There Is Such A Thing as Too Much Transparency

A recent FTC complaint against Nomi Technologies, a firm whose technology collects information from retail shoppers’ electronic devices while they are in stores, highlights the dangers of companies being too open about their privacy policies. The FTC found that Nomi misled consumers by claiming to allow them to opt out of its tracking on-site, when in fact shoppers had to visit Nomi’s website to opt out. Nomi may not have needed to disclose any information on opting out, Fox Rothschild attorney Elizabeth Litten notes, as the data it collected was automatically encrypted, retaining the shoppers’ anonymity.