Are You Using Customers’ Information Illegally?
Do you collect data on your customers?
If you do and you attempt to sell that information, you could run into opposition from the Pennsylvania Attorney General and the Federal Trade Commission (“FTC”).
As more companies are beginning to realize, customer data can become a valuable business asset. The data allows companies to gauge customer interest and better market its products and/or services. Additionally, this information can be sold to others who are interested in marketing to a business's customers. The rise of the internet and internet-connected devices has only made it easier to collect such data.
However, companies need to be cognizant of customers' privacy concerns. Some customers may object to the selling of their information; others may not want this information collected in the first place. The RadioShack settlement serves as a good reminder for companies that: