Privacy and Information Security Law Blog

Tag Archives: Consumer Protection

FTC Sends FCRA Warning Letters to Tenant Rental History Websites

Posted on April 4, 2013 by Hunton & Williams LLP

On April 3, 2013, the Federal Trade Commission issued a press release announcing that it had sent warning letters to operators of six websites that provide rental history reports to landlords for tenant screening purposes. The letters informed the website operators that they may be considered consumer reporting agencies (“CRAs”) subject to the requirements of the Fair Credit Reporting Act (“FCRA”).

Tags: Consumer Protection, Credit Report, Enforcement, FCRA, Federal Trade Commission, Information Security, Online Privacy

U.S. Court Finds National Security Letter Nondisclosure Provisions Unconstitutional

Posted on March 22, 2013 by Hunton & Williams LLP

On March 14, 2013, the United States District Court for the Northern District of California granted a motion to prohibit the government from issuing National Security Letters (“NSLs”) to electronic communication service providers (“ECSPs”) requesting “subscriber information” and enforcing nondisclosure clauses contained in such letters. The nondisclosure clauses are intended to prevent ECSPs from disclosing that they received an NSL. The court also held that the sections of two federal statutes relating to the nondisclosure provisions of NSLs, 18 U.S.C. §2709(c) and 18 U.S.C. §3511(b), (collectively, the “NSL Nondisclosure Statutes”) were unconstitutional because they violated the First Amendment as well as separation of powers principles. In light of the significant constitutional and national security implications, the court stayed enforcement of its judgment pending appeal to the Ninth Circuit, or for 90 days if no appeal is filed.

Tags: California, Consumer Protection, FCRA, Financial Privacy, Service Provider, U.S. Federal Law

FTC Releases Report on the Increased Use of Mobile Payments

Posted on March 12, 2013 by Hunton & Williams LLP

On March 8, 2013, the Federal Trade Commission issued a staff report entitled Paper, Plastic… or Mobile? An FTC Workshop on Mobile Payments (the “Report”). The Report is based on a workshop held by the FTC in April 2012 and highlights key consumer and privacy issues resulting from the increasingly widespread use of mobile payments.

Although the FTC recognizes the benefits of mobile payments, such as ease and convenience for consumers and potentially lower transaction costs for merchants, the Report notes three areas of concern with the mobile payments system: (1) dispute resolution, (2) data security and (3) privacy.

Tags: Consumer Protection, Federal Trade Commission, Financial Privacy, Geolocation, Information Security, Mobile App, Mobile Device, Online Privacy, Privacy By Design

Massachusetts Court Ruling Benefits Plaintiff in Zip Code Case

Posted on March 11, 2013 by Hunton & Williams LLP

On March 11, 2013, in Tyler v. Michaels Stores, Inc., the Massachusetts Supreme Judicial Court effectively reinstated the suit against the retailer by answering favorably for the plaintiff three certified questions from the United States District Court for the District of Massachusetts regarding Massachusetts General Laws Chapter 93, Section 105(a) entitled “Consumer Privacy in Commercial Transactions” (“Section 105(a)”). The court ruled that (1) a ZIP code constitutes personal identification information under the Massachusetts law; (2) a plaintiff may bring an action for a violation of the Massachusetts law absent identity fraud; and (3) the term “credit card transaction form” refers equally to electronic and paper transaction forms. The Massachusetts court’s determination that a ZIP code constitutes personal identification information is similar to the determination in Pineda v. Williams-Sonoma Stores, Inc., in which the California Supreme Court held that ZIP codes are “personal identification information” under California’s Song-Beverly Credit Card Act. More than 15 states, including Massachusetts and California, have statutes limiting the type of information that retailers can collect from customers.

Tags: California, Class Action, Consumer Protection, Enforcement, Identity Theft, Information Security, Litigation, Massachusetts, Payment Card, Personally Identifiable Information, Song-Beverly Act, U.S. State Law, ZIP Codes

Ramirez to Be Named FTC Chair

Posted on February 28, 2013 by Hunton & Williams LLP

On February 28, 2013, a White House official confirmed that President Obama will nominate Edith Ramirez as Chair of the Federal Trade Commission. Ramirez, who has served as an FTC Commissioner since April 2010, will replace outgoing Chairman Jon Leibowitz, who announced his departure earlier this month.

Prior to being nominated to the FTC in 2010, Ramirez worked as an attorney in private practice, focusing on litigation and antitrust issues. Ramirez has been an active participant in the Asia-Pacific Economic Cooperation Data Privacy Subgroup and the development of the APEC Cross-Border Privacy Rules system.

Ramirez’s appointment, which is subject to Senate approval, will open a Commissioner spot on the FTC. It is unclear at this time who President Obama may nominate to fill her former position.

Tags: Consumer Protection, Edith Ramirez, Enforcement, Federal Trade Commission, Jon Leibowitz, Obama, Online Privacy

FTC Study Reports on Inaccuracies in Consumer Credit Reports

Posted on February 13, 2013 by Hunton & Williams LLP

On February 11, 2013, the Federal Trade Commission announced that a congressionally-mandated study of the U.S. credit reporting industry found that 26 percent of consumers identified at least one error that might affect their credit score. The study reported that 5 percent of consumers had errors on their credit reports that could result in less favorable terms for loans and insurance.

Tags: Congress, Consumer Protection, Credit Report, FCRA, Federal Trade Commission, Financial Privacy, Obama

California Ruling Finds Song-Beverly Act Does Not Apply to Online Transactions

Posted on February 5, 2013 by Hunton & Williams LLP

On February 4, 2013, the Supreme Court of California examined whether Section 1747.08 of the Song-Beverly Credit Card Act (“Song-Beverly”) prohibits an online retailer from requesting or requiring personal identification information from a customer as a condition to accepting a credit card as payment for an electronically downloadable product. In a split decision, the majority of the court ruled that Song-Beverly does not apply to online purchases in which the product is downloaded electronically.

Tags: Apple Inc., California, Class Action, Consumer Protection, Litigation, Online Privacy, Payment Card, Personally Identifiable Information, Song-Beverly Act, U.S. State Law

FTC Issues Staff Report on Mobile Privacy Disclosures and Announces Settlement with Social Networking Service for Mobile App Privacy Violations

Posted on February 1, 2013 by Hunton & Williams LLP

On February 1, 2013, the Federal Trade Commission issued a new report entitled Mobile Privacy Disclosures: Building Trust Through Transparency. The report makes recommendations “for the major participants in the mobile ecosystem as they work to improve mobile privacy disclosures,” offering specific recommendations for mobile platforms, app developers, advertising networks and other third parties operating in this space. The FTC’s report also makes mention of the Department of Commerce’s National Telecommunications and Information Administration’s efforts to engage in a multistakeholder process to develop an industry code of conduct for mobile apps.

Tags: Consent Order, Consumer Protection, COPPA, Department of Commerce, Enforcement, Facebook, Federal Trade Commission, Information Security, Jon Leibowitz, Mobile App, Mobile Device, National Telecommunications and Information Administration, Obama, Online Privacy, Penalty, Privacy Policy, Social Media, Twitter

Privacy and Information Security Law Blog - Global privacy and information security law updates and analysis

Tag Archives: Consumer Protection

FTC Sends FCRA Warning Letters to Tenant Rental History Websites

U.S. Court Finds National Security Letter Nondisclosure Provisions Unconstitutional

FTC Releases Report on the Increased Use of Mobile Payments

Massachusetts Court Ruling Benefits Plaintiff in Zip Code Case

Ramirez to Be Named FTC Chair

FTC Study Reports on Inaccuracies in Consumer Credit Reports

California Ruling Finds Song-Beverly Act Does Not Apply to Online Transactions

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