Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Vipvape settles FTC charges it deceived consumers about privacy program participation, (May 5, 2016)

By Michael Menzhuber, J.D., LL.M.

Very Incognito Technologies, Inc., d/b/a Vipvape, has agreed to settle FTC charges that it deceived consumers about its participation in the Asia-Pacific Economic Cooperation (APEC) Cross-Border Privacy Rules (CBPR) system, the agency announced today (In the Matter of Very Incognito Technologies, Inc., File No. 162 3034).

The APEC CBPR system facilitates privacy-respecting data transfers between APEC member economies through a voluntary, enforceable mechanism that certifies companies as being compliant with APEC CBPR requirements. To participate in the APEC CBPR system, companies must undergo a review by an APEC-recognized accountability agent, which certifies that companies meet the standards.

The FTC’s complaint alleges that: (1) Vipvape, a manufacturer of hand-held vaporizers, represented on its website that it was a participant in the APEC CBPR system even though it was not actually certified; and (2) Vipvape’s deceptive statement was a violation of the FTC Act.

Under the terms of the settlement, Vipvape is prohibited from misrepresenting its participation, membership, or certification in any privacy or security program sponsored by a government or self-regulatory or standard-setting organization.

The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning March 4, 2016, and continuing through June 3, 2016, after which the FTC will decide whether to make the proposed consent order final. Interested parties can submit comments electronically.

News: ConsumerProtection Privacy FederalTradeCommissionNews