Cloud Computing: Feds Say Web Privacy Firm Deceived Consumers

Grazed from ABCNews. Author: Brandon Bailey.

Federal regulators said a respected Internet privacy company gave its seal of approval to commercial websites and mobile apps but failed to check whether they were indeed meeting standards for safeguarding customers’ data. The company known as TRUSTe describes itself as a leading independent authority on consumer privacy.

But the Federal Trade Commission said it deceived consumers by not following through on annual reviews of websites and apps that carried its privacy seal. The FTC also said the San Francisco-based company let websites describe TRUSTe as a nonprofit service, even after it became a for-profit business in 2008…

"Seals and certifications are persuasive to consumers," the FTC said in a blog post, after announcing Monday that TRUSTe had agreed to a legal settlement in the case. "So it’s important that representations conveyed by those remarks are truthful."…

Read more from the source @ http://abcnews.go.com/Technology/wireStory/feds-web-privacy-firm-deceived-consumers-26975830