting this new range of pain, publicly traded companies now have to ask whether should be included in their Securities and Exchange Commission filings as a key risk.

What would it take, though, for the FTC to open up an investigation of your company? This is the question I tested last week. I reviewed the roughly 100 privacy cases the FTC has settled and interviewed the general counsel of a company that recently went through this process.

What did I find out? A shortlist of seven practices that will put a bull's eye on your company.

The FTC has been saying for the past couple of years that it's wary of so-called online-behavioral advertising -- the amassing of large data dossiers on website visitors, usually through cookies, in order to deliver those visitors highly targeted ads. The FTC has reason to believe that users don't fully know what data is being collected about them. It especially doesn't like it when companies collect and use clickstream data in ways that users probably wouldn't consent to if they knew the full story.

This is what happened in the that allowed the user to block third-party cookies. But found a way around that setting to place its own cookies, seemingly undermining users' privacy expectations.