What does the FTC consider an unfair practice?

The Federal Trade Commission (FTC) defines unfair practices as actions that cause substantial injury to consumers, which they cannot reasonably avoid, and that are not outweighed by countervailing benefits to consumers or competition. In this context, not following reasonable practices in data handling aligns with the FTC's mission of protecting consumers by ensuring that their personal information is handled in a lawful and fair manner.

Data handling encompasses a range of practices, including the collection, storage, and processing of personal information. When entities do not follow reasonable practices—such as neglecting security measures or failing to provide adequate data protection—they can expose consumers to risks like identity theft, privacy breaches, and various forms of harm. This lack of adherence to standards represents a significant concern for the FTC, which aims to prevent such injuries and promote responsible data management approaches among businesses.

Utilizing misleading advertising and manipulating consumer emotions are also concerning practices but are categorized differently under deceptive trade practices rather than unfair practices. Failing to comply with legal standards can also constitute unfair practices, but specifically, it is the unreasonable data handling that illustrates a clear breach of ethical consumer treatment highlighted by the FTC’s guidelines.