Dive Brief:
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The Federal Trade Commission Tuesday released an 110-page report about the data collection industry, and called on Congress to pass laws protecting consumers by giving more transparency and control over the information collected about them. Earlier this year, Sens. John D. Rockefeller (D-WV) and Edward Markey (D-MA) introduced legislation that would require more consumer control over data collection.
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Data collection companies, the focus of the report, collect details including web and physical store purchases, as well as income, political and religious organizations, and even some health information, and sell them to marketers and retailers, among other companies.
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Advocates for direct marketing professionals said the report, like an earlier White House report and push for more privacy, shows no unlawful activity and that self-policing of privacy matters is working. Privacy advocates, meanwhile, said the reports don’t go far enough.
Dive Insight:
As consumers become more aware of how data collection companies operate, many will likely demand more control over their data. So far, many lawmakers, including those in two states, tend to favor consumer rights in this area, although Congress has yet to move on it.
Retailers could get ahead of the issue by working with the data companies they employ to give customers control over their data, and by being up front about how they collect and use consumers’ personal information.
