The Federal Trade Commission has been tasked with finding a solution to deceptive digital data practices at the hands of big tech companies. Indeed, algorithmic disgorgement would act as a deterrent in that companies would be penalized for unfair and deceptive data practices.
Specifically, algorithmic disgorgement maintains that when companies collect data illegally, they should not be able to profit from either the data or any algorithm developed using it. As a result, big technology companies that use data collected through unprincipled means will be deterred from such practices. Algorithmic justice and consumer protection would thus be fostered.
Notably, the FTC first used algorithmic disgorgement in 2019 during the Cambridge Analytica scandal. In particular, Cambridge Analytica was required to destroy the data it collected through unscrupulous means regarding Facebook users. Similarly, the FTC relied on algorithmic disgorgement two years later in the Everalbum case to hold that Everalbum, a photo-sharing app company, must destroy all photography and video content as well as facial and biometric data it gathered from app users and to delete products developed using such data.
Currently, the FTC is demanding that WW International destroy the algorithms built off personal information from its Kurbo healthy eating app and to delete the data acquired illegally, particularly with respect to kid users of the app. Unlike the Cambridge Analytica and Everalbum cases in which the parties were found to have violated the FTC Act, this case holds the party liable under the Children’s Online Privacy Protection Act (COPPA) in addition to the FTC Act. Thus, the agency has the power to bring consumer protection cases against big tech companies under both the FTC Act and COPPA.
In turn, COPPA-related enforcement efforts demonstrate the agency’s willingness to protect children’s personal information, data, and privacy. Ultimately, the goal would be to develop a corollary for everyone that would act as a comprehensive federal privacy law.
Works Cited:
https://www.protocol.com/policy/ftc-algorithm-destroy-data-privacy
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