FTC settles with companies over false safe-harbor claims

The Federal Trade Commission (FTC) settled with two companies on Tuesday after they falsely claimed to comply with the U.S.-EU Safe Harbor.

The international privacy framework allows U.S. companies to transfer consumer data from the EU to the U.S. while complying with EU law, according to a FTC press release. TES Franchising, LLC and American International Mailing, Inc. allegedly said they were certified under the Safe Harbor pact, but their certifications had expired years prior.

The companies have to self-certify with the Department of Commerce each year to demonstrate their compliance with seven privacy principles the EU requires for its “adequacy standard.”

The proposed settlements would prohibit the companies from misrepresenting their accordance with any privacy or data security framework.

TES also cannot misrepresent its participation in or the terms of any alternative dispute resolution process or service, the FTC wrote.

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