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Daily Dashboard | FTC Settles With Two Companies on False Safe Harbor Claims Related reading: MedData data breach lawsuit settled for $7M

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Two U.S.-based businesses have agreed to settle charges they falsely claimed to abide by the EU-U.S. Safe Harbor Framework. The Federal Trade Commission (FTC) alleged TES Franchising and American International Mailing indicated they were Safe Harbor-compliant when their certifications had run out years earlier. FTC Chairwoman Edith Ramirez said the FTC is “strongly committed” to enforcing the EU-U.S. and Swiss-U.S. Safe Harbor frameworks, noting, “These cases send an important message that businesses must not deceive consumers about whether they hold these certifications, and by extension, the ways in which they protect consumers.” Under the settlement agreements, the companies must not misrepresent claims they follow or participate in privacy or data security programs sponsored by the government or any other self-regulatory or standard-setting organizations.
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