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FTC Will 'Vigorously Enforce' Privacy Shield, Ohlhausen Says

The FTC plans to continue to “vigorously enforce” the EU-U.S. Privacy Shield as part of the agency's role as the “chief privacy enforcer” in the U.S., said acting Chairman Maureen Ohlhausen during a Financial Times event Wednesday. FTC and International…

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Trade Administration officials said before President Donald Trump's inauguration they were hopeful the commission's commitment to the Privacy Shield would continue after then-President Barack Obama left office (see 1611090016, 1611100039 and 1611210032). “We have committed to investigate Privacy Shield companies on our own initiative,” Ohlhausen said. “We will prioritize referrals from European data protection authorities. And we will monitor our orders to ensure compliance with the framework. When companies don’t comply with orders, we will bring enforcement actions.” The FTC is also committed to working with EU institutions on improving the Shield's effectiveness, including participating in the European Commission's annual review of the framework and meeting with the Article 29 Working Party, Ohlhausen said. The chair said she has been “pleased to see that [the Trump administration] has affirmed its commitment” to the Privacy Shield given the framework's importance to U.S.-based business interests. EU agencies and U.S. businesses sought reassurances from the FTC after Trump's election and inauguration, including whether Trump's executive orders on immigration from some majority-Muslim countries (see 1701290001, 1702060016 and 1702100042) would affect Privacy Shield enforcement. “We don't believe it will,” Ohlhausen said. Enforcement of the Privacy Shield and other international privacy frameworks “is an integral part” of the FTC's cybersecurity and privacy program, Ohlhausen said. She cited the agency's privacy memorandums of understanding with Ireland, the Netherlands and U.K. and the agency's participation in the Global Privacy Enforcement Network. An “ongoing dialogue” with EU partners is necessary because of the ongoing misconception “that this is the Wild West” for privacy, Ohlhausen said. The FTC has “an extremely robust record” on privacy, she said.