VIP Vape abides by the Asia-Pacific Economic Cooperation (APEC) Cross Border Privacy Rules System. The APEC CPBR [sic] system provides a framework for organizations to ensure protection of personal information transferred among participating APEC economies.
The problem, according to the FTC’s allegations, was that VIP Vape is not and has never been certified to participate in the program, even though it never claimed to be so certified.
Under the terms of today’s proposed consent order, VIP Vape is prohibited from future misrepresentations regarding its participation, membership, or certification in any privacy or security self-regulatory program. This action suggests that the FTC will continue to require companies to honor their promises, express or implied, even with respect to nascent data protection frameworks.
Indeed, absent a comprehensive transatlantic data transfer program, it makes sense for the FTC to turn its attention toward the CBPR system. The framework is designed to protect consumer data transfers across the APEC region, which consists of major Pacific Rim economies. The CBPR system is based on the familiar Fair Information Privacy Practices, including preventing harm, notice, collection limitation, use, choice, integrity, security safeguards, access and correction, and accountability. The system is voluntary, and companies seeking to participate must be certified by independent accountability agents. As with the Safe Harbor, certified companies also are listed publicly on the CBPR’s website.
With today’s action, the FTC again reminds companies to check the accuracy of their privacy policies, including implied claims in them.