This post was also written by Christopher G. Cwalina, Steven B. Roosa and Frederick Lah.

Online advertising network ScanScout, Inc. has agreed to settle the FTC’s charges that it deceptively represented that users could opt out of receiving targeted ads by changing their Web browser settings to block and delete cookies. The consent decree stems from the FTC’s charges that ScanScout’s privacy policy did not adequately inform users about the use and management of Flash local shared objects, otherwise known as “Flash cookies”, from being placed on their computers. This news is just the latest progression with the Flash cookie issue. In addition to the ongoing threat of Flash cookie-related litigation, companies should now be put on notice that the failure to properly disclose the use of Flash cookies can result in FTC enforcement. The following client alert provides more detail about the consent decree itself and lists some steps that every company with an online presence should take with regard to their use of Flash cookies and other data collection technologies. Please feel free to pass this along to any client who may find it relevant.

To view the entire alert, please click here.