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Standard Contractual Clauses), and explicitly require data deletion or return if a framework like Privacy Shield is no longer valid.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."
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.