The Federal Trade Commission has determined that the following practices related to the misuse of information are deceptive or unfair and are unlawful under Section 5(a)(1) of the Federal Trade Commission Act.
- It is an unfair or deceptive trade practice to use information collected in a context where an individual reasonably expects that such information will remain confidential (“Confidential Context”)1 for any purpose not explicitly requested by the individual unless the individual first provides affirmative express consent for such use. For example:
a. It is an unfair or deceptive trade practice to use information collected in a Confidential Context to obtain a financial benefit that is separate from the benefit generated from providing the product or service requested by the individual unless the individual first provides affirmative express consent for such use.
b. It is an unfair or deceptive trade practice to use information collected in a Confidential Context to advertise, sell, or promote products or services unless the individual first provides affirmative express consent for such use.
- It is an unfair or deceptive trade practice to make false, misleading, or deceptive representations or omissions concerning the use or confidentiality of information collected in a Confidential Context.
For example, it is an unfair or deceptive trade practice to misrepresent, explicitly or by implication, that an individual’s information will:
(i) be used solely to provide the specific product or service requested by the individual and not for any unanticipated uses; and
(ii) not be used to obtain a financial benefit that is separate from the benefit generated from providing the product or service requested by the individual.