The FTC recently issued new guidance on privacy policies. The new report expands on a preliminary report the FTC issued in December 2010. The FTC recommends companies implement three best practices for protecting privacy:

  • Privacy by Design - build in privacy protections at every stage of product development;
  • Simplified Choice - give consumers the option to decide what information is shared, e.g., a Do-Not-Track mechanism allowing users a simple way to control activity tracking; and
  • Greater Transparency - disclose collection and use details of consumers' information, and provide access to the data collected about them.  

This report follows the White House release of “Consumer Privacy Bill of Rights” in February. Given the recent updates in best practices, now is a good time to review and make sure that your posted privacy policies reflect your actual collection, use and retention of user data and that your policies conform with the best practices recommended by the FTC.