Allegations of Privacy Act Violations

Allegations of Privacy Act Violations

Brandy L. Mingus

Upper Iowa University

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As technology continues to evolve, the nexus between innovation and consumer privacy

is becoming an increasingly important area of regulatory scrutiny. Federal Trade Commission

(FTC) enforcement actions were taken against Lenovo and Vizio, two prominent technology

manufacturers, in 2018.Surreptitious collection and transmission of user data was alleged to have

compromised consumer privacy at both companies this essay explores the intricacies of these

cases, shedding light on the allegations, the resulting settlements, and their broader implications

for the delicate balance between technological progress and individual privacy rights.

In 2018, the Federal Trade Commission (FTC) initiated significant enforcement actions

against technology manufacturers Lenovo and Vizio, resulting in substantial settlements. These

actions underscored the importance of consumer privacy protection and raised concerns about

pre-installed software practices in the tech industry.

According to their allegations, Lenovo sold computers in the U.S. that were pre-installed

with software that transmitted consumer information. As part of a joint enforcement action with

the New Jersey Attorney General's Office, the FTC took enforcement action against Lenovo.

According to the decision and order of the FTC, the consent agreement is detailed in the

decision. Lenovo committed to obtaining the affirmative consent of consumers before installing

such software. In addition to the mandate, the company had to establish a comprehensive

software security program for preloaded software.

Vizio, a manufacturer of "smart" televisions, found itself in the regulatory spotlight as

well. There were allegations that the company installed software on its televisions to secretly

collect consumer data without their consent. As part of the settlement, Vizio paid $2.2 million,

deleted unlawfully collected data, and implemented measures to enhance transparency and data
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security. The company committed to disclosing all data collection and sharing practices,

obtaining express consent from consumers for data collection or sharing activities, and

establishing a robust data security program.

These settlements underscore the growing importance of safeguarding consumer privacy

in an era where technology companies are entrusted with vast amounts of personal information.

The regulatory actions taken by the FTC demonstrate a commitment to holding companies

accountable for unauthorized data practices, promoting transparency, and ensuring that

consumers have control over their sensitive information. The Lenovo and Vizio cases serve as

crucial examples of the ongoing efforts to balance technological advancements with robust

privacy protections.

The enforcement actions against Lenovo and Vizio in 2018 stand as pivotal moments in

the ongoing discourse surrounding consumer privacy and technology. The settlements reached

with these technology giants underscore the imperative for transparency, affirmative consent,

and robust data security measures in the digital age. As we navigate a landscape where personal

information is an increasingly valuable commodity, the regulatory responses exhibited by the

FTC set a precedent for holding companies accountable for privacy violations. The Lenovo and

The Vizio cases serve as cautionary tales, reminding both industry players and consumers of the

importance of safeguarding individual privacy rights. The outcomes of these cases reverberate

beyond the specific allegations, contributing to a broader discourse on how regulatory,

frameworks can adapt to the challenges posed by evolving digital landscapes, ensuring a future

where technology coexists harmoniously with the fundamental right to privacy.

Allegations of Privacy Act Violations

References

Case studies: High-Profile Cases of Privacy Violation. (2019, February 21). SGR Law;
Smith, Gambrell & Russell, LLP. https://www.sgrlaw.com/ttl-articles/case-
studies-high-profile-cases-of-privacy-violation/

Lenovo Settles FTC Charges it Harmed Consumers With Preinstalled Software on its
Laptops that Compromised Online Security. (2017, September 4). Federal Trade
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Commission.
https://www.ftc.gov/news-events/news/press-releases/2017/09/lenovo-settles-ftc-
charges-it-harmed-consumers-preinstalled-software-its-laptops-compromised-
online