Privacy Policies Are More Than Formalities: What Every Business Should Know About the FTC Act
In today's digital economy, businesses collect unprecedented amounts of personal information—from names and email addresses to browsing histories, precise geolocation, and even health-related data. While many organizations treat privacy policies as routine legal documents, United States law views them quite differently. Under Section 5 of the Federal Trade Commission (FTC) Act, a privacy policy is not merely a disclosure document—it can become a legally enforceable promise. If a company represents that it handles personal information in a certain way but acts differently in practice, it may face enforcement action by the Federal Trade Commission (FTC). The FTC's Role in Data Privacy Unlike comprehensive privacy laws that prescribe detailed compliance requirements, the FTC Act adopts a broader consumer protection approach. Section 5 prohibits unfair or deceptive acts or practices in or affecting commerce. This provision has become the foundation of the FTC's privacy and data...