Apr 12, 2015

FTC Cautions on Use of Consumer Data Following Business Acquisitions

The Federal Trade Commission (FTC) has long been aggressive in holding businesses accountable for the commitments made to consumers in online privacy policies. Among the related issues that the FTC has revisited over the years is the validity of changing data use practices after a business acquisition or merger. As early as 2000 in the Toysmart bankruptcy case, the FTC adopted a strict view that an acquirer — even one in a bankruptcy setting — could either not acquire (depending on the transaction structure) or undertake new uses of consumer data collected by an acquired company if the acquired company’s privacy policy… Read more