The FTC settled with Ortho-Clinical Diagnostics, Inc. for misleading consumers about its participation in the EU-U.S. Privacy Shield framework. The company allowed its certification to lapse in 2018 but continued to claim participation. The settlement prohibits such misrepresentations and requires compliance with Privacy Shield obligations for data collected or deletion of such data.
Ortho-Clinical is prohibited from misrepresenting its participation in privacy frameworks, must comply with Privacy Shield obligations for data collected while participating, or return or delete such data.
In-house legal teams should review all agreements involving the transfer of personal data from the European Union to the United States, including vendor contracts, customer agreements, and data processing addendums. Focus on clauses that (1) represent compliance with specific data transfer frameworks like the EU-U.S. Privacy Shield, (2) warrant the accuracy of certification or participation status in such frameworks, (3) outline obligations for data protection, audit rights, and (4) specify data retention, deletion, or return requirements upon termination or lapse of certification. Changes may be needed to ensure representations accurately reflect current certification status, incorporate fallback data transfer mechanisms (e.g., Standard Contractual Clauses), and explicitly require data deletion or return if a framework like Privacy Shield is no longer valid.
Entity
Ortho-Clinical Diagnostics, Inc.
Also known as: Ortho-Clinical Diagnostics
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/07/ftc-finalizes-privacy-shield-settlement-ortho-clinical
medical diagnostic device maker settles allegations it misle
https://www.ftc.gov/news-events/news/press-releases/2020/03/medical-diagnostic-device-maker-settles-allegations-it-misled-consumers-about-its-participation-eu
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Ortho-Clinical Diagnostics, Inc."
"The FTC alleged that New Jersey-based Ortho-Clinical Diagnostics, Inc. claimed that it participated in the Privacy Shield framework and complied with the program’s requirements, even though the company had allowed its certification to lapse in 2018."
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$1.9M
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