On November 8, 2011, the Federal Trade Commission announced that an online advertiser, ScanScout, agreed to settle FTC charges that it deceptively used "Flash" cookies (also known as super cookies) to track consumers online.
As explained by Wired, unlike traditional browser cookies, Flash cookies are not controlled by privacy controls in a Web browser. That means that even if a user adjusts browser settings to clear the computer of tracking objects, Flash cookies most likely will remain.
FTC Allegations
According to the FTC, ScanScout is an advertising network that places video ads on websites for advertisers. ScanScout engages in behavioral advertising – it collects information about consumers’ online activities and then serves video ads targeted to their interests.
The FTC alleged that ScanScout deceptively claimed that consumers could opt out of receiving targeted ads by changing their computer’s Web browser settings to block cookies. Specifically, ScanScout's privacy policy stated that:
General user data, such as your computer’s Internet Protocol (IP) address, operating system and browser type, pages you visited, and the date and time of your visit, is automatically collected through the use of “cookies”. Cookies are small files that are stored on your computer by a website to give you a unique identification. Cookies also keep track of services you have used, record registration information regarding your login name and password, record your preferences and keep you logged into the Site. You can opt out of receiving a cookie by changing your browser settings to prevent the receipt of cookies. Since each web browser is different, we recommend that you please look through your browser “Help” file to learn the correct way to modify your cookies set-up. . . We may use automatically collected information and cookies information for a number of purposes, including but not limited to. . . provide custom, personalized content, and information; monitor the effectiveness of our marketing campaigns. . . (emphasis added)
According to the FTC, however, ScanScout actually used Flash cookies that users could not block by adjusting their Web browser settings. The FTC alleged that ScanScout's representations that consumers could prevent ScanScout from collecting data about their online activities by changing their browser settings were false or misleading and constituted deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.
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