Federal and state regulators are bringing more and more enforcement proceedings to challenge the adequacy of corporate privacy practices. Although the best course for businesses is to be proactive and develop privacy rules that meet all applicable requirements before government steps in, a review of various privacy-related settlements that agencies recently have reached suggests a variety of steps that companies across all industries should consider adopting in an effort to protect the privacy of consumers and avoid the wrath of regulators.
ASUSTek Computer
In late July, the Federal Trade Commission (FTC) approved a final order resolving its complaint against Taiwan-based computer hardware maker ASUSTeK Computer. The FTC contended that ASUS marketed routers as including numerous security features that could “protect computers from any unauthorized access, hacking, and virus attacks” and “protect [the] local network against attacks from hackers.” The FTC asserted that, despite these claims, ASUS failed to take reasonable steps to secure the software on its routers.
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