Privacy Seal Provider Settles With FTC

A company that certifies consumer privacy programs that are offered by companies has settled with the Federal Trade Commission, over allegations that it engaged in deceptive business practices. The FTC had alleged that TRUSTe failed to do promised annual certification reviews in more than a thousand cases over a period of several years, and that it failed to update its model language for its clients’ privacy policies. The original model language says that TRUSTe is a non-profit, but its status changed in 2008. Attorneys from Arent Fox take a look at the case, noting that this settlement could heighten consumer concerns about the privacy practices of online businesses, and that it should be an occasion for companies, especially those holding TRUSTe seals, to review their privacy policies to insure compliance with legal requirements and industry best practices.