FTC Approves Final Orders In US-EU Safe Harbor Cases

After a public comment period, the Federal Trade Commission has approved final orders resolving the Commission’s complaints against TES Franchising, LLC and American International Mailing, Inc., for deceiving consumers about their participation in international privacy frameworks. The settlements were first announced in April. In its complaints, the FTC alleged that the companies’ websites indicated they were currently certified under the US-European Union Safe Harbor Framework and, in the case of TES Franchising, the US-Swiss Safe Harbor Framework, when in fact their certifications had lapsed years earlier.

In addition, the FTC alleged that TES Franchising deceived consumers about the nature of its dispute resolution policies. Under the terms of the orders, the companies are prohibited from misrepresenting the extent to which they participate in any privacy or data security program sponsored by the government or any other self-regulatory or standard-setting organization. The settlement with TES further prohibits the company from misrepresenting its participation in or the terms of any alternative dispute resolution process or service. The Commission votes to approve the final orders were 5-0.