QuestionQ186

Federal Privacy Laws

What was distinctive about the action that the Federal Trade Commission brought against B.J.’s Wholesale Club in 2005?

  • A It made third-party audits a penalty for policy violations.
  • B It was based on matters of fairness rather than deception.
  • C It was the first substantial U.S.-EU Safe Harbor enforcement.
  • D It made user consent mandatory after any revisions of policy.
Explanation

The action was the FTC’s first data-security enforcement case grounded in unfairness rather than deception: inadequate safeguards for consumer information were alleged to cause substantial, unavoidable consumer injury, even though B.J.’s had not made an express security promise.

Learn more

Community Discussion

No comments yet. Be the first to start the discussion!