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The Federal Trade Commission (FTC) on Monday announced a settlement with privacy seal provider TRUSTe on charges the company “deceived customers about its recertification program for company’s privacy practices, as well as perpetuated its misrepresentation as a nonprofit entity.” FTC Chairwoman Edith Ramirez said, “TRUSTe promised to hold companies accountable for protecting consumer privacy, but it fell short of that pledge … Self-regulation plays an important role in helping to protect consumers. But when companies fail to live up to their promises to consumers, the FTC will not hesitate to take action." In a blog post, TRUSTe CEO Chris Babel wrote, “we take very seriously the role we play in the privacy ecosystem” and that both issues raised by the FTC have been addressed.
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