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NTT Global Data Centers Settles FTC Privacy Pact Allegations

June 30, 2020, 7:25 PM

NTT Global Data Centers Inc. settled Federal Trade Commission allegations that it misled consumers about its participation in a data-sharing pact between the U.S. and the European Union.

The Sacramento, Calif.-based company, which operates data centers in more than 20 countries, must have an outside firm verify its compliance with the Privacy Shield pact as part of the proposed settlement announced Tuesday.

The FTC alleged that RagingWire Data Centers Inc. failed to comply with some pact requirements and let its certification lapse in 2018, the same year NTT assumed 100% ownership of the company.

NTT didn’t immediately respond to a request for comment.

The 2016 Privacy Shield agreement lets companies send data from the EU to the U.S. as long as they apply European-style privacy protections.

NTT in the proposed settlement agreed not to misrepresent its participation in the program and to apply protections to personal information collected, or else return or delete the data.

The FTC in a statement said requiring NTT to have third-party compliance verification goes beyond previous settlements involving the Privacy Shield.

FTC Commissioner Rohit Chopra voted against the no-money, no-fault settlement, saying in a dissent that it should be renegotiated because RagingWire was using the Privacy Shield as a selling point to customers.

To contact the reporter on this story: Andrea Vittorio in Washington at avittorio@bloomberglaw.com

To contact the editors responsible for this story: John Hughes at jhughes@bloombergindustry.com; Keith Perine at kperine@bloomberglaw.com;

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