Beyond the above-mentioned acts, the FTC has made clear to Internet service providers they are expected to abide by the privacy policies posted on their websites. Recently, the FTC took action against at least one “virtual community website”—consisting of the home pages of millions of members—which was providing information to third parties compiled from members in violation of its own privacy policies. The FTC suggested in a release after the case was settled that “statements about information practices must be accurate and complete.” If a retailer or other service provider states in a privacy policy it will not disseminate information, the FTC will step in if that policy is violated.
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