What the FTC learned about privacy

Consumer Reports News: May 04, 2010 03:21 PM

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When the Federal Trade Commission first started looking into privacy issues for a series of roundtables earlier this year, the common thinking was, give consumers notice and they will make an informed choice. But privacy policies posted by companies are impossible for consumers to understand, the FTC says, and there's a need to provide transparency and choice to consumers in such a rapidly changing world?

Consumers do care about privacy, Maneesha Mithal of the Federal Trade Commission said today during Consumer Reports' panel discussion on social networking. They worry about the harm that results from the misuse of their information. It's also a myth that younger consumers don't care about privacy.

Another trend the FTC uncovered during its roudtables: Consumers are unaware of how their data is used, including tracking by online behavioral advertising. One study showed many HR departments use information posted on social networks for hiring decisions, and even rejecting applicants because of what they saw.

Finally, the distinction between personally identifiable information and anonymous information is becoming "increasingly blurred," said Mithal. So it's just as important to talk about information that looks anonymous but that can be tied to individuals.

—Donna Tapellini