FTC Approves Final Orders in U.S.-EU Safe Harbor Cases
The FTC approved its final orders resolving its complaints against TES Franchising and American International Mailing for “deceiving consumers about their participation in international privacy frameworks” Friday, after a public comment period, an FTC news release said. The settlements were…
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first announced in April (see 1504070026). The commission vote to approve the final orders was 5-0. The FTC alleged the websites for TES Franchising and American International Mailing “indicated they were currently certified” under the safe harbor frameworks, enabling U.S. companies to transfer consumer data from the European Union to the U.S. in compliance with EU law, “when in fact their certifications had lapsed years earlier,” the FTC said. In its complaint against TES, the FTC also alleged TES “deceived consumers about the nature of its dispute resolution procedures,” and “deceptively claimed to be a licensee of the TRUSTe Privacy program,” the FTC said. TES Project Manager Marissa Ruderman previously told us the company hadn't complied with the safe harbor laws because information about renewing the safe harbor subscription had been sent to an individual who was no longer with the company (see 1504090029). Once Ruderman was notified TES was out of compliance, she said, she contacted safe harbor officials and resolved the issue within a week or two. Ruderman said the settlement with the FTC is not monetary, but involves the company's acknowledging it missed the deadline to renew its safe harbor subscription and pledging to not let it happen again. TES and American International Mailing had no immediate comment Friday.