Privacy & Information Security Law Blog

On November 18, 2021, the European Data Protection Board (“EDPB”) released a statement on the Digital Services Package and Data Strategy (the “Statement”). The Digital Services Package and Data Strategy is a package composed of several legislative proposals, including the Digital Services Act (“DSA”), the Digital Markets Act (“DMA”), the Data Governance Act (“DGA”), the Regulation on a European approach for Artificial Intelligence (“AIR”) and the upcoming Data Act (expected to be presented shortly). The proposals aim to facilitate the further use and sharing of personal data between more public and private parties; support the use of specific technologies, such as Big Data and artificial intelligence (“AI”); and regulate online platforms and gatekeepers.

On November 18, 2021, the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency issued a new rule regarding cyber incident reporting obligations for U.S. banks and service providers.

On November 22, 2021, according to India Today, the Indian Joint Parliamentary Committee (the “JPC”) responsible for reviewing the Personal Information Protection Bill 2019 (“PDPB”) issued its report on the proposed law. The report comes nearly two years after the bill was first referred to the JPC. The JPC’s report will likely be presented with the PDPB 2019 in the Winter Session of Parliament, which begins on November 29, 2021. If passed, the PDPB would constitute the first comprehensive data protection law in India ...

On November 19, 2021, the European Data Protection Board (“EDPB”) published its draft Guidelines 05/2021 (the “Guidelines”) on the interplay between the application of Article 3 of the EU General Data Protection Regulation (“GDPR”), which sets forth the GDPR’s territorial scope, and the GDPR’s provisions on international data transfers. The Guidelines aim to assist organizations subject to the GDPR in identifying whether a data processing activity constitutes an international data transfer under the GDPR, as the GDPR does not define the term.

On November 17, 2021, the Senate Committee on Commerce, Science, and Transportation held its confirmation hearing on FTC Commissioner nominee, Alvaro Bedoya.

On November 14, 2021, the U.S. Department of the Treasury announced a bilateral cybersecurity partnership with the Israeli Ministry of Finance “to protect critical financial infrastructure and emerging technologies” and combat the use of ransomware. The initiative includes the launch of a U.S.-Israeli Task Force on Fintech Innovation and Cybersecurity (the “Task Force”), which seeks to advance the twin goals of encouraging fintech innovation while protecting against cyber threats from nation-state and criminal actors.

On November 5, 2021, the Federal Trade Commission suggested two preventative steps small businesses can take to protect against ransomware risks:

On November 8, 2021, New York Governor Kathy Hochul signed into law A.430/S.2628 (the “Act”), which requires private employers with a place of business in New York State to provide their employees prior written notice, upon hiring, of any electronic monitoring, as defined in the Act, to which the employees will be subjected by the employer.

On November 5, 2021, IAB Europe (“IAB EU”) announced that, in the coming weeks, the Belgian Data Protection Authority plans to share with other data protection authorities a draft ruling on the IAB EU Transparency & Consent Framework (“TCF”). The TCF is a GDPR consent solution built by IAB EU that has become a widely used approach to collecting consent to cookies under the GDPR. The draft ruling is expected to find that the TCF does not comply with the GDPR, in part because IAB EU acts as a controller, and the digital signals the TCF creates to capture individuals’ consent to cookies are personal data under the GDPR. Because IAB EU does not consider itself a controller with respect to the TCF, it does not currently comply with the GDPR’s controller obligations.

On November 10, 2021, the UK Supreme Court issued its long-awaited judgment in the Lloyd v Google case. The decision is expected to make it difficult in practice for a future class action lawsuit that is brought on behalf of a class of individuals who have not actively opted in to being represented by the lead claimant to proceed under UK law.

On November 3, 2021, the Cybersecurity and Infrastructure Security Agency (“CISA”) announced Directive 22-01 - Reducing the Significant Risk of Known Exploited Vulnerabilities (the “Directive”), establishing a CISA-managed catalog of vulnerabilities and compelling federal agencies to remediate such vulnerabilities on government information systems. The Directive targets vulnerabilities that pose a significant risk to the federal government and applies to all software and hardware found on federal information systems, including those managed on an agency’s premises, as well as those hosted by third parties on an agency’s behalf. The Directive is the latest in a series of executive branch efforts to address U.S. cybersecurity in the public and private sectors.

On November 8, 2021, law enforcement agencies in both the United States and European Union announced that a series of actions, including a number of arrests, were taken against the Russia-linked ransomware group, “REvil.” The U.S. Department of Justice (the “DOJ”) unsealed documents relating to an August indictment against two individuals in Dallas for alleged involvement in REvil ransomware attacks against several U.S. businesses. The European authorities, Europol, also announced that police in Romania and South Korea had arrested five people alleged to be REvil affiliates.

Beginning in 2022, Apple and Google will impose new privacy requirements on mobile apps available for download in the Apple App Store and Google Play Store, respectively. As described further below, Apple’s new account deletion requirement will apply to all mobile app submissions to the Apple App Store beginning January 31, 2022. Similarly, Google’s new Data Safety section will launch in February 2022, and app developers will be required to submit to the Google Play Store Data Safety forms and Privacy Policies by April 2022.

On November 2, 2021, Facebook parent Meta Platforms Inc. announced in a blog post that it will shut down its “Face Recognition” system in coming weeks as part of a company-wide move to limit the use of facial recognition in its products. The company cited the need to “weigh the positive use cases for facial recognition against growing societal concerns, especially as regulators have yet to provide clear rules.”

On October 21, 2021, the Consumer Financial Protection Bureau (“CFPB”) issued orders to Google, Apple, Facebook, Amazon, Square and PayPal requesting detailed information about their business practices in relation to payment systems they operate. The CFPB issued the orders pursuant to its statutory authority under the Consumer Financial Protection Act.

On October 28, 2021, the European Parliament’s Committee on Industry, Research and Energy adopted a draft directive on cybersecurity (“NIS2 Directive”). The NIS2 Directive will broaden the scope of the existing NIS Directive to apply to “important sectors,” such as waste management, postal services, chemicals, food, medical device manufacturers, digital providers and producers of electronics, in addition to “essential sectors.” The NIS2 Directive imposes specific cybersecurity requirements relating to incident response, supply chain security, encryption and vulnerability disclosure obligations. The NIS2 Directive also aims to establish better cooperation and information sharing between EU Member States, and create a common European vulnerability database.

On October 27, 2021, the Federal Trade Commission announced significant amendments to the agency’s Safeguards Rule (the “Final Rule”). Promulgated in 2002 pursuant to the Gramm-Leach-Bliley Act, the Safeguards Rule obligates covered financial institutions to develop, implement and maintain a comprehensive information security program that complies with the Rule’s requirements.

On October 28, 2021, the Federal Trade Commission announced the issuance of a new enforcement policy statement warning companies against using dark patterns that trick consumers into subscription services. The policy statement comes in response to rising complaints about deceptive sign-up tactics like unauthorized charges or impossible-to-cancel billing.

On October 29, 2021, the Cyberspace Administration of China (“CAC”) released for public comment “Draft Measures on Security Assessment of Cross-border Data Transfer” (“Draft Measures”). The CAC, in its third legislative attempt to build a cross-border data transfer mechanism in China, issued the Draft Measures three days before the November 1, 2021 effective date of the Personal Information Protection Law (“PIPL”).