United States of America: Issued FTC warning against tax preparation platforms about misuse of consumer data

On 18 September 2023, the Federal Trade Commission (FTC) issued a warning against five tax preparation companies about misuse of consumer data. In particular, the FTC is warning five tax preparation platforms in the US that they could face fines if they misuse consumers' private data collected for tax purposes by using it for unrelated activities, such as advertising, without their consent. The FTC' noted that non-compliant platforms face penalties of up to USD 50’120 per violation. Moreover, the FTC emphasises the importance of obtaining explicit consent from consumers before using their data for purposes beyond tax preparation. The FTC will consider misusing data, deriving separate financial gains, or using it for advertising without consent as unfair or deceptive practices under the Federal Trade Commission Act.