FTC Staff Report Finds Many Internet Service Providers Collect Troves of Personal Data, Users Have Few Options to Restrict Use
On October 21, 2021, the Federal Trade Commission (“FTC”) released a report highlighting significant concerns regarding the data collection practices of many internet service providers (“ISPs”). The report reveals that ISPs gather extensive personal information about their customers, including web browsing histories and real-time location data, while offering limited options for users to control how this information is utilized.
The findings are based on an investigation initiated by the FTC in 2019, which involved major ISPs that account for about 98 percent of the mobile internet market, such as AT&T, Verizon, and Comcast, among others. The report emphasizes that these companies have expanded their operations beyond internet services to include various technology and advertising services, resulting in a greater capacity to collect and analyze user data.
Key issues identified in the report include ISPs combining personal information from multiple services to create detailed consumer profiles and categorizing users based on sensitive characteristics like race and sexual orientation. The report also notes alarming practices where real-time location data is shared with third parties without adequate consumer awareness or consent, potentially leading to misuse by entities like car salesmen or bounty hunters.
While ISPs claim to provide privacy protections and choices regarding data usage, the report indicates that these options are often difficult for consumers to navigate. Many consumers find it challenging to exercise their rights to limit data collection or access their personal information. Furthermore, the ISPs’ definitions of what constitutes a "business purpose" for retaining data are inconsistent, raising further concerns about the transparency and integrity of their data practices.
Overall, the report calls attention to the urgent need for stronger regulations to protect consumer privacy, reflecting ongoing issues seen in various industries regarding data collection and use.
For more information, see here: https://www.ftc.gov/news-events/press-releases/2021/10/ftc-staff-report-finds-many-internet-service-providers-collect
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https://www.ftc.gov/news-events/blogs/business-blog/2021/10/look-what-isps-know-about-you-must-read-report-ftc
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