Turn Settlement Puts 'Zombie' Cookie Case to Bed

Ad technology company Turn has settled with the FTC over charges that it misled consumers about opting out of tracking. The company has not admitted fault and says it settled in order to avoid 'a lengthy and costly litigation'.

Redwood City, CA-based Turn, which operates a demand side and a data management platform (DSP and DMP), appeared to have dodged the litigation when its former partner Verizon was fined $1.35m by the FCC in connection with the practices early in 2016. However, in August the suit - like the 'zombie' cookies installed - returned when a federal appellate court decreed Turn still had questions to answer.

With the new agreement, Turn is now providing an effective opt-out for consumers and features a link to it prominently on its home page. The settlement order is subject to public comment until January 19th, when the Commission will decide whether to make the agreement final. If so, Turn will subsequently be liable for a civil penalty of up to $40,000 for any breaches.

Jessica Rich, Director of the FTC's Bureau of Consumer Protection, said of the case: 'Turn tracked millions of consumers online and through mobile apps even if they had taken steps to block or limit tracking. The FTC's order will ensure the company honors consumers' privacy choices'.

Turn says the settlement 'validates the steps it took early in 2015, when it terminated the partnership [with Verizon] and ceased using the latter's Wireless identifier'.