End of the Notice Paradigm? : FTC’s Proposed Sears Settlement Casts Doubt On the Sufficiency of Disclosures in Privacy Policies and User Agreements

The Federal Trade Commission’s recent proposed settlement with retailer Sears regarding an alleged failure to adequately disclose the scope of consumer personal information collected by marketing research software is at odds with established industry and regulatory practice. The settlement has the potential to create substantial uncertainty for online commerce, and thereby undercut the clear rules that have helped the Internet become a robust engine of economic growth and consumer choice.