The Federal Trade Commission ("FTC") was established in 1914 by the Federal Trade Commission Act (the "Law")2. FTC under the law; It prohibits unfair competition methods, unfair acts and practices that affect trade.
Whereas companies tell consumers that they will protect their personal information, FTC can apply law enforcement to ensure that companies meet these promises. FTC has initiated legal action against organizations that violate consumers' privacy rights or cannot protect security for sensitive consumer information or cause substantial consumer injury. In most of these cases, FTC accused defendants of violating Chapter 53, which prohibits unfair and deceptive acts and practices in trade. In addition to the FTC Law, FTC also enforces other federal laws regarding consumer privacy and security.4
In the United States ("the US"), states have different privacy laws, so the FTC sets them a general standard. In accordance with this standard, there are 5 basic principles that are stated as fair information practice codes that should be included in all privacy policies. The 5 basic principles are listed below.
- Notice / Awareness
- Selection / Confirmation
- Access / Participation
- Integrity / Security
- Enforcement / Corrections
If companies' privacy policies do not comply with these standards or if they violate their policies that comply with these standards, they will face unfair competition sanctions by the FTC.
As a result, violations of companies' privacy policies can be described as unfair competition within the framework of certain criteria and standards, but penalties can be imposed on companies for this action. Privacy policies are such an agreement between companies and its own websites' consumers and visitors. The other main idea is privacy policies are made by companies, the policy is contained the company's own rules, practices and expedients. The company should not violate its own rules. If it violates, then it is fair to judge that it is making unfair competition and to impose fines because it misjudges the visitors and gets unfairly compete to other companies.
1. 2016/679 (General Data Protection Regulation)