FTC Chairwoman Ramirez: Safe Harbor Uncertainty Is Untenable

Federal Trade Commission Chairwoman Edith Ramirez says that the current climate of uncertainty surrounding cross-border privacy protections is untenable and not good for either businesses or privacy. She was referring to a European Union decision invalidating the "safe harbor" agreement between the US and European Union on the US’s handling of personal information from EU members. Chairwoman Ramirez called the harbor an effective tool — the FTC enforces the harbor and the Commerce Department administers it. She said that negotiators were “well on our way” to reaching a new agreement governing how American companies can store data belonging to Europeans. “In my mind, I’m optimistic that we’re going to be able to find a solution to this, I’m hoping by the end of [Jan],” she said. “But we’re well on our way I think to doing that.”

Chairwoman Ramirez also called for greater transparency on Data collected by the Internet of Things. She said the proliferation of Internet-connected gadgets — from home thermostats to fitness bands to scores of other products on display — raises concerns about the personal information that is being collected, how it’s being used and whether it is adequately secured. She called for greater clarity about these data collection practices and vigilance in protecting this information. “Consumers are going to be slow to take up these products if issues of privacy and security are of a concern,” Chairwoman Ramirez said.