It is interesting to see the FTC figure out how to deal with consumer privacy as it applies to the Web and the Internet. It is clever how they are using the policies the companies themselves have published on their Web sites as the means of enforcement: break your own rules and you wind up in trouble. In some ways this is a more effective means of enforcement than legislation.
Recently, the FTC issued a staff report outlining their suggestions and their plans for the protection of consumer privacy. It is interesting to note that they have taken some Canadian ideas for their plan. Notably, the Ontario Privacy's commisioner's Privacy by Design ideas.
It is a document worth reading as we bring our clients businesses into the Web. Rather than accidently collecting information, accidently releasing it, or using it without permission we can engage our clients and prospective clients. Indeed, making them better clients, since we protect their information as if it were our own.