FTC Requests Information on Commercial Surveillance and Data Security Practices

FTC requested comment on "whether it should implement new trade regulation rules or other regulatory alternatives" to protect consumer data. The Advanced Notice of Proposed Rulemaking ("ANPR") was published in the Federal Register.

In the ANPR, FTC asked market participants to respond to a series of questions on "the ways in which companies collect, aggregate, protect, use, analyze and retain consumer data, as well as transfer, share, sell or otherwise monetize that data in ways that are unfair or deceptive." The FTC described commercial surveillance and lax data security practices which have been the subject of enforcement actions, news reporting, and published research.

FTC posited 95 questions "on (a) the nature and prevalence of harmful commercial surveillance and lax data security practices, (b) the balance of costs and countervailing benefits of such practices for consumers and competition, as well as the costs and benefits of any given potential trade regulation rule, and (c) proposals for protecting consumers from harmful and prevalent commercial surveillance and lax data security practices."

FTC stated that it would consider the responses before issuing a rulemaking on commercial surveillance and data security practices. Acknowledging the "significant interest this proceeding is likely to generate," FTC listed requirements for any comment submission including the inclusion of an executive summary. Comments are due no later than October 21, 2022.