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  • FACT SHEETSummary of the Kids Online Safety ActAs Congressional hearings, media reports, academic research, whistleblower disclosures, and heartbreaking stories from youth and families have repeatedly shown, social media platforms have exacerbated the mental health crisis among children and teens fostering body image issues, creating addiction-like use, promoting products that are dangerous for young audiences, and fueling destructive bullying.  The Kids Online Safety Act (KOSA) provides children, adolescents, and parents with the tools, safeguards, and transparency they need to protect against threats to young people's health and wellbeing online. The design and operation of online platforms have a significant impact on these harms, such as recommendation systems that send kids down rabbit holes of destructive content, and weak protections against relentless bullying.KOSA would provide safeguards and accountability through:   Creating a duty of care for social media platforms to prevent and mitigate specific dangers to minors in their design and operation of products, including the promotion of suicidal behaviors, eating disorders, substance use, sexual exploitation, advertisements for tobacco and alcohol, and more.Requiring social media platforms to provide children and adolescents with options to protect their information, disable addictive product features, and opt out of algorithmic recommendations. Platforms are required to enable the strongest settings by default.  Giving parents new tools to help support their children and providing them (as well as schools) a dedicated reporting channel to raise issues (such as harassment or threats) to the platforms.How Online Harms Impact LGBTQ+ CommunitiesSocial media can be an important tool for self-discovery, expression, and community. However, online platforms have failed to take basic steps to protect their users from profound harm and have put profit ahead of safety. Companies have operationalized their products to keep young users on their sites for as long as possible, even if the means to get people to use their platforms more are harmful. From documents provided by a whistleblower, Facebook’s own researchers described Instagram itself as a “perfect storm” that “exacerbates downward spirals” and produces hundreds of millions of dollars in revenue annually.  This “perfect storm” has been shown by academic research and surveys to weigh most profoundly on LGBTQ+ children and adolescents, who are more at risk of bullying, threats, and suicidal behaviors on social media. Some harms and examples of the protections KOSA would provide include:  LGBTQ+ youth are more at risk of cyberbullying and harassment.LGBTQ+ high school students consistently report higher rates of cyberbullying than their heterosexual peers, and suffer more severe forms of harassment, such as stalking, non-consensual imagery, and violent threats.Surveys have found that 56% of LGBTQ+ students had been cyberbullied in their lifetime compared to 32% for non-LGBTQ+ students.One in three young LGBTQ+ people have said that they had been sexually harassed online, four times as often as other young people.  LGBTQ+ youth are more at risk for eating disorders and substance use.Young LGBTQ+ people experience significantly greater rates of eating disorders and substance use compared to their heterosexual and cisgender peers. Transgender and nonbinary youth are at even higher risk for eating disorders, and Black LGBTQ+ youth are diagnosed at half the rate of their white peers.Prolonged use of social media is linked with negative appearance comparison, which in turn increases risk for eating disorder symptoms.Engagement-based algorithms feed extreme eating disorders through recommending more eating disorder content to vulnerable users (every click or view sends more destructive content to a user).For example, TikTok began recommending eating disorder content within 8 minutes of creating a new account and Instagram was found to deluge a new user with eating disorder recommendations within one day.How KOSA Will Help:KOSA would require that platforms give users the ability to turn off engagement-based algorithms or options to influence the recommendation they receive. A user would be able to stop recommendation systems that are sending them toxic content.  KOSA’s duty of care requires platforms to prevent and mitigate cyberbullying. It also requires that platforms give users options to restrict messages from other users and to make their profile private.It would require platforms to provide a point of contact for users to report harassment and mandates platforms respond to these reports within a designated time frame.  LGBTQ+ youth are more at risk of suicide and suicidal behaviors.Young people exposed to hateful messaging online in tandem with self-harm material on social media, increases the risk of suicidal behaviors and/or suicide.These risks are exacerbated when platform recommendation systems amplify hateful content and self-harm content.For example, after creating a new teen account on TikTok, suicide content was recommended under three minutes.Surveys have found 42% of LGBTQ+ youth seriously considered attempting suicide, including more than half of transgender and nonbinary youth.Moreover, eating disorders, depression, bullying, substance use, and other mental health harms that fall harder on LGBTQ+ communities further increase risks of self-harm and suicide.  How KOSA Will Help:In addition to the core safeguards and options provided to kids, such as controls and transparency over algorithmic recommendation systems, KOSA’s duty of care would require platforms consider and address the ways in which their recommendation systems promote suicide and suicidal behaviors, creating incentives for the platforms to provide self-help resources, uplift information about recovery, and prevent their algorithms from pushing users down rabbit holes of harmful and deadly content.Protections for LGBTQ+ CommunitiesThe reintroduction of the Kids Online Safety Act takes into account recommended edits from a diverse group of organizations, researchers, youth, and families.The outcome from experts in the field and those with lived experience is a thoughtful and tailored bill designed to be a strong step in advancing a core set of accountability provisions to provide children, adolescents, and families with a safer online experience. Below is a summary comparing previous bill text and changes that were made for reintroduction.Concerns with Previous DraftHow Current Draft Protects LGBTQ+The “duty of care” is too vague, creating liabilities for broad and undefined harms to children and teens.The duty of care is now limited to a set of specific harms that have been shown to be exacerbated by online platforms’ product designs and algorithms. Specific harms are focused on serious threats to the wellbeing of young users, such as, eating disorders, substance use, depression, anxiety, suicidal behaviors, physical violence, sexual exploitation, and the marketing of narcotics, tobacco, gambling, alcohol. The terms used to describe those harms are linked to clinical or legal definitions where there  is a perceived risk of misuse. In addition, the duty of care includes a limitation to ensure it is not construed to require platforms to block access to content that a young user specifically requests or block access to evidence-informed medical information and support resources.The inclusion of “grooming” in the duty of care could be weaponized against entities providing information about gender-affirming care.“Grooming” was cut from the bill. Sexual exploitation and abuse are now defined using existing federal criminal statutes to prevent politicalization or distortion of terms.The duty of care to prevent and mitigate “self-harm” or “physical harm” could be weaponized against trans youth and those who provide information about gender-affirming care.The specific reference to “self-harm” has been removed from the duty of care. “Physical harm” has been changed to “physical violence” to enhance clarity. Other covered harms related to “self-harm” are covered using terminology that is anchored in a medical definition.Will allow non-supportive parents to surveil LGBTQ+ youth online.The legislation clarifies the tools available to protect kids and differentiates the developmental differences between children and young teens.KOSA has always included requirements that children and adolescents are notified if parental controls are turned on, and required kids know before parents are informed about creating a new account. For teens, the bill requires platforms to give parents the ability to restrict purchases, view metrics on how much time a minor is spending on a platform and view - but not change - account settings. It does not require the disclosure of a minor’s browsing behavior, search history, messages, or other content or metadata of their communications.KOSA will lead to privacy-invasive age verification across the internet.KOSA never required age verification or gating, nor did it create liability for companies if kids lie about their age.The bill explicitly states that companies are not required to age-gate or collect additional data to determine a user’s age.Additionally, a knowledge standard is more consistently applied across the bill for the purpose of clarifying that companies are not liable if they have no knowledge whether a user is a child or adolescent.KOSA will affect access to sexual health information, schools, or nonprofit services.KOSA requirements only apply to commercial online platforms, such as social media and games that have been the largest source of issues for kids online.Nonprofits, schools, and broadband services are exempt from KOSA and a previous reference to “educational services” was removed from the “covered platform” definition of the bill.KOSA does not apply to health sites or other information resources.
    group of people under garment by Mercedes Mehling
  • The Honorable Joseph R. BidenPresident of the United StatesThe White House1600 Pennsylvania Avenue NWWashington, DC 20500May 23, 2023Dear President Biden:The undersigned civil rights, consumer protection, and other civil society organizations write to express concern about digital trade negotiations underway as part of the proposed Indo-Pacific Economic Framework (IPEF).Civil society advocates and officials within your own administration have raised increasing concern about discrimination, racial disparities, and inequities that may be “baked into” the algorithms that make decisions about access to jobs and housing, health care, prison sentencing, educational opportunity, insurance rates and lending, deployment of police resources, and much more. To address these injustices, we have advocated for anti-discrimination protections and algorithmic transparency and fairness. We have been pleased that these concepts are incorporated into your recent Executive Order on racial equity,1 as well as the White House’s AI Bill of Rights2 and many other policy proposals. The DOJ, FTC, CFPB, and EEOC also recently released a joint statement underscoring their commitment to combating discrimination in automated systems.3 Any trade agreement must be consistent with, and not undermine, these policies and the values they are advancing.Now, we have learned that the U.S. may be considering proposals for IPEF and other trade agreement negotiations that could sabotage efforts to prevent and remedy algorithmic discrimination, including provisions that could potentially preempt executive and Congressional legal authority to advance these goals. Such provisions may make it harder or impossible for Congress or executive agencies to adopt appropriate policies while also respecting our international trade commitments. For example, trade provisions that guarantee digital firms new secrecy rights over source code and algorithms could thwart potential algorithmic impact assessment and audit requirements, such as testing for racial bias or other violations of U.S. law and regulation. And because the trade negotiations are secret, we do not know how the exact language could affect pivotal civil rights protections. Including such industry-favored provisions in trade deals like IPEF would be a grievous error and undermine the Administration’s own policy goals. We urge the administration to not submit any proposals that could undermine the ability to protect the civil rights of people in the United States, particularly with regard to digital trade. Moreover, there is a great need for transparency in these negotiations. Text already proposed should be made public so the civil rights community and relevant experts can challenge any provisions that could undermine administration goals regarding racial equity, transparency, and fairness. We know that your administration shares our goals of advancing racial equity, including protecting the public from algorithmic discrimination. Thank you for your leadership in this area. For questions or further discussion, please contact Harlan Yu (harlan@upturn.org), David Brody (dbrody@lawyerscommittee.org), and Emily Peterson-Cassin (epetersoncassin@citizen.org).Sincerely,American Civil Liberties Union Center for Democracy & Technology Center for Digital Democracy Data & Society Research Institute Demand Progress Education Fund Electronic Privacy Information Center (EPIC) Fight for the Future Lawyers’ Committee for Civil RightsUnder LawThe Leadership Conference on Civil andHuman Rights NAACPNational Urban League Public Citizen Sikh American Legal Defense andEducation Fund UpturnCC:Secretary of Commerce Gina Raimondo U.S. Trade Representative Katherine TaiNational Economic Council Director Lael BrainardNational Security Advisor Jake SullivanDomestic Policy Council Director Susan RiceIncoming Domestic Policy Council Director Neera TandenDomestic Policy Council Deputy Director for Racial Justice and Equity Jenny Yang1 Exec. Order No. 14091, 88 Fed. Reg. 10825, Feb. 16, 2023, available at https://www.federalregister.gov/documents/2023/02/22/2023-03779/further-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal.2 The White House, Blueprint for an AI Bill of Rights, Oct. 22, 2022, available at https://www.whitehouse.gov/ostp/ai-bill-of-rights.3 Joint Statement on Enforcement Efforts Against Discrimination and Bias in Automated Systems, CFPB, DOJ, EEOC, FTC, April 25, 2023, available at https://www.ftc.gov/system/files/ftc_gov/pdf/EEOC-CRT-FTC-CFPB-AI-Joint-Statement%28final%29.pdf.
    woman in white tank top and white shorts standing on gray concrete road during daytime by Clay Banks
  • The Center for Digital Democracy and 23 other leading civil society groups sent a letter to President Biden today asking his Administration to ensure that any new transatlantic data transfer deal is coupled with the enactment of U.S. laws that reform government surveillance practices and provide comprehensive privacy protections.
  • To watch the full FTC Dark Patterns Workshop online visit the FTC website here (link is external).
  • News

    Groups Join Legal Battle to Fight Ineffective FTC Privacy Decision on Facebook

    Statements from Campaign for Commercial-Free Childhood, CDD, Color of Change, Common Sense Media, Consumer Action, Consumer Federation of America, Open Markets, Public Citizen, USPIRG

    FOR RELEASE July 26, 2019 Consumer Privacy Organizations to Challenge Facebook Settlement Statement from Groups --------- “The Settlement Fails to Provide Meaningful Relief to Facebook Users” WASHINGTON, DC – Many of the nation’s leading consumer privacy organizations are urging a federal court in Washington, DC to consider public comments before finalizing a proposed settlement between the Federal Trade Commission and Facebook. “The Facebook settlement is both historic and controversial. Many believe the FTC failed to establish meaningful safeguards for consumer privacy. We believe the court overseeing the case should consider the views of interested parties,” said Marc Rotenberg, President of the Electronic Privacy Information Center. Under the terms of the settlement, Facebook will pay a record-breaking $5 b fine to the United States Treasury, but there will be no significant changes in Facebook’s business practices and the FTC will release all pending complaints against the company. Typically in a proposed FTC settlement, the public would be provided an opportunity to provide comments to the agency before finalizing the deal. But no such opportunity was provided in the Facebook settlement. Many of the organizations that are joining the effort have also filed detailed complaints with the Federal Trade Commission, alleging that Facebook has violated privacy laws, including the Children’s Online Privacy Protection Act. A Freedom of Information Act case revealed that there are more than 26,000 complaints against Facebook currently pending at the Commission. In a similar case in 2012, the privacy group Consumer Watchdog challenged the FTC settlement with Google regarding the Safari hack. In other consumer privacy cases, courts have created opportunities for interested parties to file papers and be heard prior to a final determination on a proposed settlement. The case is In the Matter of Facebook, No. 19-cv-2184 (D.D.C. Filed July 24, 2019) EPIC filed with the court today: https://epic.org/2019/07/epic-challenges-ftc-facebook-s.html (link is external) Statements of Support: Brandi Collins-Dexter, Senior Campaign Director, Color of Change, “Despite the large price tag, the FTC settlement provides no meaningful changes to Facebook’s structure or financial incentives. It allows Facebook to continue to set its own limits on how much user data it can collect and it gives Facebook immunity for unspecified violations. The public has a right to know what laws Facebook violated. Corporations should face consequences for violating the public trust, not be given a rubber stamp to carry out business as usual. This settlement limits the ability of Black users to challenge Facebook’s misuse of their data and force real accountability which is why the courts must review the fairness of this settlement.” Susan Grant, Director of Consumer Protection and Privacy, Consumer Federation of America: “The FTC’s settlement with Facebook sells consumers short by failing to change the company’s mass surveillance practices and wiping away other complaints that deserved to be addressed. It needs to be stronger to truly protect our privacy.” Linda Sherry, Director of National Priorities, Consumer Action: “The FTC’s pending Facebook settlement does not take adequate measures to limit the collection and sharing of consumers’ personal information, but appears to provide the company with extensive protections from even future violations. Consumer Action respectfully urges the court to consider positions from interested parties who have related complaints filed with the FTC to ensure that the most fair and comprehensive agreement is approved.” Sally Hubbard, Director of Enforcement Strategy, Open Markets. “The FTC’s settlement is woefully insufficient in light of Facebook’s persistent privacy violations. The fine is a mere cost of doing business that makes breaking the law worth it for Facebook. Remedies must curb Facebook’s widespread data collection and promote competition. Otherwise Facebook will continue to fortify its monopoly power by surveilling users both on Facebook and off, and users can’t vote with their feet when Facebook violates their privacy. The public must have the opportunity to be heard on this negligent settlement." Robert Weissman, President, Public Citizen: “The FTC's settlement amounts to Facebook promising yet again to adhere to its own privacy policy, while reserving the right to change that policy at any time. That approach will fail to protect users' privacy. The court should reject the settlement and order the FTC to try again and do better.” Josh Golin, Executive Director, Campaign for Commercial-Free Childhood: “Facebook has been exploiting kids for years, and this proposed settlement is essentially a get-out-of-jail-free card. It potentially extinguishes our children's privacy complaints against Facebook, but offers absolutely no protections for kids' privacy moving forward. It also sweeps under the rug a complaint detailing how Facebook knowingly and intentionally tricked kids into spending money on mobile games over several years, sometimes to the tune of thousands of dollars per child.” James P. Steyer, CEO and Founder of Common Sense Media: "On behalf of families across the country, Common Sense fully stands behind EPIC's motion. The proposed settlement is a "get out of jail free" card for Facebook, purporting to absolve Facebook not only of liability for privacy abuses but for other -- completely unaddressed and unexplored -- Section 5 abuses. One such abuse that the FTC is aware of and that court documents confirm includes tricking kids into making in-app purchases that have put families out hundreds and even thousands of dollars —something the company has yet to meaningfully change its policies on to this day. Such a broad release is unprecedented, unjustified and unacceptable." Edmund Mierzwinski, Senior Director for Federal Consumer Programs, U.S. PIRG: "This laughable $5 billion settlement with the category-killer social media giant Facebook makes the much smaller Equifax settlement for sloppy security look harsh. Facebook intentionally collects and shares an ever-growing matrix of information about consumers, their friends and their interests in a mass surveillance business model. It routinely changes its previous privacy promises without consent. It doesn't adequately audit its myriad business partners. The FTC essentially said to Facebook: "Pay your parking ticket but don't ever change. Your fast-and-loose practices are okay with 3 of the 5 of us." Not changing those practices will come back to haunt the FTC, consumers and the world.” Jeff Chester, Executive Director, Center for Digital Democracy: "The 3-2 Facebook decision by the FTC leaves millions of Americans vulnerable to all the problems unleashed by the Cambridge Analytica scandal. The commission adopted a woefully inadequate remedy that does nothing to stem the fundamental loss of its user privacy which led to our original 2009 complaint."
    Jeff Chester
  • News

    FCC Commissioners Channel Scrooge and Weaken Children's TV Safeguards

    FCC fails to ensure children in the U.S. have access to free, quality video content

    "The Trump FCC just gave some of the country’s most powerful media companies a huge taxpayer-funded gift. By weakening a key safeguard requiring companies such as Comcast/NBC, News Corp./Fox, Disney/ABC, and Sinclair to air on their broadcast TV stations a few hours of educational programming for children, the FCC has placed the interests of the already rich and powerful over the needs of children and families. "Now these giant media companies get a huge public taxpayer hand-out in terms of free access to the airwaves (spectrum), as well as guaranteed access to cable TV systems, without any serious public-interest obligations. The FCC has given the TV industry a huge benefit, without getting anything in return. "Congress must step in and enact a new law that requires TV stations, cable systems and streaming video providers to offer a wide range of quality content for children. Such programming should be free—and not behind paywalls. In the meantime, today’s decision by the FCC will be remembered as one in which the commission's three GOP members embodied the worst qualities of Dickens’ Ebenezer Scrooge." statement of Jeff Chester, executive director, Center for Digital Democracy. CDD’s predecessor group Center for Media Education led the campaign in the early the 1990’s that led to the Children’s Television Act rules that were weakened today. It did the report in the early 1990’s that revealed TV stations claimed that shows like The Jetsons and The Flintstones were allegedly educational: https://www.nytimes.com/1992/09/30/us/broadcasters-to-satisfy-law-define-cartoons-as-education.html?searchResultPosition=13 (link is external)
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    Groups Call on Facebook to Disclose and Explain Its Collection of Psychological Insights About Its Youngest Users

    Facebook Told Marketers It Can Detect Teens Feeling 'Insecure' and 'Worthless'; Data Could Be Used to Drive Products Based on Mood and Using Manipulation

    Facebook should immediately release all documents describing how it collected and analyzed psychological information it recently (link is external) collected about its youngest users, some as young as 14, and college students, Public Citizen and a coalition of 25 groups said in a letter (link is external) to the corporation today. The groups are concerned about how this information might have been used or may be used in the future by marketers and others to take advantage of young people’s emotions, all without users’ knowledge. Marketing companies and Facebook have secretly moved to tap into teens’ emotions and developmental vulnerabilities strictly for profit, the letter says. The groups want to know how the data was used, when it was used, how many users were impacted and the names of the companies that received the data. “What began as a way for college students to keep in touch has morphed into a platform for brand-saturated marketing and psychological manipulation,” said Kristen Strader, campaign coordinator for Public Citizen’s Commercial Alert campaign. “It is incumbent upon Facebook as a cultural leader to protect, not exploit, the privacy of young people, especially when their vulnerable emotions are involved.” According to The Australian (link is external) newspaper, Facebook presented research to one of its advertisers that shows it collects sensitive data regarding young users’ emotions and “mood shifts.” The research detailed how Facebook can analyze sensitive user data in real time to determine how young users are communicating emotion, and at which points during the week they are doing so, the letter continued. Facebook’s research was conducted without users’ knowledge, which raises ethical concerns. “Because Facebook plays such a powerful role in the lives of teens, it must adopt a policy that respects and protects them,” said Dr. Kathryn Montgomery, professor of communication at American University and a consultant to the Center for Digital Democracy. “This should include not only strong safeguards for its advertising and data practices, but also clear limits on the kinds of research it conducts for marketing purposes. Under no circumstances should marketers be using emotional states, stress levels, biometric information or other highly sensitive data to target users. And this should apply to both young people and adults.” “Facebook needs to come clean and publicly release the full internal document, reported in The Australian, describing how Facebook collected and analyzed psychological information on high school students, college students and young users, said Finn Lützow-Holm Myrstad, European Union co-chair of the Transatlantic Consumer Dialogue. “The burden of proof is on Facebook to document publicly that they don’t collect and use such information. We are concerned that companies don’t overreach and abuse their users’ fundamental right to privacy and data protection.” The public, its users and elected officials have a right to know how pervasive this research was, who was affected and how the company will ensure it does not occur again, the groups said. The only way to fully address those concerns is to publicly release the internal document and related materials, accompanied by a more detailed explanation from Facebook of what was intended, what happened and the company’s actual practices, the letter says. —30— --- See full PDF of letter to Facebook below.
  • News

    A Big Win for Commercial Surveillance on the Internet -- a Gigantic Loss for Democracy

    US Citizens and Consumers left further exposed to unfair and discriminatory data practices.

    The following can be attributed to Katharina Kopp, Policy Director, Center for Digital Democracy. --- Today’s House vote to overturn the first major Internet privacy protection for Americans, may be a win for ISP monopolies, but it’s a tragic loss for our democracy. Broadband providers, such as AT&T, Comcast and Verizon, will now be able to sell our sensitive information to the highest bidder without first receiving our permission. We believe today’s misguided vote will unleash even more “Big Data” profiling and tracking of Americans, and spur an array of discriminatory practices. Without any restraints, ISPs will dramatically erode what should be an important American fundamental right—that of privacy. If President Trump allows this bill to become law, his Administration will place new burdens on hard-working Americans and their families—who will be at the mercy of a handful of digital giants. CDD and our allies, here and in the EU, pledge to continue our fight against the special interests that have gained new ways to control how we use the Internet and other digital media. Contact: Jeff Chester Executive Director Center for Digital Democracy Washington, DC. www. democraticmedia.org jeff@democraticmedia.org (link sends e-mail) 202-494-7100
  • News

    Federal Trade Commission Must Stop “Influencer” Marketing Targeting Kids on YouTube and Other Digital Sites

    Complaint Filed Against Unfair and Deceptive Practices Used by Google, Disney’s Maker Studios, DreamWorks-Owned AwesomenessTV, and Other Companies, by Leading Advocacy Groups

    The Center for Digital Democracy (CDD), Campaign for a Commercial-Free Childhood (CCFC) and Public Citizen filed a complaint at the Federal Trade Commission (FTC) today asking for an investigation and enforcement action against Google (a subsidiary of Alphabet, Inc.), Disney’s Maker Studios, DreamWorks-owned AwesomenessTV, and two other companies for the unfair and deceptive practice of targeting “influencer” marketing toward children. The complaint documents how several marketing companies—Collab Creators, Wild Brain, Maker Studios, and AwesomenessTV—produce and distribute ads and other commercial material targeting children that masquerade as content. It also details how Google encourages and benefits from the production of child-directed influencer videos and distributes these ads to children on its YouTube and YouTube Kids platforms. These “influencer” ads take unfair advantage of kids, who do not have the ability to recognize that companies use social media and YouTube celebrities to pitch toys, junk food, and other products. The groups also called on the FTC to release policy guidance that makes clear that using influencers to persuade children to buy a product or urge their parents to buy a product is unfair and deceptive. “Child-directed influencer marketing is misleading to children because their developing brains do not process or understand advertisements the way adults do—especially advertisements disguised as content,” said Laura Moy, Director at the Institute for Public Representation (IPR) at Georgetown University Law Center, which represents the groups. Existing FTC regulations require that advertisements be disclosed as such—which many influencer ads fail to do—but the complaint also makes clear that better disclosure alone is not a sufficient remedy because it “would not negate the inherent deceptiveness of child-directed influencer marketing.” As a result of the FTC’s inaction, marketing companies—backed by Google and others—are increasing investments in their influencer marketing practices with harmful results. “In many cases these advertisements cause children to want unhealthy and costly products,” Moy pointed out. “As this marketing practice expands even while evidence mounts that it is harmful to children, it becomes increasingly urgent for the FTC to make clear that the practice is unfair and deceptive under the law.” According to the complaint, the FTC can reverse the trend of harmful influencer marketing directed toward children by issuing policy guidance that makes clear that existing laws serve as a safeguard to protect children from these advertisements. The complaint analyzes the influencer marketing apparatus, and the role that Google and so-called Multi-Channel Networks (MCNs) such as Disney’s Maker Studios play in orchestrating the growing use of this tactic. It highlights how these companies use “influencers” who are young or popular with kids to sell junk food, toys, and more. The complaint identifies highly-popular YouTube channels like EvanTubeHD, Baby Ariel, Meghan McCarthy, the Eh Bee Family, and Bratayley, each with millions of subscribers, and how they present videos of child stars unboxing toys, playing games, and enthusiastically sampling junk food. The complaint provides several examples of such videos, including one where Baby Ariel and her family sample Jelly Belly brand jelly beans as part of a game called “BeanBoozled.” In another video, on EvanTubeHD, the child influencer is seen unboxing a Lego Police Patrol Boat. Neither video indicates that it is an advertisement, and both videos can be found intermingled with non-sponsored content on YouTube Kids. Google facilitates, promotes, and solicits these videos because they are popular with children, which increases the company’s ad revenues. “It’s time for the FTC put a stop to child-directed influencer marketing,” explained CDD’s Executive Director Jeff Chester. “Companies like Google are knowingly taking advantage of children and their parents by unleashing a torrent of stealth digital ads disguised as programming supposedly suitable for kids. As the country’s leading consumer protection agency, the FTC has a mandate to protect the public—including our children—from practices we know are both unfair and deceptive.” “Parents have no idea that the adorable ‘friends’ their children like to watch unbox toys are really stealth marketers,” said CCFC’s Executive Director Josh Golin. “It’s time for the FTC to take swift and decisive action and protect children from a practice that has long been prohibited on children’s television.” “Corporate predators are using young Internet influencers, admired by kids, to hawk their wares to children, even to young children,” explained President of Public Citizen, Rob Weissman. “The marketers and the advertising platforms enabling and promoting this activity should be ashamed. But since they’re not, we need the FTC to act to end their outrageous practice.” CCFC and CDD have also previously filed complaints with the FTC concerning child-directed marketing practices on YouTube Kids and YouTube. Todays’ complaint can be found at: http://www.commercialfreechildhood.org/sites/default/files/FTCInfluencerComplaint.pdf (link is external)
  • Fourteen organizations urge FTC Chairwoman Ramirez to put a stop to WhatsApp’s plan to transfer user data to Facebook. This letter coincides with recent complaint filed, concerning the violation of commitments WhatsApp previously made to its subscribers. --- September 22, 2016 Dear Chairwoman Ramirez and FTC Commissioners: The undersigned consumer privacy organizations write in support of the complaint the Electronic Privacy Information Center (“EPIC”) and the Center for Digital Democracy (“CDD”) recently filed concerning WhatsApp’s plan to transfer user data to Facebook in violation of commitments the company previously made to subscribers. We are deeply concerned about the impact this proposed change in data practices will have on the privacy and security of WhatsApp users in the U.S. and across the world. We urge the FTC to investigate this matter and to fulfill its obligation to prevent WhatsApp and Facebook from engaging in unfair and deceptive trade practices. WhatsApp has over one billion users worldwide, and its popularity has been due in large part to its strong public commitment to privacy. The company has long made its pro-privacy commitment a key part of its brand, underscored by numerous public statements and official blog posts on the importance of confidential communications. When Facebook acquired WhatsApp in 2014, both companies made numerous promises to the public and to the FTC that WhatsApp’s data privacy practices would not change. Consumer privacy organizations raised concerns about the acquisition, and the Commission responded with a clear warning that the companies must continue to honor their privacy promises to WhatsApp users or risk violating Section 5 of the FTC Act. The Commission stated the companies must obtain “affirmative consent” from WhatsApp users before materially changing its practices for information it collected before the merger. The FTC stated at the time that “WhatsApp must continue to honor these promises to consumers. Further, if the acquisition is completed and WhatsApp fails to honor these promises, both companies could be in violation of Section 5 of the Federal Trade Commission (FTC) Act and, potentially, the FTC’s order against Facebook.” The FTC has previously interpreted affirmative consent to require opt-in consent, particularly in the context of material retroactive changes to privacy promises. On August 25, 2016, WhatsApp announced plans to use and transfer customer data, including users’ verified telephone numbers, to Facebook for user profiling and targeted advertising. WhatsApp previously collected phone numbers and other personal information from over one billion users with the promise that this information would not be used or disclosed for marketing purposes. WhatsApp’s reversal on this promise is a material, retroactive change that will apply to previously collected data. Contrary to FTC policy, WhatsApp does not intend to provide clear notice or obtain customers’ affirmative express consent – i.e., opt-in consent – before implementing these changes for previously collected information. Rather, these material, retroactive changes are buried in WhatsApp’s lengthy revised privacy policy and consumers have 30 days to opt-out. European authorities have already begun investigating WhatsApp’s reversal on the privacy promises it made when seeking regulatory approval of Facebook’s acquisition of the messaging service. European Union Competition Commissioner Margrethe Vestager has indicated the EU is reconsidering its approval of WhatsApp’s 2014 merger with Facebook. Vestager stated that the companies’ promises not to merge user data was “a part of the decision [to approve the merger] so therefore we’re asking some follow-ups to find out what’s going on.” WhatsApp plans to make material, retroactive changes to its numerous privacy promises regarding the use and disclosure of user data without first obtaining users’ affirmative express consent. This is exactly what the FTC said WhatsApp and Facebook cannot do. It is a clear violation of the prohibition on unfair and deceptive trade practices the FTC is obligated to enforce under Section 5 of the FTC Act. We urge the Commission to fulfill its duty to protect consumer privacy, and to investigate and enjoin WhatsApp and Facebook’s proposed change in business practices. We appreciate your attention to this important matter. Sincerely, Bill of Rights Defense Committee & Defending Dissent Foundation Center for Digital Democracy Center for Financial Privacy and Human Rights Common Sense Kids Action Constitutional Alliance Consumer Action Consumer Federation of America Consumer Watchdog Cyber Privacy Project Demand Progress Electronic Privacy Information Center The FoolProof Foundation Patient Privacy Rights Privacy Rights Clearinghouse Privacy Rights Now Coalition Privacy Times U.S. PIRG ---
  • News

    EU data protection rights at risk through trade agreements, new study shows

    Strong Safeguards on Privacy and digital-consumer Protection Required

    Researchers of the University of Amsterdam’s Institute for Information Law (IViR) have published an independent study today commissioned by BEUC (link is external), EDRi (link is external), CDD and TACD (link is external). The study shows that the European Union (EU) does not sufficiently safeguard citizens' personal data and privacy rights in its trade agreements. Modern digital markets rely on the processing of personal data, but regulations on how to protect these differ widely from country to country. A new generation of trade agreements increasingly allows unrestricted data transfers, including personal data, between countries. This ground-breaking studysheds light on how trade agreements – for example, the future EU-US trade deal (TTIP) –treat personal data and privacy. By looking at both EU and international law, the researchers conclude that the EU should protect its citizens’ personal data, and prevent their privacy from being weakened in trade agreements. To do so, the EU must take action to safeguard its rules on data protection from legal challenge by its trade partners. “It’s unacceptable that the EU’s privacy and data protection rules could be challenged through trade policy. Trade deals should not undermine consumers’ fundamental rights and their very trust in the online economy. We’re pleased to see this study clearly echoing the European Parliament’s call to keep rules on privacy and data protection out of trade agreements,” Monique Goyens, Director General of The European Consumer Organisation (BEUC), commented. "The EU has the responsibility to safeguard people's rights to privacy and data protection in trade agreements. The European Union has done a great job at setting high standards for these fundamental rights. This study shows how to ensure these high standards can be maintained when trade agreements are negotiated", said Joe McNamee, Executive Director of European Digital Rights (EDRi). "The United States is aggressively pushing for a trade deal with the EU that would permit the unprecedented expansion of commercial data collection, threatening both consumers and citizens. America’s data giants want the TTIP to serve as a digital `Trojan Horse’ that effectively sidesteps the EU’s human-rights-based data protection safeguards. This new study is a wake-up call for policy makers and the public: any trade deal must first protect our privacy and ensure consumer protection," added Jeffrey Chester, Executive Director of Center for Digital Democracy (CDD). "The EU’s opaque and inconsistent system of granting third countries so-called ‘adequacy’ status for transferring personal data of its citizens makes it vulnerable to legal challenge by trade partners. This is an important finding of this study, and particularly relevant in the week when the EU-US much-criticised Privacy Shield, is likely to be approved. The EU must not make some partners more equal than others when deciding on the adequacy of their data protection laws", said Anna Fielder, Senior Policy Advisor of the Transatlantic Consumer Dialogue (TACD). Note to editors: BEUC, the European Consumer Organisation, acts as the umbrella group in Brussels for its 42 national member organisations. Its main task is to represent these members at the European level and defend the interests of all Europe’s consumers. BEUC has a special focus on five areas identified as priorities by its members: Financial Services, Food, Digital Rights, Consumer Rights & Enforcement and Sustainability. European Digital Rights (EDRi), is an umbrella organisation of 31 civil and human rights organisations from across Europe. Our mission is to promote, protect and uphold civil and human rights in the digital environment. The Center for Digital Democracy (CDD), a U.S.-based NGO, works to protect the privacy and welfare of the public in the “Big Data” digitally driven marketplace. By combining advocacy, industry research, coalition- building, and media outreach, CDD helps hold accountable some of the most powerful forces shaping the destiny of the world—especially those companies that dominant the global Internet landscape. The Transatlantic Consumer Dialogue (TACD), is a forum of over 70 EU and US consumer organisations established in 1998 with the goal of promoting the consumer interest in the US and EU policy making.
    Jeff Chester
  • Dear Chairman Upton and Ranking Member Pallone: We, the undersigned consumer and public interest groups, write regarding the “FTC Process and Transparency Reform Act of 2016,” a discussion draft advanced by the Subcommittee on Commerce, Manufacturing, and Trade to the full Committee that would alter the processes used by the Federal Trade Commission (FTC) to carry out its work. We are very concerned that the legislation would harm the FTC’s ability to crack down on scam artists and protect consumers from unfair, misleading, or anticompetitive business practices. Among other concerns, we are troubled that the legislation would: Thoroughly undermine the FTC’s enforcement capabilities. By allowing “[c]ompliance with any guidelines, general statement of policy, or similar guidance issued by the Commission” to be used as evidence of compliance with the law—rather than merely as evidence of a good­faith effort to comply with the law—the legislation could thoroughly undermine the Commission’s enforcement of the FTC Act. A company that is the target of an enforcement action or subject to a consent order could hunt for and cite a wide variety of general statements by the agency to evade liability for violating the law. Under these circumstances, the FTC might have to rescind the guidance it has given to businesses and consumers, and stop giving new guidance, in order to preserve its enforcement capabilities. Constrain the FTC’s authority to find that a business practice is unfair. By casting in statutory concrete portions of the FTC’s 35­year­old Policy Statement on Unfairness, but leaving out key context and references, the legislation would constrain and rigidify the agency’s authority to find that an act or practice is unfair. We are particularly concerned it would undermine the agency’s authority to find that an act or practice is unfair even though it may not directly cause physical effects, such as harassing late-night telephone calls. End investigations arbitrarily. By requiring the termination of any investigation after six months, unless the FTC sends the target of the investigation a written communication or votes to keep the investigation open, the legislation could result in critical investigations ending arbitrarily or their confidentiality being compromised. The FTC should have the flexibility to prioritize its time working on investigations in a manner consistent with the public interest, and to take the time necessary to determine how best to protect consumers. Weaken the FTC’s ability to prevent repeat offenses. By setting a shorter, eight-year standard length for FTC consent decrees, and requiring the FTC to justify continuing non­fraud decrees for more than five years, the legislation would weaken the FTC’s ability to prevent repeat offenses. The FTC can in most cases only fine a company—and thus penalize a repeat offense—for violating an order, not simply for re­committing the offense itself. The FTC’s work to promote competition and protect consumers from unfair or deceptive acts or practices is essential to the fair functioning of the marketplace. For over a century, the agency has stood up for the interests of consumers when threatened by unlawful behavior, such as predatory sales tactics, false advertising, price fixing, or abusive communications. The Commission—operating on a bipartisan basis and often via consensus—investigates consumer complaints and takes legal action as appropriate to stop illegal practices and deter others from engaging in them. As a result of these actions, consumers enjoy a far fairer, far more reasonable and dependable marketplace than otherwise would exist, and businesses operating fairly and honestly are rewarded with a more level playing field. We urge you not to report legislation to the full House that would undermine the FTC’s critical work. For any additional information, please contact William Wallace at Consumers Union, , 202-462-6262. Sincerely, Agriculture and Trade Policy Americans for Financial Reform Center for Democracy & Technology Center for Digital Democracy Center for Science in the Public Interest Common Sense Kids Action Constitutional Alliance Consumer Action Consumers for Auto Reliability and Safety Consumer Federation of America Consumer Federation of California Consumers Union Consumer Watchdog Families Rally for Emancipation and Empowerment Food & Water Watch Free Press Action Fund Funeral Consumers Alliance Georgia Watch Institute for Agriculture and Trade Policy (IATP) Knowledge Ecology International Massachusetts Consumers’ Council, Inc. Media Alliance National Association of Consumer Advocates National Consumer Law Center Privacy Times Public Citizen Public Good Law Center Public Health Advocacy Institute at Northeastern University School of Law U.S. PIRG Virginia Citizens Consumer Council Virginia Poverty Law Center World Privacy Forum
  • Americans face growing new threats to their personal privacy as phone and cable Internet service providers (ISPs), along with leading Internet companies, expand their ability to capture details about what we do online in order to target us with data-driven personalized advertising. This report examines AT&T, Comcast, Cablevision, Charter, Cox, Verizon, Dish, Time Warner Cable, Viacom, Google, News Corp. (Fox), Turner Broadcasting (Time Warner), and Disney, focusing on some of their recent data- and video-related advertising practices. ISPs have formed partnerships with powerful data brokers (including Acxiom, Krux, and Oracle Marketing Cloud), gaining new insights into our online and offline behaviors. They are incorporating state-of-the-art “Big Data” practices, such as “programmatic advertising” that instantaneously buys and sells individual consumers—to financial marketers, fast-food companies, and health advertisers, for example—all without the consumer’s knowledge. In the process, ISPs have transformed TV and digital video into a vast new source of personal information, analyzing set-top box and streaming-video data for our viewing habits, and combining that information with sensitive online and offline data (including financial, health, racial, ethnic, and location) to compile detailed “digital dossiers” on millions of Americans. The ability of an ISP and others to identify and target us regardless of what digital device we use, moreover, has effectively erased any privacy safeguards we may have enjoyed in the past when we switched between devices. The report provides more evidence of the “digital data arms race” that is further eroding consumer privacy: AT&T, through its AdWorks division, has developed a “cross-screen system to match users’ mobile, online and television devices together based on identifiers and systems” that the company has “access to.” It operates a “consumer insights platform” that uses “Big-Data” techniques to advance AT&T’s targeted-marketing objectives. Comcast is using Rubicon’s Advertising Automation Cloud, “one of the largest cloud and Big Data computing systems in the world, [which] leverages over 50,000 algorithms and analyzes billions of data points in real time” to buy and sell individuals to marketers. Verizon, by acquiring mobile-marketing-data company Millennial Media, gained access to customer data gathered by more than 60,000 apps, including “location, social, interest, and contextual” information. Millennial has “developed more than 700 million active server-side unique user profiles, over 60 million of which link multiple mobile devices and PCs to a single specific user ... ,” with some 175 million monthly unique users in the “United States alone.” The Federal Communications Commission’s pending proceeding on privacy should examine all the ways that broadband networks operated by Internet service providers gather and use consumer information today. The review and policy proposals need to address the data-targeting relationships that ISPs have with leading digital marketing companies, including ad exchanges, data brokers, and advertisers. The FCC should enact privacy and consumer protection rules that provide individuals with rights over their data—including a set of Fair Information Practices that address the current data practices of ISPs. These companies should not be allowed to share data with affiliates or to use information for marketing their services without the informed, prior consent of the customer. Policies for privacy are essential as well for a competitive digital video market. Otherwise powerful ISPs and other gatekeepers will control the key way programming is financially supported and distributed. --- Full report attached.
  • Today, Americans have really no privacy when they go online, use mobile phones, or stream videos. They face a growing threat to their privacy as cable and phone company broadband ISPs construct a powerful and pervasive data gathering apparatus. Phone and cable companies are taking advantage of their special status as providers of our Internet, mobile phone and TV services. They are mounting campaigns that use all their data power to track us across our devices, using personal information such as our location, financial behavior, race/ethnicity and if we have children. The proposed FCC opt-in for most consumer transactions can provide a foundation where data is under a person’s control—not a broadband company or some unknown third party. It’s a major step forward for the U.S., which has lagged behind other countries when it comes to protecting consumer privacy rights. As Americans learn more about the actual privacy-threatening practices of ISPs, we expect them to support speedy approval of new privacy safeguards by the FCC. For more information visit, https://www.fcc.gov/document/broadband-consumer-privacy-proposal-fact-sheet (link is external)
  • On March 1, 2016, five large trade associations for broadband Internet service providers (“ISPs”) proposed a framework for the Federal Communication Commission’s (“FCC”) forthcoming rulemaking on broadband privacy. While it is encouraging that ISPs now appear willing to engage on this issue and to recognize the importance of FCC data security and data breach regulations, the proposed framework fails to provide consumers with the robust protections needed in light of ongoing ISP information collection practices. We therefore submit this letter reviewing the collection practices of ISPs across multiple platforms (including their video offerings), and urging the FCC to adopt rules that will provide meaningful protections for broadband consumers. ISPs currently play a leading role in the complex ecosystem of online behavioral advertising and related forms of data-driven, targeted marketing. These companies are showing an increased interest in monetizing the data they collect about their customers, and they are leveraging their position as gatekeepers to the Internet to harness this data in powerful and invasive ways. Verizon, for example, has in place powerful data-driven tracking and targeting infrastructure for multiple platforms and devices, including mobile phones. Verizon’s acquisition of both AOL and Millennial Media in 2015, as well as its advertising partnership with Microsoft, provide the company with extraordinary capabilities for data gathering, analysis, and monetization of subscriber information. Last year, Comcast announced it would share viewer data collected by its cable set-top boxes with its NBCUniversal media division. As a result, Comcast is now actively involved in the race to build advanced data collection technologies into broadband networks and multi-screen video systems. Through its “Spotlight” advertising service, Comcast provides “multi-screen” targeting, including on mobile devices. In addition to its own intensive research and development efforts, Comcast has also acquired a number of leading advanced advertising and data-targeting companies. Comcast is able to harvest “terabytes of unstructured data” from the set-top boxes it controls, which it then enriches with demographic information to provide data “more meaningful to advertisers,” including those targeted via “Comcast’s IP-based systems.” Cox Communications offers data-driven, cross-device targeting on television, Internet, and mobile devices. Its targeting capabilities “[l]everage household demographics, like income, ethnicity and home ownership.” And through “data partnerships” and related online targeting techniques, Cox gathers additional information about consumers to create highly detailed behavioral profiles. These consumer tracking and targeted advertising practices are exacerbated by the position of ISPs as gatekeepers to the Internet, which can provide them with a highly detailed and comprehensive view of their subscribers’ online communications, personal habits, and daily lives. Moreover, ISPs have access to additional information by virtue of their business relationship with subscribers, such as home addresses, financial information, and credit ratings. As of April 2015, sixty-five percent of Internet traffic in North America was unencrypted, thereby allowing ISPs expansive access to the content of subscribers’ online communications. However, even as websites increasingly adopt encryption to protect privacy, this measure does not eliminate ISP data collection capabilities. Most forms of encryption obscure the content of communications, but the packet headers remain visible. Thus, ISPs would still have access to this metadata, which includes information regarding the time, size, origin, and destination of the communication. HTTPS also does not prevent ISPs from seeing the websites to which a user navigates. Such information can reveal intimate details of the user’s lifestyle. Moreover, communications via devices connected to the Internet of Things are largely unencrypted, allowing ISPs access to the information these devices are reporting on their users. Regardless of encryption, ISPs still receive data related to the frequency, timing, location, and volume of a user’s Internet access. This information can reveal intimate details about the subscriber, such as when a user has recently become employed or given birth to a child. While use of a “virtual private network” (“VPN”) also provides additional privacy protections, Americans who utilize free broadband access cannot rely on VPNs to protect their privacy. This is particularly true with respect to low-income Americans and children who use access points maintained by E-Rate recipients, since E-Rate recipients are required to filter for adult content. Moreover, many Internet users do not even know what VPNs are, much less how to use them. Consumers should not be forced to pay for extra precautions to protect their privacy. Privacy should not be reserved for the privileged, and no American should have to choose between Internet access and their privacy. The invasive and ubiquitous tracking practices of ISPs underscore the imperative for the FCC to exercise the full extent of its rulemaking authority to protect consumer privacy. As it stands, the Federal Trade Commission is simply not equipped to provide meaningful protections for consumer privacy for numerous reasons. The FTC’s emphasis on the “notice and choice” approach to privacy protections fails to effectively protect consumer privacy. Research shows that consumers rarely read privacy policies; when they do, these complex legal documents are difficult to understand. Moreover, emphasizing notice or disclosure favors the interests of businesses over consumers and fails to establish meaningful privacy safeguards. Nor can industry self-regulatory programs provide meaningful privacy protections when they are not supported by enforceable legal standards. Even when the FTC reaches a consent agreement with a privacy-violating company, the Commission rarely enforces the Consent Order terms. Moreover, the Commission rarely incorporates public comments into its proposed settlements, which is contrary to public policy and the interest of American consumers. Fundamentally, the FTC is not a data protection agency. Without regulatory authority, the FTC is limited to reactive, after-the-fact enforcement actions that largely focus on whether companies honored their own privacy promises. Because the United States currently lacks comprehensive privacy legislation or an agency dedicated to privacy protection, there are very few legal constraints on business practices that impact the privacy of American consumers. The FCC has the opportunity to fill this void. In light of the increasingly pervasive tracking practices of ISPs, it is imperative that the FCC take this opportunity to exercise the full extent of its rulemaking authority to protect consumer privacy. Thank you for your continuing commitment to consumer privacy protection. We look forward to working with you to develop rules to provide meaningful and much-needed protections in this field. Sincerely, American Civil Liberties Union Center for Digital Democracy Common Sense Kids Action Consumer Action Consumer Federation of America Consumer Federation of California Consumer Watchdog Electronic Privacy Information Center Free Press New America’s Open Technology Institute Privacy Rights Clearinghouse Public Knowledge --- Full letter attached.
  • Broadband Privacy Letter to FCC: January 20, 2016 Tom Wheeler Chairman Federal Communications Commission 445 12th St., SW Washington, D.C. 20554 Re: Broadband Privacy Rulemaking Dear Chairman Wheeler: The undersigned organizations urge you to commence a rulemaking as soon as possible to protect the privacy of broadband consumers. As Commissioner Julie Brill of the Federal Trade Commission (FTC) stated in a recent speech on broadband and privacy, the Federal Communications Commission’s (FCC) reclassification of broadband as a Title II common carrier service adds it as “a brawnier cop on the beat” on privacy issues. She welcomed the opportunity for the two agencies to work in cooperation to create “strong consumer privacy and data security [that] are key ingredients of our data-intensive economy, including the practices of broadband providers.” Providers of broadband Internet access service, including fixed and mobile telephone, cable, and satellite television providers, have a unique role in the online ecosystem. Their position as Internet gatekeepers gives them a comprehensive view of consumer behavior and until now privacy protections for consumers using those services have been unclear. Nor is there any way for consumers to avoid data collection by the entities that provide Internet access service. As the role of the Internet in the daily lives of consumers increases, this means an increased potential for surveillance. This can create a chilling effect on speech and increase the potential for discriminatory practices derived from data use. By contrast, commonsense protections may lead to a broader adoption and use of the Internet, as individuals gain confidence in conducting everyday business and exploring new services online. With the recently signed Memorandum of Understanding on Consumer Protection between the FCC and FTC outlining continuing interagency cooperation on privacy, the FCC is now well positioned to take its place as that “brawnier cop on the beat” focusing on broadband providers. We therefore strongly urge that the FCC move forward as quickly as possible on a Notice of Proposed Rulemaking proposing strong rules to protect consumers from having their personal data collected and shared by their broadband provider without affirmative consent, or for purposes other than providing broadband Internet access service. The proposed rules should also provide for notice of data breaches, and hold broadband providers accountable for any failure to take suitable precautions to protect personal data collected from users. In addition, the rules should require broadband providers to clearly disclose their data collection practices to subscribers, and allow subscribers to ascertain to whom their data is disclosed. We thank you for your continuing commitment to consumer privacy protection. In addition to the Commission’s important decision last year to retain authority to protect consumer privacy on broadband telecommunications services, the FCC has worked diligently under your administration to enforce existing privacy protections for voice communication, and to require greater transparency for broadband provider service practices. We look forward to working with you to modernize these existing rules to clarify crucially important protections for consumers online. Sincerely, Access Access Humboldt Access Sonoma Broadband American Association of Law Libraries American Civil Liberties Union Appalshop, Inc. Ashbury Senior Computer Community Center Benton Foundation Broadband Alliance of Mendocino County California Center for Rural Policy CALPIRG Campaign for Commercial-Free Childhood Caney Fork Headwaters Association Center for Democracy & Technology Center for Digital Democracy Center for Rural Strategies Center for Science in the Public Interest Chicago Consumer Coalition Children Now Common Sense Kids Action Consumer Action Consumer Assistance Council of Cape Cod and the Islands of Massachusetts Consumer Federation of America Consumer Federation of California Consumer Watchdog Cornucopia Network NJ/TN Chapter Cumberland Countians for Ecojustice Electronic Frontier Foundation Free Press Institute for Local Self-Reliance Kentucky Equal Justice Center Maryland Consumer Rights Coalition Massachusetts Consumer Council Maui County Community Television Mountain Area Information Network National Association of Consumer Advocates National Consumer Law Center (on behalf of its low income clients) National Consumers League National Digital Inclusion Alliance National Hispanic Media Coalition Network for Environmental & Economic Responsibility of United Church of Christ North Carolina Consumers Council Oklahoma Policy Institute Open Library Open Technology Institute at New America Oregon Consumer League Privacy Rights Clearinghouse Privacy Times Public Citizen Public Health Advocacy Institute at Northeastern University School of Law Public Knowledge Rudd Center for Food Policy & Obesity, University of Connecticut Schools, Health & Libraries Broadband Coalition (SHLB Coalition) Southern California Tribal Digital Village Texas Legal Services Center U.S. PIRG United Church of Christ, OC Inc. World Privacy Forum X-Lab --- Full letter attached.
  • News

    Promoting Beer using out-of-home digital targeting

    reFRESH by Attract Media / TouchTunes for Coors Light

    Coors Light, Attract Media (TouchTunes), Kinetic, Initiative and Common Ground collaborated to develop and implement the “reFRESH” music campaign, creating a fully interactive user experience across multiple screens that drove brand awareness, engagement and on-premise sales at thousands of targeted social venues. The custom-designed full-screen touchscreen experience placed users in control, enabling them to take and share real-time photos with friends and embark on a digital tour through the history and culture of hip-hop while experiencing its regional flavors and unique features.Affiliated Agency: Affiliated Agency: Kinetic Worldwide, Initiative, Common Ground.
  • The Center for Digital Democracy (CDD) and the U.S Public Interest Research Group (USPIRG) filed comments today in response to the Treasury Department’s request for information (RFI) on “Expanding Access to Credit through Online Marketplace Lending.” Specifically, the department sought public comment on (1) the various business models of and products offered by online marketplace lenders to small businesses and consumers; (2) the potential for online marketplace lending to expand access to credit to historically underserved market segments; and (3) how the financial regulatory framework should evolve to support the safe growth of this industry.” CDD/USPIRG’s detailed comments cautioned that “the ‘technology-enabled credit provisioning’ marketplace should not be uncritically viewed as a panacea, especially for financially underserved and economically at-risk Americans.” Rather than giving online lenders special treatment, in fact, the filing calls on the Department of the Treasury “to work with other agencies to propose or implement rules that integrate the online lending sector within the financial services regulatory sector.” Pointing out that instead of “being a new source that can support the needs of low-income or underbanked consumers,” the majority of online loans are actually going to “consumers who already have ‘prime’ ratings.” CDD and USPIRG believe that the entire financial services sector—and its use of Big Data to assess and “score” consumers—warrants closer regulatory scrutiny. “Marketplace lending should be regulated by prudential and consumer protection regulators in the same way that other financial services are,” the filing concludes, “with CFPB authority where appropriate for banks and non-banks and meaningful consumer and prudential supervision by other responsible regulators. Certainly, the lessons of 2008 provide a strong warning against allowing an under-regulated, shadow banking system to grow and pose risks to the financial system, its safety net, or the overall economy.”
    Jeff Chester
  • Here you will find the CDD Presentation to Institute of Medicine of September 2015.
  • The Center for Digital Democracy (CDD), through its counsel, requests the following documents under the Freedom of Information Act (FOIA), 5 U.S.C. § 552, related to enforcement of the Children’s Online Privacy Protection Act (COPPA), 15 U.S.C. § 6501 et seq.: All annual reports submitted to the Federal Trade Commission (FTC) by COPPA safe harbor programs for the reporting period of July 1, 2014 through June 30, 2015 as required by the COPPA Rule, 16 C.F.R. § 312.11(d)(1), including, for illustrative purposes, reports from the following safe harbor programs: Aristotle International Inc. Children’s Advertising Review Unit (CARU) Entertainment Software Rating Board (ESRB) iKeepSafe kidSafe Seal Program (kidSAFE) Privacy Vaults Online (PRIVO) True Ultimate Standards Everywhere (TRUSTe) CDD asks that if any of the requested records are stored electronically that the FTC provide the requested records to CDD in their native electronic format as required under FOIA. 5 U.S.C. § 552(f)(2). Request for Fee Waiver or News Media Fee Benefit CDD asks the FTC to waive all fees associated with this request because disclosure of the records is in the public interest or, alternatively, to limit any fees charged to CDD to reasonable duplication fees because it is a noncommercial request by a member of the news media. 5 U.S.C. §§ 552(a)(4)(A)(ii)(II), 552(a)(4)(A)(iii). CDD is entitled to a waiver of all fees associated with this request under FOIA’s public interest standard and relevant FTC regulations. 16 C.F.R. § 4.8(e). The regulations permit the FTC to waive all fees associated with a particular request when a requester demonstrates that (1) “disclosure will likely contribute significantly to public understanding of the operations or activities of the government” and (2) “that the request not be primarily in the commercial interest of the requester.” 16 C.F.R. §§ 4.8(e)(2)(i)-(ii). CDD’s request qualifies under both prongs of the FTC’s public interest fee waiver standard. First, disclosure of the annual reports provided to the FTC by COPPA safe harbor providers and any related correspondence will contribute significantly to the public’s understanding of the FTC’s oversight of private entities tasked with enforcing federal law. COPPA was designed to protect children’s privacy online, an issue of significant public importance that concerns parents, consumers, lawmakers, and the general public. The instant request concerns data on how actively private safe harbor providers are policing COPPA compliance by their members. Relatedly, the records will also disclose whether and how the FTC performs its oversight role with respect to the safe harbor programs.1 From the reports, the public can scrutinize both the safe harbors’ performance and the FTC’s actions in administering the safe harbor program under COPPA. Because CDD intends to publish the requested documents, the public at large will benefit from better understanding whether and how the FTC is protecting children’s privacy online. Full complaint attached.