FTC Accepts Final Settlement with Online Advertiser Scan Scout, Which Allegedly Used Flash Cookies to Track Consumers

Following a public comment period, the Federal Trade Commission has finalized a settlement order with online advertiser ScanScout, which the FTC alleged deceptively claimed that consumers could opt out of receiving targeted ads by changing their browser settings. The settlement, which was first announced on November 8, 2011, bars misrepresentations about the company's data-collection practices and consumers' ability to control collection of their data. It also requires that ScanScout take steps to improve disclosure of its data collection practices, and to provide a user-friendly mechanism that allows consumers to opt out of being tracked.

The final settlement order was approved by a vote of 4-0. (FTC File No. 102 3185, the staff contacts are Kandi Parsons 202-326-2389 and Jamie Hine 202-326-2188.)