Mergers and privacy promises

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Every company takes a different approach to how it collects, maintains, and shares consumers’ personal information. Companies that want to do right by their customers are careful to explain how they handle that data. That way, consumers will know how their data will be treated. But what happens when a company changes owners or merges with another entity? Do the representations the company made to consumers before a merger about how their information will be used apply after the merger? Are there limits on how it can be used and shared? The Federal Trade Commission recognizes that to innovate and keep pace in today’s economy, businesses may acquire other companies or sell business units. However, companies must still live up to their privacy promises. One company’s purchase of another doesn’t nullify the privacy promises made when the data was first collected. When a purchase or acquisition does occur, companies have two choices. They can simply abide by their promises -- that is, handle the data as promised when they collected it from consumers. Or, if they want to materially change how they collect, use, or share consumers data, they must get permission from the consumers to whom they made the original promise.


Mergers and privacy promises