Tim Sparapani writes for Forbes about the proposed Federal Trade Commission (FTC) consent decree with Nomi Technologies, calling it “a cautionary tale for businesses everywhere wrestling with data innovation and privacy and security protection.” The FTC brought an enforcement action against the retail tracking company because it failed to provide an opt out offered in its privacy policy, even though it is “not required to offer consumers an opt out of this data collection because Nomi does not collect information that could identify specific customers.” For this misstatement, Nomi is subject to a 20-year consent order, Sparapani writes, suggesting that such harsh punishment “may deter companies from innovating with and competing on privacy and security offerings” and the FTC needs more gradation in its penalties.
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