Nomi Highlights Risks Of Publicizing Privacy Policies

Law360, New York (May 27, 2015, 8:21 AM EDT) -- A closely divided Federal Trade Commission has signaled support for the agency’s recent focus on mobile device privacy. On April 23, 2015, the five-member commission voted 3-2 to accept a proposed consent order that will settle claims arising from alleged misrepresentations in the online privacy policy of startup Nomi Technologies Inc. Although Nomi does not provide services to consumers, the majority reasoned that the commission properly exercised its power to regulate deceptive acts or practices under Section 5 of the FTC Act because certain representations in Nomi’s consumer-facing online privacy policy — which Nomi was not required to post in the...

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