WPP's Compete Settles FTC Deception Charges

WPP-owned online behavioural measurement firm Kantar Media Compete has settled charges brought by the Federal Trade Commission that it 'deceived consumers' by not disclosing the extent of the personal data it was gathering about them.

Boston-based Compete uses tracking software to collect data on the browsing behavior of millions of consumers, and later sells this data to clients.

According to the FTC, Compete encouraged consumers to download its software onto their computers, by inviting them to join a consumer panel promoted through ads which promised rewards in exchange for their opinions about products and services.

The FTC says Compete violated federal law by not disclosing that its tracking software was collecting personal data such as consumers' usernames, passwords and search terms, and also sensitive information such as credit card and financial account information. Additionally, the company allegedly failed to honor promises it made to protect the personal data it did collect.

Several of Compete's business practices were unfair or deceptive and violated the law, says the FTC. For example, the company failed to disclose to consumers that it would collect detailed information such as that provided in making purchases, and not just 'the web pages you visit'.

As part of the settlement, Compete is now required to obtain consumers' express consent before collecting any data from its software downloaded onto consumers' computers. It must also delete or anonymize the use of the consumer data it has already collected, and provide instructions to enable consumers to uninstall its software.

Compete must also implement a security program with independent third-party audits every two years for the next 20 years.

A company called Upromise, which licensed Compete's web-tracking software, settled similar FTC charges earlier this year.

Web site: www.ftc.com and www.compete.com .