Last week, TRUSTe, Inc. (“TRUSTe”) settled Federal Trade Commission (“FTC”) charges that it misrepresented its certification programs and non-profit status to consumers.  TRUSTe offers clients Certified Privacy Seals, representing to consumers that the website, software, data processing service, or mobile application is compliant with the relevant TRUSTe program.  These programs include specifications related to transparency of company practices, verification of privacy practices, and consumer choice regarding the collection and use of consumer personal information.

The FTC’s complaint alleges that TRUSTe represents that it annually recertifies all companies displaying the Certified Privacy Seal to ensure ongoing compliance with the program requirements, however, from 2006 until January 2013, TRUSTe did not do so in over 1,000 instances.  According to the complaint, prior to its transition to a for-profit entity in July 2008, TRUSTe required its clients’ privacy policies to include a statement that “TRUSTe is an independent, non-profit organization.”  The FTC also alleges that TRUSTe recertified clients who failed to update references to the company’s for-profit status.
Continue Reading FTC Alleges TRUSTe’s Certified Privacy Seals Misled Consumers