FTC Settles With California Company Over Privacy Shield Infraction

The FTC settled with a California online training services company over allegations it falsely claimed it was getting certified as EU-U.S. Privacy Shield compliant, said the agency Monday. The FTC said ReadyTech started a certification application with the Commerce Department in 2016 but didn’t complete “steps necessary to participate.” The company is prohibited from misrepresenting itself again, and for any future violations, faces penalties up to $41,484 for each infraction. “Today’s settlement demonstrates the FTC’s continuing commitment to vigorous enforcement of the Privacy Shield,” said FTC Chairman Joe Simons. “Privacy Shield is a critical tool for ensuring transatlantic data flows and protecting privacy that benefits both companies and consumers.” ReadyTech didn’t comment.