FTC Alleges Nevada Data Center Company Made False Privacy Shield Claims

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Fox Rothschild LLPIn a complaint, the Federal Trade Commission alleges that between January 2017 and October 2018, RagingWire Data Centers, Inc. claimed in its online privacy policy that the company participated in the Privacy Shield framework and complied with the program’s requirements, even though it had allowed its certification to lapse in January 2018.

The Department of Commerce warned Raging Wire twice to either remove the claims or take steps to recertify its participation in the Privacy Shield program. The company, however, failed to recertify until it was contacted by the FTC in October 2018.

The FTC also alleges that while RagingWire was a participant of the Privacy Shield program, the company failed to comply with the following requirements:

  • to verify annually that it had made accurate statements about its Privacy Shield privacy practices
  • to maintain a dispute resolution process for consumers who had privacy-related complaints about the company
  • to affirm to the Department of Commerce that they will continue to apply the Privacy Shield protections to personal information collected while participating in the program

Details from the Federal Trade Commission.

[View source.]

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