Eye on Privacy: Tracking What the FTC Tracks
Alternative Scoring Products
Alternative Scoring Products was one of the areas of focus during the FTC’s Spring Privacy Series. The concern appears to be in predictive scoring not covered under the Fair Credit Reporting Act (FCRA) because consumers are unaware it exists and there is potential for consumer harm. The seminar description included examples, such as “whether contacting a consumer by mail or phone will lead to successful debt collection; whether sending a catalog to a certain address will result in an in-store or online purchase; the likelihood that an individual is taking his or her medication; a person’s presence on the Internet and his or her influence over others; or whether a customer is pregnant, and if so, when the baby is due.” Predictive modeling is at the core of successful marketing, so this is an area to watch closely.