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Avoiding the Pitfalls of Data Mining

Jaclyn Jaeger | July 14, 2015

Thanks to advances in technology, companies now have more ways than ever before to amass troves of personal data on consumer practices and to generate business in a more targeted fashion. But such data mining practices are proving to be a sore spot for compliance and enforcement risks.

In recent months, numerous companies have found themselves the target of legal and enforcement actions that easily could have been avoided. Many of these complaints, for example, are the result of companies not obtaining proper consent to collect personal data, overstepping the boundaries of consent, or not giving individuals the right to opt-out.

“If companies simply complied with their own policies, if they gave full disclosure or obtained full consent, a lot of these actions couldn’t be brought,” says Mark Eisen, an associate with law firm Sheppard Mullin. Consistently updating terms of use and privacy policies to ensure you’re abiding by your own terms can mitigate a lot of the...

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