The FTC recently issued a Notice of Penalty Offences (Notice) to certain tax preparation companies concerning the potential misuse of consumer data collected in confidential contexts in violation of the FTCA. The FTC warns that these companies may face civil penalties of up to $50,120 per violation if they misuse personal data in ways that are unrelated to the original purpose for which this information was collected.
In the Notice, the FTC stated it was an unfair and deceptive trade practice to use information collected in a context wherein an individual reasonably expected that such information would remain confidential for any purpose that the individual has not previously provided affirmative, express consent for such use.
