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Privacy Seal Provider Settles FTC Charges

DATA PROTECTION—U.S.

February 26, 2010

A privacy and security certification program has settled Federal Trade Commission charges that it misled consumers about its Web site monitoring and verification practices. According to an FTC press release, the commission found that ControlScan, a provider of privacy and security seals, issued seals to Web sites with "little or no verification" of the sites' privacy protections, among other misdoings. The settlement bars future misrepresentations and requires that ControlScan notify its seal-bearers of the FTC action. The company's founder and former chief executive officer entered a separate agreement that requires him to give up $102,000 in ill-gotten gains, the report states.
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