Question

Jorgeson Co., on its Web site, promised the company would not give PII to third parties without the customers consent, but then gave out such information. This practice violates Section 5 of the FTC Act.

A True
B False

Answer 1

The action of Jorgeson Co. in giving PII to third parties without consent is a violation of Section 5 of the FTC Act, which prohibits deceptive trade practices. The FTC, alongside the FCC, actively enforces rules to protect consumers' personal information and online privacy.

Step-by-step explanation:

The practice of Jorgeson Co. promising not to give out Personal Identifiable Information (PII) to third parties without customers' consent, and then doing so without such consent, would violate Section 5 of the FTC Act. This section of the Act is designed to prevent deceptive practices and protect consumer privacy, making Jorgeson Co.'s actions unlawful.

The Federal Trade Commission (FTC) enforces these rules and takes action against companies that engage in such deceptive or unfair acts or practices. Additionally, the FTC and the Federal Communications Commission (FCC) work jointly to protect consumers from internet scammers and deceptive trade practices, including issues related to online privacy and security.

Online privacy and security are critical concerns, especially in light of recent large-scale data breaches. Laws like the Children's Online Privacy Protection Act (COPPA) in the U.S., along with more robust data privacy laws in European countries, underline the importance of lawful data handling. The FTC's enforcement of these privacy standards ensures that individual's personal cyber data is protected.