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Wednesday, Jan 20, 2021

Does the FTC want more power to penalize companies for misusing people’s data?

Bakar Wilson, Gigafact Foundry
yes

The Federal Trade Commission, the chief agency responsible for “protecting consumer privacy and security,” says it needs greater authority to penalize companies that misuse people's data.

In published remarks from 2019, its chairman acknowledged that the FTC's legal authority to hold companies accountable for data misuse was “imperfect” and “limited,” hindering its “ability to protect consumers.” The chairman called for legislation to give the FTC “civil penalty authority,” among other powers. Brookings, a Washington think tank, says the FTC needs a bigger budget.

Data misuse occurs when a company uses data for a purpose unrelated to why it was initially collected, for example sharing or selling data to third parties or tracking individuals‘ locations without consent. Concern over business' use of their data is a major source of consumer mistrust.

This fact brief is responsive to conversations such as this one.

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