Facts

The Federal Trade Commission filed a complaint against American Apparel Inc. for allegedly violating the FTC Act.

COMPLAINANT'S CONTENTIONS:
The FTC claimed that American Apparel operated the www.americanapparel.net website, which contained privacy policies and statements about its practices, including its participation in the Safe Harbor privacy framework agreed upon by the US and the European Union and the U.S. and Switzerland, which enables U.S. companies to transfer consumer data from the EU to the U.S. in compliance with EU law. The FTC contended that American Apparel violated the FTC Act by failing to renew its self-certification to the Safe Harbor Frameworks, and Commerce. Nevertheless, the FTC contended that the retailer continued to represent that its participation in the Safe Harbor Frameworks was current. The FTC claimed the retailer's deceptive acts violated the FTC Act.

RESPONDENT'S CONTENTIONS:
American Apparel neither admitted nor denied the FTC's allegations.

Result

The parties entered into a consent judgment, in which American Apparel agreed to not misrepresent its participation in any privacy or security program, including, but not limited to the Safe Harbor Frameworks. American Apparel was also required to comply with certain reporting requirements.

Other Information

COMMISSIONERS: Julie Brill, Maureen K. Ohlhausen, Joshua D. Wright, Terrell McSweeny, and FTC Chairwoman Edith Ramirez