US regulator Federal Trade Commission (FTC) has taken to task self-appointed privacy certifier TRUSTe (True Ultimate Standards Everywhere, Inc.) which labels itself as "powering trust and compliance".
In a press release issued this week, the FTC states that TRUSTe has agreed to settle charges that it "deceived consumers about its recertification program for company's privacy practices, as well as perpetuated its misrepresentation as a non-profit entity".
Apart from a $200,000 fine, the proposed extensive settlement requires "TRUSTe will be prohibited from making misrepresentations about its certification process or timeline, as well as being barred from misrepresenting its corporate status or whether an entity participates in its program. In addition, TRUSTe must not provide other companies or entities the means to make misrepresentations about these facts, such as through incorrect or inaccurate model language.".
TRUSTe CEO Chris Babel's comment about the settlement can be found on the TRUSTe blog.
The United Kingdom TRUSTe web site is http://www.truste.co.uk/ which lists many UK clients. Sadly, a Google search indicates many of their clients haven't realised what's been going on and are still promoting the label.
Posted on: 20 November 2014 at 14:15 hrs