According to Section 5 of the FTC Act, self-regulation primarily involves a company’s right to do what?
According to Section 5 of the FTC Act, self-regulation primarily involves a company’s right to do what?
Self-regulation primarily involves a company’s commitment to adhere to its industry’s code of conduct. This reflects the idea that companies voluntarily follow established guidelines and standards set by their respective industry groups. Such adherence is designed to ensure compliance with certain principles and maintain industry trust without direct external enforcement.
See IAPP book, Section 3.10, paragraph 2.
Definitely C
For enforcement under Section 5 of the FTC Act or state UDAP laws, self-regulation only occurs at the quasi-legislative stage (i.e., voluntary industry rulemaking). A company writes its own privacy policy, or an industry group drafts a code of conduct that companies agree to follow. Under Section 5, the FTC can then decide whether to bring an enforcement action, and adjudication can occur in front of an ALJ, with appeal to federal court. The NAI(self-regulation) publishes a code of conduct that contains detailed requirements describing how its members must provide notice of their privacy practices separation-of-powers components: legislation, enforcement and adjudication.80 Legislation refers to the question of who should dene appropriate rules for protecting privacy. Enforcement refers to the question of who should initiate enforcement actions. Adjudication refers to the question of who should decide whether a company has violated the privacy rules, and with what penalties