Yesterday we looked at the SEC and its involvement in the world of social media. The impact of even the thought of raising a big government agency’s eyebrow in this environment is enough to send the most daring social media companies to the corner for a time out to think about what they are doing.
Yesterday, Reuters reported that another of the US government’s big boys, the FTC (Federal Trade Commission), fired a warning shot across the bow of Internet companies regarding proper collection and use of data for advertising.
FTC Chairman Jon Leibowitz said that
Companies that track consumer behavior on the Web for targeted advertising without proper consent are near their “last chance” to self-regulate.