This is the second of a two-part look at the new EU-U.S. Privacy Shield Agreement. The first part looked at the general framework of the Privacy Shield and focused on the responsibilities of the private sector in taking advantage of the protections offered by the Privacy Shield, such as self-certification; review by the U.S. Department of Commerce; the principles (transparency, quick attention to consumer inquiries and complaints, free (to consumer) dispute resolution mechanisms); and cooperation with data protection authorities (DPAs). Part II addresses the ­primary government responsibilities in terms of enforcement and the U.S. government’s agreements to limit bulk data collection and provide analysis of the framework.

Enforcement by FTC and DOT

Companies that opt to self-certify are subject to the jurisdiction of the Federal Trade Commission (FTC), the U.S. Department of Transportation (DOT) or other subsequently designated agency. These agencies will be cooperating with DPAs to investigate and resolve complaints raised with the DPAs. The Privacy Shield package contains ­letters from both the FTC and DOT outlining their commitment to enforcing the Privacy Shield. (The FTC’s submission also ­contains an overview of its current cybersecurity enforcement initiatives and guidelines.) Thus, even if a company does not opt to cooperate with DPAs to satisfy the requirements of subparts (a)(i) and (a)(iii), they are still subject to “cooperate” through the investigatory and enforcement powers of either the FTC or DOT. In addition, the FTC has the authority to enforce failure to comply with the self-reporting requirements as an unfair or deceptive trade practice under 15 U.S.C. Section 45(a).

Limitations on Bulk Data Collection and Ombudsman

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