At the Wired for Change conference earlier this week, FTC Chairman Jon Leibowitz noted that the FTC is developing a “nutrition label” for data collection and use, modeled after the nutrition facts label for food and beverages.  Leibowitz reportedly said that the agency’s chief technologist and the Bureau of Consumer Protection are working to identify “five essential terms” that should be included in these standardized privacy policies.  California Attorney General Kamala Harris, who spoke on the same panel as Leibowitz, supported the idea of food labels for mobile apps, according to reporters’ tweets

The concept of a nutrition label for privacy has been under discussion in the privacy community for some time.  In July 2001, FTC Commissioner Sheila Anthony suggested that nutrition labels and EnergyGuide labels could serve as models for standardized privacy policies.  Several academics have developed standardized table formats for privacy policies, and research from Carnegie Mellon’s CyLab has found that standardized privacy policy formats allow readers to find information more accurately and quickly. 

Continue Reading FTC Working on Privacy “Nutrition Label”; Industry Focusing on Icons

Updated on October 1, 2012 to add information about Chairman Leibowitz’s response to the nine Representatives’ letter. 

As we previously noted, in March of this year the Federal Trade Commission called for the implementation of a Do Not Track (DNT) system that allows consumers to opt out of the collection of all online behavioral data other than data needed for certain limited purposes, such as preventing fraud.  Much of the debate over DNT has been taking place within the World Wide Web Consortium (W3C), which has been convening talks to develop a standard for what it means to honor a consumer’s DNT preference. 

According to media reports, advocacy groups are now asking the FTC to become more actively involved in the W3C discussions.  In a letter to FTC Chairman Jon Leibowitz, the Center for Digital Democracy, Consumer Watchdog, and the Electronic Frontier Foundation wrote, “The W3C talks have reached a point where a clear statement from the FTC will play a decisive role in reaching consensus.”  The organizations want the FTC to support a proposal that would permit the collection of analytics information only if the data cannot be linked to specific users or devices, as well as a proposal that websites should honor DNT irrespective of whether the DNT setting is turned on by default — an issue we blogged about here

Meanwhile, nine House members have reportedly written to the FTC to raise concerns about the agency’s role in the W3C process.  The lawmakers questioned whether the FTC and W3C have adequately considered DNT’s potential effect on third-party advertising networks and publishers.  The members also requested information about the agency’s authority to participate in the W3C discussions, studies the agency considered before advocating for DNT, and other information.  Rep. Mick Mulvaney (R-SC) today sent a separate letter to Chairman Leibowitz, asking for similar information and criticizing the FTC for “acting outside the scope of Congressional intent” by seeking to create government policy in an area reserved for Congress.

Edit:  Chairman Leibowitz responded to the Representatives’ letter by emphasizing that the FTC’s role in W3C “in no way usurps the legislative process or imposes a burden on industry” because any DNT standard adopted by the W3C would be self-regulatory and voluntary.  The nine House members’ letter is available here, and Chairman Leibowitz’s response is available here.

Continue Reading FTC’s Role in “Do Not Track” Discussions Under Debate