FTC Proposes “Nutrition Label” for Privacy Policies

Oct. 31, 2012 - PRLog -- During the annual Wired for Change privacy conference in New York, the FTC and fellow panel members discussed ways to improve privacy policies to fit not only traditional websites, but also mobile based websites and applications.  In an increasingly mobile world where 65% of searching, 65% of shopping, 59% of managing finances, and 66% of social networking all begin on a smartphone, companies need to be clear about what type of data they are collecting and how they are using it. (Source:  The New Multi-screen World, Google, August 2012, pg. 20.)

The FTC is proposing a “nutrition label” type privacy policy for companies that will be shorter and more readable than many traditional privacy policies found on websites.  The panelists at the conference stated that an effective policy summary should accomplish three things:

1.     Support a user’s ability to assess a site or app’s privacy practices at an appropriate time (like a decision making moment such as an app download);

2.     Support a method of delivery that is informative without being overwhelming or intrusive to the user experience;

3.     Provide only the information that is most relevant, like the data collection practices which are invisible to users.

“The FTC is trying to offer some support and guidance in the ever-evolving industries rather than binding rules,” explained Klemchuk Kubasta partner Darin Klemchuk.  “Identifying the essential terms that should go into a privacy policy creates clarity for the consumer and the business owner.”

The panel discussed reading patterns for online reading and where readers focus their attention when viewing websites.  “The panelists focused on redesigns of website privacy policies that emphasize visual clarity and maximize user experience,” stated Klemchuk Kubasta associate Roxana Sullivan.  “Short notices for mobile users were featured.  These notices represented a succinct privacy policy with expandable sections for various topics such as collection and use of data, sharing of information, security, and contact information.”

“These new types of policies really do enhance the user experience while providing protection for the company,” said Klemchuk.  “The FTC introduced a variety of companies and software that could help design these simplified and clarified privacy policies.  With the help of attorneys to draft the terms of the policies coupled with a good software for website publishers or application builders, companies can create effective privacy policies.”

The FTC has been working with mobile app providers to effectively establish a nationwide standard for app privacy policies.  Other topics of focus during the conference were the type of information included in privacy policies for websites targeted to children and ways to provide a shortcut to inform parents of the information gathered through these websites.

About Darin Klemchuk:

Darin Klemchuk is co-founder and managing partner of Klemchuk Kubasta LLP, a Dallas-based IP boutique law firm that offers comprehensive intellectual property legal services, including litigation and enforcement of all forms of intellectual property as well as registration and licensing of patents, trademarks, trade dress and copyrights.  To contact Mr. Klemchuk, email him at darin.klemchuk@kk-llp.com

About Klemchuk Kubasta LLP:

Based in Dallas, Texas, Klemchuk Kubasta LLP is an IP boutique law firm that offers comprehensive intellectual property legal services, including litigation and enforcement of all forms of intellectual property as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides legal services relating to domain names, e-commerce, privacy policies, social media, Internet law, commercial and business litigation, technology transactions, and international business & trade.  Additional information about the firm and its attorneys may be found at www.kk-llp.com.