The FTC settled with NTT Global Data Centers Americas, Inc. for deceiving consumers about its participation in the EU-U.S. Privacy Shield framework. The company's certification lapsed in 2018, but it continued to claim compliance in its privacy policy and marketing materials. Under the settlement, NTT is prohibited from misrepresenting its participation in any privacy program and must apply Privacy Shield protections to previously collected personal data or delete it.
The company is banned from misrepresenting its participation in privacy or data security programs and must either maintain Privacy Shield-level protections for personal data collected during participation or delete or return that data.
In-house legal teams should review vendor, customer, and data processing agreements that involve international data transfers or reference privacy frameworks like Privacy Shield. Focus on clauses where the company represents participation in or compliance with specific privacy or data security programs (e.g., Privacy Shield, EU-U.S. Data Privacy Framework), cross-border data transfer mechanisms (e.g., Standard Contractual Clauses), and data handling obligations (retention, deletion). Changes may be needed to: (1) require parties to verify and maintain accuracy of any certification or participation claims; (2) add notification obligations if a certification lapses; (3) include fallback data protection measures (e.g., deletion or application of equivalent safeguards) if a referenced framework is no longer valid; and (4) ensure marketing materials and privacy policies attached to contracts do not misrepresent participation in any government-sponsored or self-regulatory program.
Entity
NTT Global Data Centers Americas, Inc.
Also known as: NTT Global Data Centers Americas
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/10/ftc-finalizes-settlement-data-center-company-over-allegations-it-deceived-consumers-about-its
1823189d09386ragingwireorder2
https://www.ftc.gov/system/files/documents/cases/1823189d09386ragingwireorder2.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"NTT Global Data Centers Americas, Inc. (NTT), formerly known as RagingWire Data Centers, Inc."
"allegedly deceived consumers about its participation in the EU-U.S. Privacy Shield framework"
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$106.8M
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