FTC Issues Report on Big Data Analytics | Practical Law

FTC Issues Report on Big Data Analytics | Practical Law

The FTC has issued a report on big data analytics and urges caution for businesses using big data analytics to ensure that their use does not result in harmful or discriminatory outcomes.

FTC Issues Report on Big Data Analytics

Practical Law Legal Update w-001-1690 (Approx. 3 pages)

FTC Issues Report on Big Data Analytics

by Practical Law Intellectual Property & Technology
Published on 07 Jan 2016 • USA (National/Federal)
The FTC has issued a report on big data analytics and urges caution for businesses using big data analytics to ensure that their use does not result in harmful or discriminatory outcomes.
On January 6, 2016, the FTC issued a press release announcing the publication of Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues. The report, which draws on information collected from the FTC’s 2014 workshop on Big Data as well as related public comments and research, addresses the commercial use of big data consisting of consumer information and focuses on the impact of big data on low-income and underserved populations.
In particular, it covers:
  • The lifecycle of big data.
  • Benefits and risks.
  • Considerations for companies using big data.
The report defines the big data lifecycle as:
  • Collection.
  • Compilation and consolidation.
  • Analysis.
  • Use.
Specifically, the report focuses on the use portion of the lifecycle and does not address issues such as privacy, security, or notice and choice. Rather, it is intended to educate businesses on important laws and research that are relevant to big data analytics—such as the Fair Credit Reporting Act—and includes a set of questions that businesses may ask to assess legal compliance.