From EPIC.org:
Officials from the United States and the European Union are meeting in Washington this week to review “Safe Harbor,” a framework that allows the processing of data on EU citizens by US firms without traditional legal protections. Safe Harbor has been challenged by the European Parliament and questioned by academic experts. The Federal Trade Commission recently took action against US firms that incorrectly claimed current Safe Harbor certification, but the only penalty imposed was that the companies may not in the future misrepresent membership in any privacy, security, or other compliance program.