Twelve Companies Settle FTC Act Violations for Non Compliance with EU Safe Harbor Rules

In response to the European Commission’s (“EU”) January 20, 2014 announcement that it will either modify, suspend, or revoke its Safe Harbor decision by summer 2014, the Federal Trade Commission (“FTC”) issued a press release that it reached a settlement with twelve companies which were in violation of the U.S.-EU Safe Harbor Agreement. The FTC said that the companies represented a cross-section of industries. The agency further stated that the offenses were not substantive violations of the EU’s privacy principles. According to the FTC, the companies involved deceptively claimed to have current DOC safe harbor certification. The FTC alleged that all twelve companies stated in privacy policies or marketing materials that they were certified under the Safe Harbor, when in fact they did not maintain active certifications. Three falsely claimed to be certified under a separate privacy framework between the U.S. and Switzerland.