The FTC Act grants the U.S. Federal Trade Commission (FTC) the authority to enforce fair business practices and protect consumer privacy. The Trade Commission enforces even stricter regulations for the health, insurance, and financial sectors. Also applying to organizations that develop mobile applications, it ensures they provide accurate and transparent information about data collection and protection.
Section 5 (15 U.S.C. § 45) prohibits unfair or deceptive acts or practices affecting commerce. This section forms the foundation for the FTC’s authority to act against businesses that engage in deceptive or unfair practices related to mobile data, including misleading statements about data collection, use, or security.
Section 6 (15 U.S.C. § 46) grants the FTC authority to investigate and prevent unfair methods of competition and unfair or deceptive acts or practices. This section is often invoked by the Federal Trade Commission in cases involving privacy and data security violations.
Becoming compliant with the FTC Act requires businesses to have visibility on how they collect, use and secure personal data. Furthermore, all places where data is stored or accessed should be secured.
For mobile applications, it means being aware of all data manipulations performed by an application, with Static Application Security Testing and Compliance Audit, which both reveal data processing and their safety.
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