CDD

Press Releases

  • The Center for Digital Democracy calls on the Federal Election Commission (FEC) to hold hearings examining the role that the Internet and related digital data applications now play in federal political campaigns. The public needs a better understanding of how contemporary digital practices in the “Big Data” era affect our electoral system. CDD also urges the FEC to begin a rulemaking to revise its regulations concerning disclaimers so the public has appropriate access to information regarding the operations of online ads and related content. “The FEC must hold hearings to examine how, in this era of “Big Data” and personalized digital marketing, the unrestricted use of consumer information for political targeting may threaten our democratic process,” said Katharina Kopp, policy director of the Center for Digital Democracy. “Political campaigns now have access to an array of details on individuals that wasn’t previously available, including what they do online and offline. As we witnessed last year, this new capability can be used to engage in online suppression tactics to dissuade individuals and groups from voting. We urge the FEC to examine how digital data-driven campaigns may disenfranchise communities of color and economically at risk individuals." --- For more information, please see the attached media advisory and comment by the CDD.
  • WASHINGTON, DC – October 18, 2017—A number of brands of “smartwatches” intended to help parents monitor and protect young children have major security and privacy flaws which could endanger the children wearing them. A coalition of leading U.S. child advocacy, consumer, and privacy groups sent a letter to the Federal Trade Commission (FTC) today, asking the agency to investigate the threat these watches pose to children. Smartwatches for children essentially work as a wearable smartphone. Parents can communicate with their child through the mobile phone function and track the child’s location via an app. Some product listings recommend them for children as young as three years old. Groups sending the letter to the FTC are the Electronic Privacy Information Center (EPIC), the Center for Digital Democracy (CDD), the Campaign for a Commercial-Free Childhood (CCFC), the Consumer Federation of America, Consumers Union, Public Citizen, and U.S. PIRG. The advocacy groups are working with the Norwegian Consumer Council (NCC), which conducted research (link is external) showing that watches sold in the U.S. under the brands Caref and SeTracker have significant security flaws, unreliable safety features, and policies which lack consumer privacy protections. In the EU, groups are filing complaints in Belgium, Denmark, the Netherlands, Sweden, Germany, the UK, and with other European regulators. “By preying upon parents’ desire to keep children safe and, these smart watches are actually putting kids in danger,” said CCFC’s Executive Director Josh Golin. “Once again, we see Internet of Things products for kids being rushed to market with no regard for how they will protect children’s sensitive information. Parents should avoid these watches and all internetconnected devices designed for kids.” The NCC’s research showed that with two of the watches, a stranger can take control of the watch with a few simple steps, allowing them to eavesdrop on conversations the child is having with others, track and communicate with the child, and access stored data about the child’s location. The data is transmitted and stored without encryption. The watches are also unreliable: a geo-fencing feature meant to notify parents when a child leaves a specified area, as well as an “SOS” function alerting parents when a child is in distress, simply do not work. The manufacturers’ data practices also put children at risk. Some devices have no privacy policies at all, and the policies that do exist lack basic consumer protections, including seeking consent for data collection, notifying users of changes in terms, and allowing users to delete stored data. "The Trump Administration and the Congress must bring America’s consumer product safety rules into the 21st century,” said Jeff Chester of the Center for Digital Democracy. “In the rush to make money off of kids’ connected digital devices, manufacturers and retailers are failing to ensure these products are truly safe. In today’s connected world that means protecting the privacy and security of the consumer—especially of children. Both the FTC and the Consumer Product Safety Commission must be given the power to regulate the rapidly growing Internet of Things marketplace.” The Caref (branded Gator in Europe) and SeTracker smartwatches are available online through Amazon. The groups have asked the FTC to act quickly to investigate these products, and they advise parents to refrain from buying the products because of the danger they could pose to children. The NCC, which conducted the testing of the watches, advises consumers who have already purchased the watches to stop using them and uninstall the app. “The Federal Trade Commission must be proactive in protecting consumers—especially vulnerable young children—from harmful products that abuse technology for the sake of profit,” said Kristen Strader, Campaign Coordinator for Public Citizen. “Smartwatches and similar devices must be absolutely safe and secure before they are released to the public for sale.” Ed Mierzwinski, Consumer Program Director at U.S. PIRG, said, "Companies making any internet-connected devices, but especially for children, need to ensure that privacy and security are more than breakable — or worse, hackable — promises." Katie McInnis, technology policy counsel for Consumers Union, said, “When a company sells a smartwatch aimed at children, it must ensure the product is safe and secure. The FTC should launch an investigation into the privacy and security concerns surrounding these products to make sure families are safe.” The same trans-Atlantic coalition persuaded government authorities and retailers last December (link is external) that the internet-connected dolls Cayla and i-Que Robot were spying on children and threatening their welfare, and retailers removed the toys from store shelves. The FBI subsequently issued a warning to consumers (link is external) that internet-connected toys could put the privacy and safety of children at risk. --- For more information, please see the following: Letter to FTC by coalition of leading U.S. child advocacy, consumer, and privacy groups (link below) Press Release by US coalition of leading U.S. child advocacy, consumer and privacy groups (link below) #WatchOut Report by Norwegian Consumer Council (link below) Press Release by Norwegian Consumer Council (link below) #WatchOut English - YouTube (http://bit.ly/2ghNoD1 (link is external)) #WatchOut - longer video explainer on security flaws 4:30 mins - YouTube (http://bit.ly/2xLYSVv (link is external))
    Jeff Chester
  • Press Release

    Advocates Call on FCC to Protect Programming and Advertising Safeguards for Children's TV

    Commission Must Reject TV Industry Proposal to Undermine Public Interest Obligations

    WASHINGTON, D.C. – Advocates called today on the Federal Communications Commission (FCC) to reject an effort by major media companies to eliminate or weaken important rules for children’s television. The National Association of Broadcasters, Internet and Television Association (NCTA), CBS, Disney, Fox, Univision, and others have asked the FCC to significantly reduce advertising limits on children’s programming. Industry commenters also urged the FCC to reconsider rules that require broadcasters to provide quality educational programming as part of their obligation to serve the public interest. In comments filed today, Campaign for a Commercial-Free Childhood and the Center for Digital Democracy called on the FCC to reject industry proposals to repeal or modify the current rules. “The Trump Administration and the FCC should stand up for the rights of children and parents and reject this crass campaign by the broadcast lobby,” said Jeff Chester, executive director of the Center for Digital Democracy. “The broadcast industry receives billions of dollars in benefits from its free use of public resources, including invaluable rights to the airwaves. It is unconscionable that TV stations and networks want to kill off one of their few remaining obligations to the public.” In April, the FCC issued a public notice on its “Modernization of Media Regulation Initiative,” asking for suggestions about which of the FCC’s media-related rules should be modified or repealed. Media companies replied with a deregulation wish list that would allow them to use kids’ television programming to market directly to children. The major networks urged the FCC to relax its rules prohibiting product integration and product placement on kids’ shows, arguing that YouTube and other child-directed online services are not subject to those restrictions. Advocates responded by pointing out that internet and mobile providers are simply ignoring longstanding children’s media principles, which are based on child development, and that a lack of online regulation is not a good reason for the FCC to eliminate important safeguards for the millions of children who watch traditional TV. “It is extremely disappointing that broadcasters want to join the race to the bottom when it comes to exploiting children’s developmental vulnerabilities for profit,” said Josh Golin, executive director of the Campaign for a Commercial-Free Childhood. “Media companies want to gut longstanding safeguards because young people an incredibly lucrative market for advertisers. But research demonstrates that children are particularly vulnerable to marketing and benefit from rules that require ad limits and separation of programming and commercial content.” Advocates also oppose a request by the Internet and Television Association to repeal an FCC rule known as the “website display rule.” The FCC adopted this rule in 2004 to prohibit advertisers from engaging in “host-selling” to children, which the transition to digital broadcasting could otherwise allow. Angela J. Campbell, director of the Institute for Public Representation at Georgetown and counsel to some of the advocates, called the effort to repeal this rule disingenuous. “The media companies say the website display rule is unnecessary because television has rarely been used to interact and target advertising to children,” she said. “But at the same time, these companies engaging in a practice known as ‘programmatic marketing,’ which offers advertisers the ability to target ads to specific viewers of cable and broadcast television programming.” In addition, advocates oppose efforts by media companies to be relieved of their public interest obligation to provide educational programming for children, and to produce public reports to help the FCC determine whether that programming meets the obligations laid out in the Children’s Television Act. “The television industry made a commitment to serve the nation’s children by providing quality educational programs,” explained Professor Kathryn Montgomery of American University, who led the effort to strengthen the FCC’s rules on the Children’s Television Act. “However, broadcasters failed to live up to these minimal obligations and the FCC has been irresponsible in allowing the industry to evade one of its only remaining public interest requirements. Rather than considering elimination of these rules, the FCC (and Congress) should conduct an investigation into TV programming and advertising practices directed at children.” ---- The comments can be read via the attached PDF file below.
  • The Center for Digital Democracy (CDD), a leading US NGO specializing in consumer data protection issues in the digital marketplace, is pleased to respond to the request that we provide information applicable to first annual review of the EUUS Privacy Shield. CDD has been assessing the Privacy Shield since it came into force in 2016, in part as a result of its work coordinating the activities from the US side of the Transatlantic Consumer Dialogue (TACD) working group on the Information Society. EU citizens and consumers who deal with companies enrolled in the Privacy Shield program confront a serious erosion of their data protection and privacy rights. The rights of EU citizens under the Privacy Shield program are not equivalent to how they would be protected by EU law. We urge the Commission and EU Data Protection Authorities to suspend the Privacy Shield in light of its lack of any policies, rules, or enforcement that would provide meaningful adequacy or equivalency. The Commission should insist that U.S. companies targeting EU citizens or consumers must operate under the forthcoming General Data Protection Regulation (GDPR) framework. For this submission, we reviewed the activities of several major U.S. companies enrolled in the Privacy Shield program, examining their submissions on the U.S. Commerce Department website (including descriptions of their activities, the link to and content of their privacy policy statements). We compared these statements to the actual data collection and use-related activities conducted by the companies, including their own descriptions of how they operationalize their business goals. We supplemented this analysis with the information that CDD extensively gathers on the commercial digital marketplace, such as automated “programmatic” decision making and other contemporary consumer-directed applications. --- For the full PDF of the letter, see attachment in link below.
  • Public Knowledge joined by the Consumer Federation of America, the Center For Digital Democracy, Consumer Action, Consumer Federation of California, and the Privacy Rights Clearinghouse writes a letter urging the Federal Trade Commission Acting Chairman, Maureen Ohlhausen, to protect consumer privacy. The letter is asking the FTC Chairwoman to publicly and expeditiously resolve a pending complaint concerning cable TV and satellite TV privacy. --- June 12, 2017 Maureen Ohlhausen Acting Chairman Federal Trade Commission 600 Pennsylvania Avenue, NW Washington, DC 20580 Dear Acting Chairman Ohlhausen: The Federal Trade Commission (FTC) has long protected consumer privacy, in tandem with other agencies, and you recently reiterated your dedication to protecting consumer privacy in the digital age through FTC enforcement. We therefore urge the FTC to quickly resolve the complaint filed one year ago by a coalition of consumer advocates. The complaint provides evidence that the nation’s cable and satellite providers have and continue to deceive consumers about their privacy practices by failing to provide adequate notice, in violation of Section 5 of the FTC Act. Since the complaint was filed, leading Internet Service Providers, cable and telephone companies have significantly expanded their ability to gather, analyze and make actionable data that is used to target subscribers, their families, and other consumers. --- See the link below for the full PDF of the complaint.
  • The Center for Digital Democracy (CDD) and Campaign for a Commercial-Free Childhood (CCFC), by their attorneys, the Institute for Public Representation, respond to the Federal Trade Commission’s (FTC or the Commission) request for comment on proposed changes to TRUSTe’s COPPA Safe Harbor program. TRUSTe has sought approval of changes to its COPPA Safe Harbor program that it states are necessary to comply with an Assurance of Discontinuance it recently entered into with the New York Attorney General’s Office (NYAG). While the proposed changes themselves do not appear objectionable, the facts leading up to this proposal strongly suggest that TRUSTe has violated its 2015 Consent Decree with the FTC by misrepresenting its practices for assessing operators of child-directed online services (Operators). CDD and CCFC ask the FTC to conduct an investigation of TRUSTe to determine if it has in fact violated the Consent Decree, and if so, to take all available enforcement action against TRUSTe. Further, to protect the privacy of children pending the outcome of the investigation, they ask the FTC to suspend TRUSTe’s COPPA Safe Harbor program. (Link to the full report attached below.)
  • 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.”
  •  For Immediate ReleaseContact: Jeff Chester (202-494-7100)April 8, 2010jeff@democraticmedia.orgCenter for Digital Democracywww.democraticmedia.org  CDD, U.S. PIRG, and World Privacy Forum Call on Federal Trade Commissionto Investigate Data Collection “Wild West”Involving Real-time Advertising Auctions and Data Exchanges Urge FTC to Develop Rules to Protect Consumer Privacyin the New Personal Data Marketplace  Washington, DC: In a complaint filed today with the Federal Trade Commission, the Center for Digital Democracy, U.S. PIRG, and the World Privacy Forum challenged the commission to investigate the growing privacy threats to consumers from the practices conducted by the real-time data-targeting auction and exchange online marketplace. Increasingly and largely unknown to the public, technologies enabling the real-time profiling, targeting, and auctioning of consumers is becoming commonplace. Adding to the privacy threat, explains the new complaint, is the incorporation and expanding role of an array of outside data sources for sale online that provide detailed information on a consumer.  “This massive and stealth data collection apparatus threatens user privacy,” the 32-page filing explains. “It also robs individual users of the ability to reap the financial benefits of their own data—while publishers, ad exchangers and information brokers … cash in on this information.”  Among the companies cited in the complaint are Google, Yahoo, PubMatic, TARGUSinfo, MediaMath, eXelate, Rubicon Project, AppNexus, and Rocket Fuel. The complaint also cites the failure of privacy policies and self-regulation to meaningfully safeguard consumers. “FTC inaction,” declared CDD Executive Director Jeff Chester, “has encouraged the data collection and ad targeting industry to expand the use of consumer information for personalized advertising. The commission’s failure to adequately protect the privacy of consumer transactions online, including those that involve financial and other sensitive information, is irresponsible. U.S. consumers, especially during this time of economic hardship for so many, need a commission that is proactive in protecting their interests.” “Consumers will be most shocked to learn that companies are instantaneously combining the details of their online lives with information from previously unconnected offline databases without their knowledge, let alone consent,” said U.S. PIRG Consumer Program Director Ed Mierzwinski. “In just the last few years, a growing and barely regulated network of sellers and marketers has gained massive information advantages over consumers.” Recent developments in online profiling and behavioral targeting—including the instantaneous sale and trading of individual users—have all contributed to what CDD’s filing termed a veritable “Wild West” of data collection. Participating companies are employing “practices that fail either to protect consumer privacy or to provide for reasonable understanding of the data collection process, including significant variations in how cookies are stored and the outside data sources used.”  For its part, the advertising industry has been anything but shy in describing the power of the new real-time online ad profiling and auction system. “…Internet ad exchanges,” explains one online marketer quoted in the complaint, “… are basically markets for eyeballs on the Web. Advertisers bid against each other in real time for the ability to direct a message at a single Web surfer. The trades take 50 milliseconds to complete.” Accordingly, CDD, U.S. PIRG and WPF called on the FTC to take the following actions: •    Compel companies involved in real-time online tracking and auction bidding to provide an opt-in for consumer participation in such systems. •    Require that these companies change their privacy policies and practices to acknowledge that their tracking and real-time auctioning of users involve personally identifiable information. •    Ensure that consumers receive fair financial compensation for the use of their data. •    Prepare a report for the public and Congress within six months that informs consumers and policymakers about the privacy risks and consumer protection issues involved with the real-time tracking, data profiling, and auctioning of consumer profiles. •    Address the implications of potential information “redlining” of consumers, with companies deciding not to provide editorial content based on an assessment of the marketing value of a particular online consumer’s behavioral data. The group’s FTC filing is available here.   CDD is a nonprofit group working to educate the public about the impact of digital marketing on public health, consumer protection, and privacy. It has played a leading role at the FTC and in Congress to help promote the development of legal safeguards for behavioral targeting and other online data collection practices. U.S. PIRG serves as the federation of non-profit, non-partisan state Public Interest Research Groups. PIRGs are public interest advocacy organizations that take on powerful interests on behalf of their members. For twenty years, U.S. PIRG has been concerned with privacy and compliance by governments and commercial firms with Fair Information Practices. The World Privacy Forum is a nonprofit, non-partisan public interest research group. The organization is focused on conducting in-depth research, analysis, and consumer education in the area of privacy. It is the only privacy-focused public interest research group conducting independent, longitudinal work. World Privacy Forum reports have documented important new areas, including medical identity theft. Areas of focus for the World Privacy Forum include health care, technology, and the financial sector. 
  • CDD, U.S. PIRG, Consumer Watchdog, and World Privacy Forum call on the Federal Trade Commission to investigate interactive marketing of pharmaceutical and health products and services to consumers and health professionals. Action is required to protect consumers, including their privacy, in the online health and medical marketplace. The FTC has a role to play to help the Food and Drug Administration address new threats. Read the press release below for details…