FTC investigates cloud computing

The Federal Trade Commission is examining the privacy and data security implications of cloud computing services for consumers. InformationWeek reports that this decision stemmed from the Federal Communications Commission's decision to look into how broadband and data portability issues relate to cloud computing, identity and privacy.

The FCC is taking on this task as part of its efforts to formulate a National Broadband plan. And the FTC is taking on its inquiry as part of its role in protecting consumers. The outcome of this probe will have ramifications for both the private and public sectors.

"[T]he ability of cloud computing services to collect and centrally store increasing amounts of consumer data, combined with the ease with which such centrally stored data may be shared with others, create a risk that larger amounts of data may be used by entities in ways not originally intended or understood by consumers," wrote FTC attorney David C. Vladeck in a letter to FCC Secretary Marlene H. Dortch.

The FTC is tasked with protecting consumer privacy. Vladeck noted that the agency has brought more than two dozen legal actions since 2001 against businesses that failed to adequately protect consumer privacy.

For more on the FTC cloud investigation:
- see this InformationWeek article

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