FTC Settles Charges with Digital Advertisement Company for Deceptively Tracking Consumers | Practical Law

FTC Settles Charges with Digital Advertisement Company for Deceptively Tracking Consumers | Practical Law

The FTC has settled charges with Turn, Inc., a digital advertising company that it alleged deceived consumers by tracking them online and through mobile applications to present targeted advertising, even after consumers took actions to opt out of such tracking.

FTC Settles Charges with Digital Advertisement Company for Deceptively Tracking Consumers

by Practical Law Intellectual Property & Technology
Published on 21 Dec 2016 • USA (National/Federal)
The FTC has settled charges with Turn, Inc., a digital advertising company that it alleged deceived consumers by tracking them online and through mobile applications to present targeted advertising, even after consumers took actions to opt out of such tracking.
On December 20, 2016, the FTC issued a press release announcing it had settled charges with Turn, Inc., a digital advertising company that enables sellers to target digital advertisements to consumers based on their web browsing history and mobile app usage.
Turn's privacy policy stated that consumers could block targeted advertising by changing their web browser settings to block or limit cookies and using its opt-out mechanism. However, the FTC claimed the company used unique identifiers to track millions of Verizon Wireless customers, even after they blocked or deleted cookies or used its opt-out mechanism. For more information on Verizon Wireless's use of supercookies to track users and the Federal Communications Commission's subsequent enforcement action, see Legal Update, Verizon Wireless Settles FCC Supercookie Investigation for $1.35 Million.
Turn's privacy policy also indicated that their opt-out mechanism applied to both browsers and mobile apps even though the opt-out only applied to browsers, and Turn could still track users' mobile app usage.
Under the terms of the settlement, Turn agreed to:
  • Refrain from misrepresenting:
    • the extent of its online tracking; or
    • consumers' ability to limit or control Turn's use of their data.
  • Provide an effective opt-out mechanism for consumers who do not want their information used for targeted advertising.
  • Place a prominent link on its home page that takes consumers to a disclosure that explains what information the company collects and how it uses it for targeted advertising.
The FTC's proposed consent order is subject to public comment for 30 days and may become final after a Commission vote. This action again highlights the crucial need for companies to ensure that the commitments they make, or reasonably imply, in their privacy policies are consistent with their actual practices.