FTC Settles With Six Companies For Safe Harbors Claims
On October 6, 2009, the FTC announced settlements with six American companies who were alleged to have deceived consumers by falsely claiming that they were complying with the Safe Harbors framework that was put into place to legitimize transfers of personal data from the EU to the US, in order to meet the requirements of EU Directive 95/46/EC (the “Directive”).
The FTC had issued separate administrative complaints against the six companies (In the Matter of World Innovators, Inc., FTC, No. 0923137, settlement announced 10/6/09; In the Matter of Expatedge Partners, LLC, FTC, No. 092-3138, settlement announced 10/6/09; In the Matter of Onyx Graphics, Inc., FTC, No. 092-3139, settlement announced 10/6/09; In the Matter of Directors Desk LLC, FTC, No. 092-3140, settlement announced 10/6/09; In the Matter of Progressive Gaitways LLC, FTC, No. 092-3141, settlement announced 10/6/09; In the Matter of Collectify LLC, FTC, No. 092-3142, settlement announced 10/6/09.).
This announcement is very significant. Although the Safe Harbors framework has been in place since 2000, until recently the FTC has not brought any enforcement actions under it. The only prior action occurred in July of this year. (FTC v. Javian Karnani C.D. Cal., No. 09-CV-5276 temporary restraining order filed 7/31/09).
The actions may help to bolster the credibility of the safe harbors program, which needed an image boost. The lack of enforcement actions under Safe Harbors has been of concern to many privacy advocates and has called many to question whether Safe Harbors is an effective framework for ensuring that the requirements of the Directive are being met through the program. These enforcement actions are also further evidence of a more active and aggressive FTC.
Comments
Leave a Reply
This website, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice. The views expressed on this blog are my personal views alone and do not necessarily reflect views of my employer.
-
ABOUT
Jacqueline Klosek, Senior Counsel in the Business Law Department of Goodwin Procter LLP, is a frequent author and commentator on data privacy and security. You can email her at jacquelineklosek@gmail.com -
BOOKS
