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May 10th, 2012
Myspace Settles Privacy Policy Charges
This week, the social network Myspace agreed to settle charges by the Federal Trade Commission (the "FTC") that Myspace inappropriately disclosed its users' personally identifiable information. Specifically, the FTC charged that Myspace did not honor its own promises to consumers in its privacy policy.
Myspace assigns a unique identifier (a "Friend ID") to each consumer profile. The profile can contain all sorts of personally identifiable information about a user, such as that user’s full name, age, picture, interests, friends, etc.. Myspace’s privacy policy promised it "would not share users' personally identifiable information, or use such information in a way that was inconsistent with the purpose for which it was submitted," without giving notice, and getting permission from users.
Nonetheless, Myspace provided advertisers the Friend IDs, which advertisers could then match up with users’ profiles to serve targeted behavioral ads and track user activity. The FTC thus alleged that the privacy policy’s deceptive promises violated federal law.
Myspace will be barred from future privacy misrepresentations, must implement and maintain a comprehensive privacy program, and must provide periodic independent privacy assessments for 20 years. Notably, Myspace will not pay any penalty.
The settlement is a reminder that privacy concerns are at the forefront of the FTC's "to do" list, and that privacy policies actually do matter. Just in the last year, the FTC has agreed to privacy-related settlements with Twitter, Google and Facebook, so even the big players are not exempt from scrutiny. Further, while many entities jump to the question of whether their privacy practices are legal, the preliminary question may be whether their privacy practices adhere to what they have already promised in their privacy policies.
If you have any questions about privacy matters or other advertising or marketing law issues, please contact Jeffrey A. Greenbaum at (212) 826 5525, jgreenbaum@fkks.com or any other member of the Frankfurt Kurnit Advertising Group.
Other Advertising Law Alerts
What the Advertising Industry Can Learn from Kim Kardashian’s Settlement with the SEC
On October 3, 2022, the Securities and Exchange Commission (SEC) announced that it entered into a $1.26 million settlement with Kim Kardashian over her social media promotion of the EMAX token without disclosing payment she received from token issuer, EthereumMax. The matter provides important lessons for advertisers. Read more.
October 10 2022
Get Ready for California’s New “Automatic Renewal” Rules
California recently amended its Automatic Purchase Renewals law. The amended statute - effective July 1st -- require marketers to provide consumers of automatic renewal or continuous service offers with more information and easier ways to terminate. Read more.
June 22 2018
“Made in the U.S.A.” Claims Continue to be Scrutinized
In 2016, California amended Section 17533.7 of the California Business and Professions Code ("Section 17533"), liberalizing the standard for selling products labeled "Made in U.S.A" to California consumers. Read more.
June 4 2018
