Some of what is being proposed:
- This applies to direct and indirect, online and offline marketing:
|First, the framework would apply to all commercial entities that collect consumer data in both offline and online contexts, regardless of whether such entities interact directly with consumers.|
The FTC would allow "first person marketing" tracking. This means a merchant could track purchases and propose recommended products based on purchases from their website.
Other tracking, namely third person marketing - aka affiliate marketing - would require affirmative consumer consent before the tracking is allowed.
|With respect to all other commercial data collection and use, the framework would require companies to give consumers the ability to make informed and meaningful choices.|
- To allow consumers to opt-out of any tracking by requiring that you accept, recognize, and respect a "do not track" notification from the consumer's web browser
|The Commission recommends a simple, easy to use choice mechanism for consumers to opt out of the collection of information about their Internet behavior for targeted ads. The most practical method would probably involve the placement of a persistent setting, similar to a cookie, on the consumer's browser signaling the consumer's choices about being tracked and receiving targeted ads.|
- New requirement to store data and pay for it
|companies should implement reasonable and appropriate data retention periods, retaining consumer data for only as long as they have a specific and legitimate business need to do so. As noted above, the falling cost of data storage enables companies to retain data for long periods of time, at limited cost.|
- Obligation to test privacy notices to make sure consumers read and understand them
|privacy notices should provide clear, comparable, and concise descriptions of a company's overall data practices. They should clearly articulate who is collecting consumer data, why they are collecting it, and how such data will be used. Companies should standardize the format of their notices, as well as the terminology used. This could allow consumers to make choices based on privacy and will potentially drive competition on privacy issues. In addition, companies and industry associations should undertake consumer testing of privacy notices to ensure comprehension.|
FTC Staff Issues Privacy Report Offers Framework for Consumers, Businesses, and Policymakers
The 122 page proposal can be read here: