FTC steps up consumer privacy action.(Federal Trade Commission's consumer protection actions)

Response, September, 2005 by Griffin, Kerri; Knowles, Jeffrey D.

While the Federal Trade Commission's (FTC) highest consumer-protection priority is still deceptive and fraudulent advertising and marketing practices, its recent settlement with BJ's Wholesale Club Inc. indicates just how serious the agency is about protecting consumers' privacy.

The FTC has issued orders against several marketers, including Guess? Inc. and Toysmart.com Inc., which allegedly didn't keep promises to keep consumers' personal information to themselves. The disclosure of personal information by these companies contravened the privacy policies posted on the companies' Web sites, making it an easy matter for the FTC to establish that those privacy promises were deceptive claims.

But the BJ's settlement is different because the retailer's...

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