As big data and the Internet of Things (IoT) become the primary driving force of today’s business, the Federal Trade Commission (FTC) is looking for new ways to address privacy and security concerns regarding consumer information. In 2011, the FTC opened the Mobile Technology Unit (MTU), headed by Kristin Cohen, with a focus on the consumer privacy and security issues brought by new technological innovations.
The MTU is now being absorbed into a larger agency with a broader scope. The Office of Technology Research and Investigation (OTRI) is charged with finding better ways to secure consumer data, to help the FTC enforce unsound business practices that threaten public safety and security, and to aid law enforcement in identifying such practices. Head of the MTU, Cohen, will move into the top position at OTRI.
The Responsibilities and Focus of OTRI
OTRI will look into the tech aspects of business practices that put consumer information at risk.
OTRI will delve into research regarding investigative techniques to be used by law enforcement agents. It will hopefully provide valuable insights into the technological issues of big data and the IoT, such as new innovations like smart cars and smart homes. OTRI will also be responsible for improving the transparency of algorithms and looking deeper into new payment methods, such as mobile payment methods that might not be safe for consumers’ privacy.
According to Lisa Sotto, a partner at Hunton & Williams, “This is a natural evolution for the FTC. As technology gets more complex, and matters hinge on the use and misuse of technology, the FTC needs to be able to better judge whether organizations are doing the right thing,”
The Future of OTRI in Legislation
Part of OTRI’s job will be making sure new methods of making online payments are safe for consumers.
At the same time that the FTC is forming OTRI, Congress is debating a couple of versions of new legislation that seeks to protect the privacy of consumers and enforce stricter regulations regarding data security. Following an unprecedented number of data breaches over the past year that put millions of consumers’ personal information in the wrong hands, legislators are trying to make it harder for businesses to let this data become compromised.
Both the House and the Senate have introduced such legislation, and with strong bipartisan support, some form of such a law is most likely going to pass in the near future. However, the FTC maintains that the focus of OTRI is to find better ways of making sure businesses secure and protect consumer data, regardless of any legislation on the issue. According to Jessica Rich, director of FTC’s Bureau of Consumer Protection, the OTRI is being established in order to, “ensure that consumers enjoy the benefits of technological progress without being placed at risk of deceptive and unfair practices.”
What This Means for Businesses
What does all this mean for businesses that are delving into big data? It’s time now to beef up security, deploy better methods of preventing Advanced Persistent Attacks and other threats, and protect consumer backup with robust, secure backup solutions. It is much better to be proactive about self-regulation than to wait for the FTC to move in and regulate your data procedures for you.
Keep your eyes and ears on the news in the coming weeks and months to learn more about new legislation regarding data security and consumer privacy.
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