Privacy & Information Security Law Blog

A recent decision by the United States Court of Appeals for the Ninth Circuit reinforces the importance of obtaining affirmative user consent to website Terms of Use for website owners seeking to enforce those terms against consumers. In Nguyen v. Barnes & Noble Inc., the Ninth Circuit held that Barnes & Noble’s website Terms of Use (“Terms”) were not enforceable against a consumer because the website failed to provide sufficient notice of the Terms, despite having placed conspicuous hyperlinks to the Terms throughout the website.

On September 16, 2014, the Article 29 Working Party (the “Working Party”) adopted a Statement on the impact of the development of big data on the protection of individuals with regard to the processing of their personal data in the EU (“Statement”). This two-page Statement sets forth a number of “key messages” by the Working Party on how big data impacts compliance requirements with EU privacy law, with the principal message being that big data does not impact or change basic EU data protection requirements.

On September 22, 2014, the Article 29 Working Party (the “Working Party”) released an Opinion on the Internet of Things (the “Opinion”) that was adopted during the last plenary session of the Working Party in September 2014. With this Opinion, the Working Party intends to draw attention to the privacy and data protection challenges raised by the Internet of Things and to propose recommendations for the stakeholders to comply with the current EU data protection legal framework.

On September 17, 2014, the Federal Trade Commission announced that the online review site Yelp, Inc., and mobile app developer TinyCo, Inc., have agreed to settle separate charges that they collected personal information from children without parental consent, in violation of the Children’s Online Privacy Protection Rule (the “COPPA Rule”).

On September 18, 2014, the Article 29 Working Party (the “Working Party”) announced its decision to establish a common approach to the right to be forgotten (the “tool-box”). This tool-box will be used by all EU data protection authorities (“DPAs”) to help address complaints from search engine users whose requests to delete their search result links containing their personal data were refused by the search engines. The development of the tool-box follows the Working Party’s June 2014 meeting discussing the consequences of the European Court of Justice’s judgment in Costeja of May 13, 2014.

On September 18, 2014, the French Data Protection Authority (the “CNIL”) announced plans to review 100 French websites on September 18-19, 2014. This review is being carried out in the context of the European “cookies sweep day” initiative, an EU online compliance audit. The Article 29 Working Party organized this joint action, which runs from September 15-19, 2014, to verify whether major EU websites are complying with EU cookie law requirements.

On September 16, 2014, Hunton & Williams’ Global Privacy and Cybersecurity practice group hosted the latest webcast in its Hunton Global Privacy Update series. The program covered a number of privacy and data protection topics, including updates in the EU and Germany, highlights on the UK Information Commissioner’s Office annual report and an APEC update.

On September 2, 2014, the UK Information Commissioner’s Office (“ICO”) published a consultation on the framework criteria for selecting scheme providers for its privacy seal scheme. The consultation gives organizations the opportunity to provide recommendations for the framework criteria that will be used to assess the relevant schemes. The consultation is open until October 3, 2014.

On September 8, Vermont Attorney General William Sorrell announced that SEI/Aaron’s, Inc. has entered into an assurance of discontinuance, which includes $51,000 in total fines, to settle charges over the company’s remote monitoring of its customers’ leased laptops. The settlement stems from charges accusing SEI/Aaron’s, an Atlanta-based franchise of the national rent-to-own retailer Aaron’s, Inc., of unlawfully using surveillance software on its leased laptops to assist the company in the collection of its customers’ overdue rental payments. The Vermont Office of the Attorney General claimed that such remote monitoring of the laptop users’ online activities in connection with debt collection constituted an unfair practice in violation of the Vermont Consumer Protection Act.

Hunton & Williams Insurance Litigation & Counseling partner Lon Berk reports:

An Israeli security firm recently uncovered a hacking operation that had been active for more than a decade. Over that period, hackers breached government servers, banks and corporations in Germany, Switzerland and Austria by using over 800 phony front companies (which all had the same IP address) to deliver unique malware to victims’ systems. The hackers purchased digital security certificates for each phony company to make the sites appear legitimate to visitors. Data reportedly stolen included studies on biological warfare and nuclear physics, plans for key infrastructure, and bank account and credit card data.

On September 10, 2014, the Global Privacy Enforcement Network (“GPEN”) published the results of an enforcement sweep carried out in May of this year to assess mobile app compliance with data protection laws. Twenty-six data protection authorities worldwide evaluated 1,211 mobile apps and found that a large majority of the apps are accessing personal data without providing adequate information to users.

On September 10, 2014, Helen Dixon was announced as the new Data Protection Commissioner for Ireland. Dixon currently is registrar of the Companies Registration Office and has experience in both the private and public sectors, including senior management roles in the Department of Jobs. Dixon will take up her appointment over the coming weeks, succeeding Billy Hawkes in the role. Hawkes has served as Commissioner for two terms since 2005.

The Article 29 Working Party (the “Working Party”) recently released its August 1, 2014 statement providing recommendations on the actions that EU Member States should take in light of the European Court of Justice’s April 8, 2014 ruling invalidating the EU Data Retention Directive (the “Ruling”).

On September 3, 2014, the Federal Communications Commission announced that Verizon has agreed to pay $7.4 million to settle an FCC Enforcement Bureau investigation into Verizon’s use of personal information for marketing. The investigation revealed that Verizon had used customers’ personal information for marketing purposes over a multiyear period before notifying the customers of their right to opt out of such marketing.

On September 2, 2014, a federal district court in California granted final approval to a settlement ending a class action against Bank of America (“BofA”) and FIA Card Services stemming from allegations that the defendants “engaged in a systematic practice of calling or texting consumers’ cell phones through the use of automatic telephone dialing systems and/or an artificial or prerecorded voice without their prior express consent, in violation of the Telephone Consumer Protection Act (“TCPA”).” The court granted preliminary approval to the settlement in December 2013.

On September 4, 2014, the Federal Trade Commission announced a proposed settlement with Google Inc. (“Google”) stemming from allegations that the company unfairly billed consumers for mobile app charges incurred by children. The FTC’s complaint alleges that since 2011, Google violated the FTC Act’s prohibition on unfair commercial practices by billing consumers for in-app charges made by children without the authorization of the account holder.