Privacy & Information Security Law Blog

The Federal Trade Commission published the agenda for the ninth session of its Hearings on Competition and Consumer Protection in the 21st Century (“Hearings Initiative”), a wide-ranging series of public hearings. The ninth session, to take place on December 11-12, 2018, will focus on data security. Lisa Sotto, chair of Hunton Andrews Kurth’s Privacy and Cybersecurity practice, is one of five panel participants discussing “The U.S. Approach to Consumer Data Security.” The panel will be moderated by James Cooper, Deputy Director for Economic Analysis of the FTC’s ...

On November 21, 2018, the Supreme Court of Pennsylvania ruled that a putative class action filed against UPMC (d/b/a The University of Pittsburg Medical Center) should not have been dismissed.

On November 9, 2018, Serbia’s National Assembly enacted a new data protection law. The Personal Data Protection Law, which becomes effective on August 21, 2019, is modeled after the EU General Data Protection Regulation (“GDPR”).

On November 23, 2018, the European Data Protection Board (“EDPB”) published its long-awaited draft guidelines on the extraterritorial application of the EU General Data Protection Regulation (“GDPR”) (the “Guidelines”). To date, there has been a degree of uncertainty for organizations regarding the scope of the GDPR’s application outside of the EU. While the Guidelines provide some clarity on this issue, questions will remain for non-EU controllers and processors. Importantly, these Guidelines are only in draft form and are open for consultation until January 18, 2019, which will give organizations an opportunity to provide comments and raise additional questions in an effort to obtain further clarification from the EDPB on these important scoping questions.

On November 23, 2018, the Belgian Data Protection Authority (the “Belgian DPA”) published a review of its activities since the EU General Data Protection Regulation (“GDPR”) became applicable on May 25, 2018 (the “Review”).

The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP recently submitted formal comments to the U.S. Department of Commerce’s National Telecommunications and Information Administration (“NTIA”) in response to its request for public comments on developing the administration’s approach to consumer privacy.

The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP recently published the first report in its project on Artificial Intelligence (“AI”) and Data Protection: Delivering Sustainable AI Accountability in Practice.

On November 19, 2018, The Register reported that the UK Information Commissioner’s Office (“ICO”) issued a warning to the U.S.-based The Washington Post over its approach to obtaining consent for cookies to access the service.

On November 20, 2018, the Illinois Supreme Court heard arguments in a case that could shape future litigation under the Illinois Biometric Information Privacy Act (“BIPA”). BIPA requires companies to (i) provide prior written notice to individuals that their biometric data will be collected and the purpose for such collection, (ii) obtain a written release from individuals before collecting their biometric data and (iii) develop a publicly available policy that sets forth a retention schedule and guidelines for deletion once the biometric data is no longer used for the purpose for which it was collected (but for no more than three years after collection). BIPA also prohibits companies from selling, leasing or trading biometric data.

On November 14, 2018, the UK government and the EU agreed upon the text of a draft Withdrawal Agreement in relation to the UK’s impending exit from the European Union on March 29, 2019. The draft Withdrawal Agreement provides for a transition period under which the UK will remain subject to a number of its EU membership obligations, during the period starting when the UK leaves the EU on March 29, 2019 to the end of the transition period on December 31, 2020. The draft Withdrawal Agreement provides the following in relation to data protection law:

On November 12, 2018, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP published a legal note on the ePrivacy Regulation and the EU Charter of Fundamental Rights. It was written for CIPL by Dr. Maja Brkan, assistant professor of EU law at Maastricht University, David Dumont, Counsel at Hunton Andrews Kurth, and Dr. Hielke Hijmans, CIPL’s Senior Policy Advisor. 

On November 9, 2018, the European Commission (“the Commission”) submitted comments to the U.S. Department of Commerce’s National Telecommunications and Information Administration (“NTIA”) in response to its request for public comments on developing the administration’s approach to consumer privacy.

On November 8, 2018, Privacy International (“Privacy”), a non-profit organization “dedicated to defending the right to privacy around the world,” filed complaints under the GDPR against consumer marketing data brokers Acxiom and Oracle. In the complaint, Privacy specifically requests the Information Commissioner (1) conduct a “full investigation into the activities of Acxiom and Oracle,” including into whether the companies comply with the rights (i.e., right to access, right to information, etc.) and safeguards (i.e., data protection impact assessments, data protection by design, etc.) in the GDPR; and (2) “in light of the results of that investigation, [take] any necessary further [action]... that will protect individuals from wide-scale and systematic infringements of the GDPR.”

On November 7, 2018, the Data Protection Authority of Bavaria for the Private Sector (the “BayLDA”) issued a press release describing audits completed and pending in Bavaria since the EU General Data Protection Regulation (“GDPR”) took force.

On November 6, 2018, the French Data Protection Authority (the “CNIL”) published its own guidelines on data protection impact assessments (the “Guidelines”) and a list of processing operations that require a data protection impact assessment (“DPIA”). Read the guidelines.

On October 17, 2018, the French data protection authority (the “CNIL”) published a press release detailing the rules applicable to devices that compile aggregated and anonymous statistics from personal data—for example, mobile phone identifiers (i.e., media access control or “MAC” address) —for purposes such as measuring advertising audience in a given space and analyzing flow in shopping malls and other public areas. Read the press release (in French).

On October 30, 2018, ATA Consulting LLC (doing business as Best Medical Transcription) agreed to a $200,000 settlement with the New Jersey Attorney General resulting from a server misconfiguration that allowed private medical records to be posted publicly online. The fine was suspended to $31,000 based on the company’s financial condition. Read the settlement.

On October 23, 2018, the parties in the Yahoo! Inc. (“Yahoo!”) Customer Data Security Breach Litigation pending in the Northern District of California and the parties in the related litigation pending in California state court filed a motion seeking preliminary approval of a settlement related to breaches of the company’s data. These breaches were announced from September 2016 to October 2017 and collectively impacted approximately 3 billion user accounts worldwide. In June 2017, Yahoo! and Verizon Communications Inc. had completed an asset sale transaction, pursuant to which Yahoo! became Altaba Inc. (“Altaba”) and Yahoo!’s previously operating business became Oath Holdings Inc. (“Oath”). Altaba and Oath have each agreed to be responsible for 50 percent of the settlement.

Effective November 2, 2018, a new Ohio breach law will provide covered entities a legal safe harbor for certain data breach-related claims brought in an Ohio court or under Ohio law if, at the time of the breach, the entity maintains and complies with a cybersecurity program that (1) contains administrative, technical and physical safeguards for the protection of personal information, and (2) reasonably conforms to one of the “industry-recognized” cybersecurity frameworks enumerated in the law.

On November 1, 2018, Senator Ron Wyden (D-Ore.) released a draft bill, the Consumer Data Protection Act, that seeks to “empower consumers to control their personal information.” The draft bill imposes heavy penalties on organizations and their executives, and would require senior executives of companies with more than one billion dollars per year of revenue or data on more than 50 million consumers to file annual data reports with the Federal Trade Commission. The draft bill would subject senior company executives to imprisonment for up to 20 years or fines up to $5 million, or both, for certifying false statements on an annual data report. Additionally, like the EU General Data Protection Regulation, the draft bill proposes a maximum fine of 4% of total annual gross revenue for companies that are found to be in violation of Section 5 of the FTC Act.

Effective October 1, 2018, Connecticut law requires organizations that experience a security breach affecting Connecticut residents’ Social Security numbers (“SSNs”) to provide 24 months of credit monitoring to affected individuals. Previously, Connecticut law required entities to provide 12 months of credit monitoring for breaches affecting SSNs.

In 2002, Congress enacted the Supporting Anti-Terrorism by Fostering Effective Technologies Act (“the SAFETY Act”) to limit the liabilities that energy, financial, manufacturing and other critical infrastructure companies face in the event of a serious cyber or physical security attack.