Pub. 10 2015-2016 Issue 6

www.nebankers.org 16 Extraordinary Service for Extraordinary Members.  Counselor’s Corner — continued from page 15 The EFT You can TRUST NetWorks is the Electronic Funds Transfer (EFT) service provider that Nebraskans have used and learned to trust like family for over 30 years. Our highly experienced staff is extremely knowledgeable and resourceful when it comes to assisting your institution. Give us a call to learn more about our services, you’ll have the opportunity to talk to someone who truly cares about and understands your EFT service needs. www.netseft.com Toll Free 800-735-6833 Local 402-434-8202 1 Federal Trade Commission, Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues (2016) (hereinafter, “FTC Report”) at 1. 2 Exec. Office of the President, Big Data: Seizing Opportunities, Preserving Values (2014) (herein- after, “White House Report”) at 4. 3 White House Report. 4 FTC Report. See also, Federal Trade Commission, Spring Privacy Series: Alternative Scoring Products (2014) and Federal Trade Commission, Data Brokers: A Call for Transparency and Account- ability (2014). 5 15 U.S.C. §§ 6801-6809. (Given its focus, this was actually not one of threemain federal laws called out in the FTC Report). 6 12 C.F.R. Part 1016. 7 15 U.S.C. § 1681 et seq. 8 Identifying who is a consumer reporting agency will grow in importance as additional big data products come online. Banks would do well to be skeptical of those that disclaim consumer report- ing agency status. FTC Report at 13-14. 9 FTC Report at 15-16. Warning: The FTC even challenged a statement in its own 40 Years FCRA Report about whether information which does not identify a specific consumer can constitute a consumer report. Id. at footnote 85. 10 15 U.S.C. § 1691 et seq. 11 12 C.F.R. Part 202. 12 42 U.S.C. §§ 2000e et seq. 13 42 US.C. §§ 12101 et seq. 14 29 U.S.C. §§ 621 et seq. 15 42 US.C. §§ 3601 et seq. 16 42 U.S.C. §§ 2000ff et seq. 17 FTC Report at 18. 18 FTC Report at 19. 19 FTC Report at 20-21. The DOJ has cited advertis- ing choices as evidence of discrimination in at least one action against a bank. Id. at footnote 121. 20 12 U.S.C. § 5531. 21 FTC Report at 21. 22 See a discussion of the FTC’s 2008 enforcement action against CompuCredit based on a viola- tion of the Federal Trade Commission Act. FTC Report at 22. 23 For example, one credit card company settled FTC allegations that it failed to disclose its practice of rating consumers as higher risk if they used their cards to pay for marriage counseling, therapy, or tire repair, based on the card company’s experi- ences with other consumers. FTC Report at 9. 24 If big data is used for targeting ads, low income consumers who might otherwise be eligible may never receive the ad and become aware that a product is available to them. 25 Big data can, for example, use social media and other information to predict (with a high degree of accuracy) sexual orientation, ethnic origin, re- ligion, political party and alcohol/drug use. Does a bank need to know this about its customers? FTC Report at 10. 26 For example, if the type of browser a person is using correlates with their performance, should For more information, contact Kris Karnes at Kutak Rock LLP at (402) 346-6000 or kristine.karnes@ kutakrock.com . Karnes practices in the areas of corporate and banking law. She serves as counsel to corporate entities and financial institutions for general corporate governance and transactional work, federal and state consumer compliance, mergers and acquisitions, and bank regulatorymatters. You also may contact Bryan Handlos at Kutak Rock LLP at (402) 346-6000 or bryan.handlos@kutakrock. com. Handlos is a member of Kutak Rock LLP’s banking practice group where he concentrates on bank regulatory matters. this be a basis for excluding other browser users from certain opportunities? FTC Report at 10-11. 27 Some online companies charge differently in different zip codes. Could this adversely impact poorer communities? FTC Report at 11. 28 If I opt-out of data collection, but my banker can make still make predictions about me using big data algorithms, should I care? FTC Report at 11. 29 FTC Report at 27. 30 FTC Report at 29. 31 FTC Report at 30. 32 Id.