FTC Staff Report Finds Many Internet Service Providers Collect Troves of Personal Data, Users Have Few Options to Restrict Use

Many internet service providers (“ISPs”) collect and share far more data about their customers than many consumers may expect—including access to all of their Internet traffic and real-time location data—while failing to offer consumers meaningful choices about how this data can be used, according to the Federal Trade Commission (“FTC”) staff report on ISPs’ data collection and use practices.

The staff report, which details the expanding scope and some troubling aspects of some ISP data collection practices, stems from  orders the FTC issued in 2019 using its authority under 6(b) of the FTC Act to six internet service providers, which make up about 98 percent of the mobile Internet market:

  • AT&T Mobility LLC;
  • Cellco Partnership, which does business as Verizon Wireless;
  • Charter Communications Operating LLC;
  • Comcast Cable Communications, which does business as Xfinity;
  • T-Mobile US Inc.; and
  • Google Fiber Inc.

The FTC also issued orders to three advertising entities affiliated with these ISPs: AT&T’s Appnexus Inc., rebranded as Xandr; Verizon’s Verizon Online LLC; and Oath Americas Inc., rebranded as Verizon Media. The FTC sought information on their data collection and use practices, as well as any tools provided to consumers to control these practices. 

Many of the ISPs claim to offer consumers choices about how their data is used and allow them to access such data. The FTC found, however, that many of these companies often make it difficult for consumers to exercise such choices and sometimes even nudge them to share even more information. In addition, while several of the ISPs promise to only keep the data for as long as needed for business purposes, the definition of what constitutes a “business purpose” varies widely among the companies.

The report concludes that many of the ISPs’ data collection and use practices mirror problems identified in other industries and underscore the importance of restricting data collection and use.

You can find the full text of the report here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr