Mobile Phone Manufacturer Settles with FTC Over Allegations that Its Vendor Collected Personal Data without Consent

By Melanie Ramey Mobile phone manufacturer BLU Products, Inc. entered into a settlement agreement with the FTC last week to resolve allegations that one of BLU’s China-based vendors collected personal information about its consumers without proper consent. The settlement agreement, which took the form of a consent order, applies not only to BLU but also to its CEO and any other companies he owns and controls.  It requires that the company clarify its disclosures regarding customer data use and protection. It also requires BLU to implement a new data security program. In the new security program, BLU must address security risks related to the development and management of new and existing covered devices and must better protect the security, confidentiality, and integrity of personal information. These improved protections include developing and using reasonable steps to select and retain service providers capable of appropriately safeguarding consumer personal…

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