Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers

In today’s world of smart phones, smart grids, and smart cars, companies are collecting, storing, and sharing more information about consumers than ever before. Although companies use this information to innovate and deliver better products and services to consumers, they should not do so at the expense of consumer privacy. With this Report, the Commission calls on companies to act now to implement best practices to protect consumers’ private information. These best practices include making privacy the “default setting” for commercial data practices and giving consumers greater control over the collection and use of their personal data through simplified choices and increased transparency. Implementing these best practices will enhance trust and stimulate commerce. This Report follows a preliminary staff report that the Federal Trade Commission (“FTC” or “Commission”) issued in December 2010. The preliminary report proposed a framework for protecting consumer privacy in the 21st Century. Like this Report, the framework urged companies to adopt the following practices, consistent with the Fair Information Practice Principles first articulated almost 40 years ago: