NTT Global Data Centers settled FTC allegations that it misled consumers about its participation in the EU-U.S. Privacy Shield framework and failed to comply with its requirements. The settlement requires the company to hire a third-party assessor if it re-certifies, prohibits misrepresentations about privacy programs, and mandates continued application of Privacy Shield protections or deletion of data collected while participating.
The company must hire a third-party assessor to verify adherence to Privacy Shield promises if it re-certifies, is prohibited from misrepresenting its participation in privacy programs, and must continue to apply Privacy Shield protections to personal information collected while participating or return or delete such information.
In-house legal teams should review all vendor, customer, and data processing agreements that involve the transfer of personal data from the European Union to the United States. Specifically, scrutinize clauses referencing data transfer mechanisms (like Privacy Shield or its successors), representations regarding participation in or compliance with international privacy frameworks, and obligations that survive the termination or lapse of a certification. Agreements may need amendments to: (1) ensure accurate and non-misleading descriptions of any privacy program participation; (2) incorporate requirements for third-party verification/assessment if the company intends to recertify under a framework like Privacy Shield; and (3) explicitly address the handling or deletion of data collected during a period of prior participation, in line with continuing obligations.
Entity
NTT Global Data Centers, Inc.
Also known as: NTT Global Data Centers
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/06/data-center-company-settles-ftc-privacy-shield-case
d09386nttragingwireorder
https://www.ftc.gov/system/files/documents/cases/d09386nttragingwireorder.pdf
ftc charges nevada company falsely claiming participation eu
https://www.ftc.gov/news-events/press-releases/2019/11/ftc-charges-nevada-company-falsely-claiming-participation-eu-us
d09386chopradissent
https://www.ftc.gov/system/files/documents/public_statements/1577527/d09386chopradissent.pdf
182 3189 majority statement final
https://www.ftc.gov/system/files/documents/public_statements/1577515/182_3189_majority_statement_final.pdf
d09386nttragingwireacco
https://www.ftc.gov/system/files/documents/cases/d09386nttragingwireacco.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"NTT Global Data Centers, Inc., formerly known as RagingWire Data Centers, Inc. (RagingWire)"
"misled consumers about its participation in the EU-U.S. Privacy Shield framework and failed to adhere to the program’s requirements"
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$1.9M
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