FTC Gives Final Approval to Settlement with Background Services Provider over Allegations Related to Privacy Shield

The Federal Trade Commission has given final approval to a settlement with a New York company over allegations it misrepresented its participation in and compliance with the EU-U.S. Privacy Shield framework, which enables companies to transfer consumer data legally from European Union countries to the United States.

The FTC alleged that T&M Protection Resources, LLC, which provides security and background check services, continued to claim participation in the EU-U.S. Privacy Shield after its certification lapsed. In addition, the company failed to verify annually that statements about its Privacy Shield practices were accurate and failed to affirm that it would continue to apply Privacy Shield protections to personal information collected while participating in the program.

As part of the settlement, T&M is prohibited from misrepresenting its participation in the EU-U.S. Privacy Shield framework, any other privacy or data security program sponsored by the government, or any self-regulatory or standard-setting organization. In addition, T&M is required either to continue to apply the Privacy Shield protections to personal information it collected while participating in the program or to return or delete the information.

After receiving no comments, the Commission voted 5–0 to finalize the settlement.

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