Compliance Management, Privacy

Companies settle over false data security framework compliance claims

Twelve U.S. companies have agreed to settle Federal Trade Commission (FTC) charges, which accuse the firms of falsely claiming to comply with an international data security framework.

The firms allegedly claimed to hold certifications under the U.S.-EU Safe Harbor framework, which facilitates the safe transfer of consumer data from the European Union to the U.S.

According to a Tuesday FTC release, the companies come from a diverse set of industries, including retail, sports, science, debt collection and even the information security sector. Among the firms that have agreed to settle, are the Atlanta Falcons Football Club, peer-to-peer (P2P) file sharing network BitTorrent, internet service provider Level 3 Communications, and encrypted email and secure file transport provider DataMotion.

Under the terms of the settlement, the companies are barred from misrepresenting their participation in government sponsored privacy or data security programs.

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