During the past two years, the collection of personal information through a consumer’s online activities has expanded to unprecedented levels. This is due, in part, to a proliferation of new devices through which consumers disclose personal information and due to increasingly sophisticated behavioral analytics. In response, regulators and legislators are beginning to consider more closely whether comprehensive federal data-privacy legislation is appropriate. This article explores these unfolding developments and the challenges they present to regulators, consumers and the online business community.
Data privacy is protected in the United States today through an amalgamation of industry self-regulation and legislation. Specific laws cover certain “high risk” data — primarily, financial, credit and health information, as well as information concerning minors. However, other personal information is generally protected only if an entity engages in “deceptive trade practices,” thereby coming under the enforcement powers of the Federal Trade Commission (FTC) or, in certain cases, state attorneys general or private actions by individuals.
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