What Is Consumer Tracking Law?

Consumer Tracking Law

Companies analyze consumers’ online activities by tracking their behavior. There is no specific consumer tracking law in the U.S. at the federal level; however, Federal Trade Commission Behavioral Advertising Principles recommend that websites disclose data collection policies that are used to create targeted marketing. The legal areas of consumer tracking deal with how websites, analytics companies, advertisers, plug-in providers, and other online services track users via first- and third-party cookies, as well as other methods. Consumers do have the option to use the Do Not Track (DNT) settings available in web browser settings, though companies do not have to legally follow DNT requests. If a company adopts a policy of honoring Do Not Track requests, it is legally required to follow that policy. The FTC also has guidelines for the collection of user location data by mobile apps when the apps are not in use.

Some states have also passed laws addressing areas such as website privacy policies and the protection of personal data stored by Internet service providers, so it is important for companies to also consider state consumer tracking laws.