FTC Finalizes Privacy Shield Settlement with Ortho-Clinical

WASHINGTON, D.C. — The Federal Trade Commission has finalized a settlement with a medical diagnostic devices and services company over allegations the firm misled consumers about its participation in the EU-U.S. Privacy Shield framework.

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.

The Privacy Shield establishes a process to allow companies to transfer consumer data from European Union countries to the United States in compliance with EU law.

As part of the settlement with the FTC, Ortho-Clinical is prohibited from misrepresenting its participation in the EU-U.S. Privacy Shield framework, as well as any other privacy or data security program sponsored by any government or self-regulatory or standard-setting organization.

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It also is required to comply with the continuing obligation under the Privacy Shield to protect personal information it collected while participating in the program, or to return or delete the information.

After receiving no comments, the FTC voted 4-0-1 to finalize the settlement. Commissioner Rebecca Kelly Slaughter did not participate.

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