Some background on the technology (from Wikipedia):
Local Shared Objects (LSO), commonly called flash cookies (due to their similarities with HTTP cookies) are pieces of data that websites which use Adobe Flash may store on a user’s computer. Local Shared Objects are used by all versions of Adobe Flash Player and Version 6 and above of Macromedia’s now-obsolete Flash Player…
The problem with flash cookies, from the user’s perspective, is that they are far more insidious than run of the mill HTML cookies by making it that much harder to avoid getting tracked. The problem, as far as the FTC is concerned, is that ScanScout failed to disclose its use of flash cookies to the users.
The Takeaway: More and more we see that the FTC is absolutely going after companies for “falsely advertising” or, in this case, failing to properly advertise their tracking policies. The settlement here requires ScanScout to, among other things, conspicuously disclose its behavioral tracking policies and opt-out mechanisms.
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