The European Commission has issued its report on the second annual review of the functioning of the EU-US Privacy Shield. In it, the EC lauded efforts by the US Department of Commerce to further strengthen certification processes and oversight procedures, detect potential compliance issues, and identify false claims of participation in the framework. The Department of Commerce reported to the EC that it has referred more than 50 cases to the Federal Trade Commission for enforcement action as a result of the new practices and procedures. The EC also applauded what it views as the FTC's “new, more practice approach to compliance monitoring.” The Report encourages continued cooperation between the EU and US to converge their responses to compliance issues and that the US continue to take steps to implement the EC’s recommendations issued following the first annual review. The EC warned that it will take action if the Trump administration does not select a permanent ombudsperson to handle national security-related compliance issues.