FTC Approves Final Order in Nomi Technologies Case

The FTC approved its final order against retail location tracker Nomi Technologies, after the close of the public comment period, the agency said in a news release Thursday. Nomi was accused of misleading consumers about the available choices to opt out of the company’s mobile device tracking program (see 1504230036) and will now be “prohibited from misrepresenting consumers’ options for controlling whether information is collected, used, disclosed or shared about them or their computers or other devices, as well as the extent to which consumers will be notified about information practices,” the release said. The commission vote to approve the final order was 3-1, with Commissioner Maureen Ohlhausen dissenting. Commissioner Julie Brill issued a statement saying “this order provides companies with an incentive to periodically review the statements they make to consumers, and make sure their practices line up with those statements.” Brill said Ohlhausen “expresses concern that our order will deter companies from offering privacy choices in the marketplace,” but it’s because of the order that Nomi no longer offers a deceptive choice. In her dissenting statement, Ohlhausen said the enforcement action may “undermine the FTC’s own established privacy goals,” saying commenters (see 1505270012) generally agreed the order would “diminish companies’ incentives to be transparent about their privacy practices,” and would “discourage companies from offering privacy choices to consumers.” Brill tweeted Thursday that the order makes the point that “basic consumer protection principles apply to new technologies.” Nomi had no comment.