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| Vendor Vetting
July 2 2018

FTC charges related to privacy shield participation settled

The Federal Trade Commission reports how ReadyTech Corporation, a California-based company, falsely claimed it was in the process of being certified as complying with the EU-US Privacy Shield agreement​ which establishes a process to allow companies to transfer consumer data from European Union countries to the United States in compliance with EU law.  

According to the FTC’s complaint, the Commission alleges that ReadyTech Corporation, 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 an application to the U.S. Department of Commerce in October 2016, the company did not complete the steps necessary to participate in the Privacy Shield framework. The Department of Commerce administers the framework, while the FTC enforces the promises companies makewhen joining the Privacy Shield.   ReadyTech Corporation has agreed to settle Federal Trade Commission

“Today’s settlement demonstrates the FTC’s continuing commitment to vigorous enforcement of the Privacy Shield,” FTC Chairman Joe Simons commented. “We believe Privacy Shield is a critical tool for ensuring transatlantic data flows and protecting privacy that benefits both companies and consumers.”