The Federal Trade Commission (FTC) recently agreed upon a settlement with Myspace LLC, operator of Myspace.com, regarding the company’s privacy practices. In its six-count complaint, the FTC accused Myspace of several unfair and deceptive practices related to its disclosure of user information, including a claim that the company misled its users about the extent to which it shared their information with advertisers. As a result of the settlement, Myspace is banned from making misrepresentations about its privacy practices and has agreed to institute a comprehensive privacy program.
As part of the settlement, Myspace is prohibited from misrepresenting the extent to which it protects consumer information, especially with respect to the practices described above. Myspace must also implement a comprehensive privacy program to adequately protect consumer information. In addition to requiring more privacy controls, the FTC has also imposed auditing and reporting requirements to ensure compliance.