The Federal Trade Commission is taking action against OkCupid and its affiliate, Match Group, after allegedly violating its privacy policies in sharing millions of users’ data with a third party.
In a complaint filed in the US District Court for the Northern District of Texas, the FTC accuses the dating companies of sharing sensitive personal information with a third party, Clarifai, despite telling users their data would only be disclosed under limited conditions.
Clarifai is a deep learning AI company specializing in facial recognition.
According to the FTC, OkCupid’s privacy policies state that it may share users’ personal information with service providers and other entities, as long as it informs users about the data sharing and gives them a chance to opt out.
The FTC alleges that OkCupid provided Clarifai with access to nearly three million user photos, along with location and other personal information, without notifying users or giving them the ability to opt out.
Officials say the data recipient, identified as Clarifai, was not a service provider, business partner, or affiliate, but sought access because OkCupid’s founders were financial investors.
Says Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection,
“The FTC enforces the privacy promises that companies make. We will investigate, and where appropriate, take action against companies that promise to safeguard your data but fail to follow through—even if that means we have to enforce our Civil Investigative Demands in court.”
Regulators also allege that the companies attempted to conceal the data-sharing arrangement.
According to the complaint, OkCupid denied involvement with the third party even after reports surfaced that large datasets had been transferred, and took steps that the FTC says obstructed its investigation.
Under the proposed settlement, OkCupid and Match are permanently barred from misrepresenting how they collect, use or share personal data, including photos, demographic details and geolocation information.
The order also restricts how the companies describe privacy controls and user choices related to data handling.
If approved by a district judge, the settlement will carry the force of law and impose ongoing compliance obligations on both companies.
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