Good morning! This is the twenty-second edition of the Compliance Connect newsletter.
The goal is simple: to keep you in the loop on what the FTC and other regulatory agencies are up to so that you can protect yourself.
These newsletters will land in your inbox twice a week – Mondays and Thursdays.
Remember: this is NOT legal advice, only information!
Here’s the rundown today…
- 🔍 The FTC Targets Microsoft
- 📱 Meta Investigated By The CFPB
- ⏳ When Will Trump Replace Lina Khan?
- 🚫 Residents Of This State DON’T Like Getting Called!
- 📜 Privacy Policy Keys – Quick Tips
Compliance Digest: What You Should Read Today
FTC Targets Microsoft’s Cloud Business
In what are likely the final days of Lina Khan’s FTC, the FTC is investigating Microsoft’s cloud computing practices for anti-competitive behavior.
The issues the FTC is looking into are…
- High exit fees.
- Increasing subscription fees for those that leave.
- Restrictive licensing that make switching providers difficult.
- Making Office 365 products incompatible with rival clouds.
While Khan is set to be replaced under the next administration, her successors might continue focusing on Big Tech due to bipartisan concerns.
Similar complaints about Microsoft’s cloud practices have also drawn scrutiny from regulators in the UK and EU, with mixed outcomes, including a settlement in Europe.
The growing importance of cloud services, fueled by AI demands, has made competition fierce among major players like Amazon, Microsoft, and Google, leading to accusations of unfair tactics against one another.
Meta Gets Investigated By The CFPB
Meta, the company that owns Facebook, Instagram, and WhatsApp, is facing possible legal action from the Consumer Financial Protection Bureau (CFPB) over its handling of financial product advertisements.
The CFPB is concerned about how Meta discloses information and manages ads from third-party companies on its platforms.
Meta has denied the claims and responded through a formal CFPB process, stating that any enforcement action would be unwarranted.
Under its current leadership, the CFPB has increased its focus on regulating Big Tech companies, including Meta, Google, and Apple.
The agency is also working on a new rule to oversee large digital payment companies and recently fined Apple and Goldman Sachs $89 million for mishandling their Apple Card services.
When Will A New Person Lead The FTC?
The FTC is preparing for leadership changes as the Trump administration prepares to take office in January.
Current FTC Chair Lina Khan, known for her strong stance against corporate consolidation, is unlikely to remain in her role after the inauguration despite past praise by Vice President-elect JD Vance.
Gail Slater, a former FTC lawyer, is helping vet potential candidates for the position and may even be considered herself.
In the meantime, Khan can stay on as a commissioner until a replacement is confirmed, though she is expected to be replaced as chair soon.
Republicans Andrew Ferguson or Melissa Holyoak, both experienced in antitrust cases against Big Tech, are likely to TEMPORARILY lead the FTC during the transition.
The process to appoint a new chair involves Senate confirmation, but President Trump might bypass this through a recess appointment.
While Khan’s antitrust efforts could continue under the new administration, some rules she passed are at risk of being overturned.
Some recent rules, such as those around fake reviews, enjoyed bipartisan support in the commissions. Those will probably stick around.
Other rules, such as the ban non-competes, along with the “click to cancel” rule, were not supported by the Republican commissioners.
This transition signals a shift in priorities for the FTC under new leadership.
For more about the potential ramifications of the new leadership at the FTC, check out this episode of the Don’t Say That podcast.
Did You Know…
In 2021, New Hampshire had the most registrations on the Do Not Call List per capita. Alaska had the least.
Quick Compliance Tip: Privacy Policy
An increasing number of laws at the state, federal and even international level now globally require websites to publish EXACTLY what data they gather and how it may be disseminated.
These include identifiers like:
- Geo-location
- Device details
- Contact information
- Browsing history
Beyond listing these, an effective privacy policy specifies WHY such data is gathered, stored. It also covers how to opt-out of collection, when it might be shared to third parties, and if it’s ever deleted.
These policies do NOT just apply to social media platforms.
Just about EVERY business needs a privacy policy since you will probably at some level handle sensitive customer information.
There is an endless list of cases that were led by the FTC, states, or even privately by consumers that are all about data usage and privacy.
Do NOT simply copy and paste a template privacy policy page.
You want to create a privacy policy that covers the needs and practices of YOUR business. It should probably be done by a lawyer…
In short, the right privacy policy protects users and covers companies legally.
Generic templates found online seldom do. Get a custom one written that specifically caters to your marketing practices.
You also want to make sure that you periodically revisit and edit it, as your marketing evolves and changes.