On January 6, 2016, the Federal Trade Commission issued its staff report on big data, Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues, following up on the FTC’s workshop on big data in September 2014 and seminar on alternative scoring products in March 2014. The report provides an overview of the characteristics and lifecycle of big data, summarizes the benefits and risks of big data, and outlines considerations for companies using big data, including potentially relevant laws such as the Fair Credit Reporting Act, equal opportunity laws, and laws prohibiting unfair and deceptive acts or practices.
The report serves as a helpful resource for a company in evaluating the potential uses, benefits, risks, and compliance requirements for big data. While many companies that already use big data will be familiar with the laws analyzed in the report and how to comply with them, new or emerging companies or companies that do not regularly work with consumer protection or financial services laws should read the report with care to develop an understanding of the legal framework applicable to the use of big data.
Continue Reading The FTC Staff Report on Big Data