FTC Finalizes Settlement with California Tech Company Related to Privacy Shield

The Federal Trade Commission has finalized a settlement with a California technology company over allegations that it falsely claimed participation in 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 Medable, Inc., falsely claimed in its privacy policy that it was a certified participant in the EU-U.S. Privacy Shield framework and adhered to the program’s principles. As part of the settlement with the FTC, Medable 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.

After receiving no comments on the proposed settlement, the Commission voted 5-0 to give final approval to the settlement.

Rafael Moscatel is Managing Director of Compliance and Privacy Partners, a consulting firm specializing in data governance and privacy solutions. He is an award-winning Information Governance Professional (IGP), Certified Records Manager (CRM), Certified Information Privacy Manager (CIPM). Rafael has spent the last twenty years developing large-scale Information Management Programs for the Fortune 500 including Paramount Pictures and Farmers InsuranceReach him at 323-413-7432, follow him on Twitter at @rafael_moscatel or visit http://www.capp-llc.com to learn more.

FTC Finalizes Settlement with Utah Company and its former CEO over Allegations they Failed to Safeguard Consumer Data

The Federal Trade Commission has granted final approval to a settlement with a Utah-based technology company related to allegations that the firm failed to put in place reasonable security safeguards, allowing a hacker to access the personal information of more than a million consumers.

The FTC alleged that InfoTrax Systems, L.C. and its former CEO Mark Rawlins failed to use reasonable, low-cost, and readily available security protections to safeguard the personal information they maintained on behalf of InfoTrax’s business clients. As a result of the company’s alleged security failures, a hacker infiltrated InfoTrax’s server, along with websites maintained by the company on behalf of clients, more than 20 times from May 2014 until March 2016. The hacker accessed consumers’ sensitive personal information, including Social Security numbers, according to the FTC’s complaint.

As part of the settlement with the FTC, InfoTrax and Rawlins are prohibited from collecting, selling, sharing, or storing personal information unless they implement an information security program that would address the security failures identified in the complaint. In addition, the settlement requires the company and Rawlins to obtain third-party assessments of their companies’ information security programs every two years.

After receiving no comments on the settlement, the Commission voted 5-0 to finalize the settlement order with InfoTrax and Rawlins.

Rafael Moscatel is Managing Director of Compliance and Privacy Partners, a consulting firm specializing in data governance and privacy solutions. He is an award-winning Information Governance Professional (IGP), Certified Records Manager (CRM), Certified Information Privacy Manager (CIPM). Rafael has spent the last twenty years developing large-scale Information Management Programs for the Fortune 500 including Paramount Pictures and Farmers InsuranceReach him at 323-413-7432, follow him on Twitter at @rafael_moscatel or visit http://www.capp-llc.com to learn more.

FTC Grants Final Approval to Settlement with Former Cambridge Analytica CEO, App Developer over Allegations they Deceived Consumers over Collection of Facebook Data

FTC Grants Final Approval to Settlement with Former Cambridge Analytica CEO, App Developer over Allegations they Deceived Consumers over Collection of Facebook Data

The Federal Trade Commission has granted final approval to a settlement with the former CEO of Cambridge Analytica, LLC and an app developer who worked with the company to resolve allegations they used deceptive tactics to collect personal information from tens of millions of Facebook users for voter profiling and targeting.

In its complaint, the FTC alleged that app developer Aleksandr Kogan worked with Cambridge Analytica and its former CEO Alexander Nix to enable Kogan’s GSRApp to collect Facebook data from app users and their Facebook friends. The FTC alleged that app users were falsely told the app would not collect users’ names or other identifiable information. The GSRApp, however, collected users’ Facebook User ID, which connects individuals to their Facebook profiles.

The Commission recently announced an Opinion that found that Cambridge Analytica, which filed for bankruptcy in 2018, engaged in similar conduct in violation of the FTC Act.

As part of the settlement, Kogan and Nix are prohibited from making false or deceptive statements regarding the extent to which they collect, use, share, or sell personal information, as well as the purposes for which they collect, use, share, or sell such information. In addition, they are required to delete or destroy any personal information collected from consumers via the GSRApp and any related work product that originated from the data.

The Commission received one comment on the proposed settlement. The Commission voted 5-0 to finalize the order and to send a response to the commenter.

Rafael Moscatel is Managing Director of Compliance and Privacy Partners, a consulting firm specializing in data governance and privacy solutions. He is an award-winning Information Governance Professional (IGP), Certified Records Manager (CRM), Certified Information Privacy Manager (CIPM). Rafael has spent the last twenty years developing large-scale Information Management Programs for the Fortune 500 including Paramount Pictures and Farmers InsuranceReach him at 323-413-7432, follow him on Twitter at @rafael_moscatel or visit http://www.capp-llc.com to learn more.

FTC Finalizes Settlement with Company that Misled Consumers about how it Accesses and Uses their Email

The Federal Trade Commission finalized a settlement with an email management company that allegedly deceived some consumers about how it accesses and uses their email.

The FTC alleged that Unrollme Inc., which helps users unsubscribe from unwanted emails or consolidate their email subscriptions, falsely told consumers that it would not “touch” their personal emails in order to persuade consumers to provide access to their email accounts.

In fact, Unrollme shared users’ email receipts from completed transactions with Unrollme’s parent company, Slice Technologies, Inc. E-receipts can include, among other things, the user’s name, billing and shipping addresses, and information about products or services purchased by the consumer. Slice uses anonymous purchase information from Unrollme users’ e-receipts in the market research analytics products it sells.

As part of the settlement with the Commission, Unrollme is prohibited from misrepresenting the extent to which it collects, uses, stores, or shares information from consumers. It must also notify those consumers who signed up for Unrollme after viewing one of the allegedly deceptive statements about how it collects and shares information from e-receipts. The order also requires Unrollme to delete, from both its own systems and Slice’s systems, stored e-receipts previously collected from those consumers, unless it obtains their affirmative, express consent to maintain the e-receipts.

After receiving two comments, the Commission voted 4-0-1 to approve the settlement with Unrollme as well as responses to the commenters. Commissioner Rohit Chopra abstained from the vote.

Rafael Moscatel is Managing Director of Compliance and Privacy Partners, a consulting firm specializing in data governance and privacy solutions. He is an award-winning Information Governance Professional (IGP), Certified Records Manager (CRM), Certified Information Privacy Manager (CIPM). Rafael has spent the last twenty years developing large-scale Information Management Programs for the Fortune 500 including Paramount Pictures and Farmers InsuranceReach him at 323-413-7432, follow him on Twitter at @rafael_moscatel or visit http://www.capp-llc.com to learn more.