The FTC approved final orders to settle...
The FTC approved final orders to settle charges for U.S.-EU safe harbor enforcement actions it has taken against 14 companies this year, said a Wednesday news release (http://1.usa.gov/1mfjPL7). Companies ranged from retailers like American Apparel, to data brokers like Apperian,…
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to medical facilities like DDC Laboratories and even several NFL teams (CD Jan 22 p9). Four FTC commissioners unanimously approved the final orders, with recently sworn-in Terrell McSweeny not voting. Very few comments were filed during the public comment period. One commenter pushed for the FTC to take action against TRUSTe, which certifies companies’ compliance with various FTC regulations. The FTC responded it “cannot comment on whether it is investigating any particular companies or allegations. However, the Commission takes seriously the role of self-regulatory privacy programs that certify company compliance with the Safe Harbor framework, such as TRUSTe.” The Electronic Privacy Information Center (EPIC) was the only major organization to file a comment (http://1.usa.gov/1lUFAWm). EPIC chastised the FTC for rarely making changes to final orders based on public comments: “It is becoming unclear what purpose is served by the Commission’s request for public comments on a proposed settlement if the agency is unwilling to make any modifications.” It did suggest the FTC’s safe harbor settlements should require companies to comply with the White House’s consumer privacy bill of rights (CPBR) (http://1.usa.gov/1hwy3KA) and that each company’s initial safe harbor compliance report -- required in the consent order -- be made public. EPIC’s suggestions were not incorporated into the final orders. In its response (http://1.usa.gov/1pBTgnj), the FTC said it “supports the goals laid out in the CPBR,” but that “the order is designed to address specific conduct as alleged in the complaint—which did not include substantive violations of the Safe Harbor framework—not to impose obligations that may not be tied to such conduct.” The commission also noted the compliance reports could be made public: “The public may seek access to compliance reports required by the orders by making a request under the Freedom of Information Act,” it said. But the FTC would be required to keep confidential any trade secrets or commercial and financial information about the company, it said.