What Is Consumer Privacy Law?

Consumer Privacy Law

Consumer privacy law is the legal area covering violations of personal information and the right to privacy in everyday life, including violations relating to technology use and finances. Consumer privacy laws and regulations protect individuals from privacy loss due to the failures and limitations of corporate customer privacy measures. The Federal Trade Commission (FTC) is the primary agency directing federal privacy policies and enforcing associated regulations. The FTC utilizes law enforcement, creates policy, and educates consumers as it acts to protect privacy. Legal action can be taken against organizations that violate consumer privacy rights, especially regarding sensitive information.

The first federal consumer privacy law was the Fair Credit Reporting Act. Defendants have also been charged with violating Section 5 of the FTC Act, which makes unfair and deceptive practices that affect commerce illegal. The Gramm-Leach-Bliley Act requires financial institutions to explain information-sharing practices to consumers and to protect sensitive information. Additional federal laws govern areas such as credit reporting, identity theft, children’s privacy, and the sharing of medical information.