NEWS22 December 2011

FTC approves ScanScout Flash cookie settlement

Legal North America

US— The Federal Trade Commission (FTC) has finalised a settlement with online advertising firm ScanScout over its use of Flash ‘cookies’ to track online consumer behaviour.

The settlement bars the company from misrepresenting its data-collection practices and requires it to make it simpler for consumers to control the collection of their information.

ScanScout agreed to settle the complaint in November. The FTC claimed the firm had used Flash cookies deceptively to track consumers online. ScanScout’s privacy policy told consumers that they could opt out of receiving cookies by changing their browser settings, but that did not block or remove the Flash local shared objects – commonly referred to as cookies – that ScanScout used, the FTC said.

The approval of the final settlement follows a public comment period.