Joel Reidenberg’s article detailing the dubious legality of safe harbors

Also see:
The blog entry on safe harbour: http://essexdataprotection.blogspot.com/2006/03/safe-harbor-studies.html
The report of the European Commission that Joel, I and some colleagues wrote – safe harbors in action: http://ec.europa.eu/information_society/policy/ecomm/doc/library/ext_studies/privacy_trust_policies/final_report_29_02_08.pdf