The Federal Trade Commission has given final approval to a settlement with ReadyTech Corp., over allegations that it falsely claimed it was in the process of certifying its compliance under the EU-U.S. Privacy Shield framework.
The framework establishes a process to allow companies to transfer consumer data from European Union countries to the United States in compliance with EU law. In its complaint, the FTC alleges that ReadyTech, which provides online training services, falsely claimed on its website that it is “in the process of certifying that we comply with the U.S.-E.U. Privacy Shield framework.” While ReadyTech initiated a Privacy Shield application in October 2016, the company did not complete the steps necessary to participate in the Privacy Shield framework.
As part of the settlement, ReadyTech is prohibited from misrepresenting its participation in any privacy or security program sponsored by a government or any self-regulatory or standard-setting organization, including but not limited to the EU-U.S. Privacy Shield framework and the Swiss-U.S. Privacy Shield framework. It also must comply with standard reporting and compliance requirements.
The FTC received three comments on the settlement. The Commission voted 4-0-1 to give final approval to the settlement and to send responses to the three commenters. Commissioner Christine S. Wilson did not participate.
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