In 2015, Verizon found itself in hot water over charges it was using a “super cookie” that continued to operate even when users believed they had opted out of mobile phone data tracking. Verizon allegedly then sent the data obtained to a third party for targeted advertising purposes without its customers’ consent. Verizon settled with the FTC in 2015, and now, the third party at the heart of the FTC’s complaint, Turn Inc., has followed suit, agreeing to the terms of a consent order with the FTC on December 20, 2016.
Turn’s demand side platform and data management platform enables sellers to target consumers with digital advertisements. According to the FTC, Turn’s privacy policy indicated that Verizon wireless customers could set their web browser to block targeted advertising or limit cookies, but that web data tracking continued even after customers had taken the appropriate steps to turn it off.
The proposed consent order requires Turn to provide an effective opt-out for consumers who do not want their data used for targeted advertising; place a hyperlink on its homepage to an explanation of what information is collected and used for targeted advertising; and provide an accurate representation of its privacy policy.
Public comments on the proposed agreement will be accepted through January 19, 2017, and interested parties can submit comments here.