Privacy & Information Security Law Blog

On August 16, 2021, the U.S. Securities and Exchange Commission (“SEC”) announced that Pearson plc (“Pearson”), a publicly traded British multinational educational publishing and services company, agreed to pay a $1 million civil penalty in a settlement related to charges that Pearson misled investors about a 2018 data breach resulting in the theft of millions of student records. The SEC’s order found that Pearson made material misstatements and omissions about the data breach in a report furnished to the SEC and in a media statement.

On July 21, 2021, a bipartisan group of Senators introduced the Cyber Incident Notification Act of 2021 (the “Act”). The Act would require federal government agencies, federal contractors and operators of critical infrastructure to notify the federal government in the event of a cybersecurity incident.

On July 20, 2021, the U.S. Department of Homeland Security’s (“DHS’s”) Transportation Security Administration (“TSA”) announced a new Security Directive (the “Second Directive”) requiring owners and operators of certain critical pipelines transporting hazardous liquids and natural gas to implement specific cybersecurity measures. This Second Directive builds on the TSA’s earlier directive of May 27, 2021, on which we previously reported.

On July 29, 2021, U.S. Representative Rep. Kathy Castor (D-Florida), a member of the House Energy and Commerce Committee, reintroduced the Protecting the Information of our Vulnerable Children and Youth Act (the “Bill”). The Bill would update the Children’s Online Privacy Protection Act (“COPPA”) to, among other requirements: (1) cover teens ages 13-17; (2) expand the categories of information considered to be “personal” (to include physical characteristics, biometric information, health information, education information, contents of messages and calls, browsing and search history, geolocation information, and latent audio or visual recordings); (3) prohibit companies from targeting online advertising to children and teens based on their personal information and behavior; (4) require opt-in consent to process personal information collected from all individuals under age 18; (5) strengthen Federal Trade Commission enforcement of COPPA; (6) provide a private right of action to parents of children and teens; and (7) eliminate the FTC’s recognition of self-regulatory COPPA safe harbor programs.

On July 9, 2021, President Biden signed the Executive Order on Promoting Competition in the American Economy (the “Executive Order”). The stated goal of the Executive Order is to increase competition in the United States and resolve issues related to monopolistic behaviors, including with respect to privacy and data protection.

On July 13, 2021, federal bank regulators – the Board of Governors of the Federal Reserve System (the “Board”), the Federal Deposit Insurance Corporation (“FDIC”) and the Office of the Comptroller of the Currency (“OCC”) (collectively, the “Regulators”) – requested public comment on proposed joint guidance regarding banking organizations’ management of risks related to relationships with third-party support and service providers (the “Proposed Guidance”). Each of the Regulators previously issued guidance on the subject for their respective supervised banking organizations. The Proposed Guidance seeks to promote consistency in banking organizations’ third-party risk management, replacing agency-specific guidance with a framework that applies to all banking organizations supervised by the Regulators. According to the Regulators, the Proposed Guidance largely would adopt the text of the OCC’s 2013 guidance, broadening its scope to include organizations supervised by all three Regulators.

On July 12, 2021, Chris Inglis was formally sworn in as the first White House National Cyber Director. The newly established position, as well as the Office of the National Cyber Director, was created as part of the 2021 National Defense Authorization Act. Inglis, who previously served as the National Security Agency Deputy Director, was unanimously confirmed to the position by the Senate on June 17, 2021.

Read more on the Office of the National Cyber Director.

On July 1, 2021, the Federal Trade Commission settled a complaint brought under the Children’s Online Privacy Protection Act (“COPPA”) against Toronto-based Kuuhuub Inc. and its Finnish subsidiaries Kuu Hubb Oy and Recolor Oy, operators of the online coloring book app, Recolor. The FTC alleged that the app operators violated the COPPA Rule by collecting and disclosing personal information from child users of the app without first notifying their parents or obtaining verifiable parental consent.

On June 25, 2021, the U.S. Supreme Court in TransUnion LLC v. Ramirez held in a 5-4 decision that certain members of a class action lawsuit, whose inaccurate credit reports were not provided to third parties, did not suffer a “concrete” injury sufficient to confer Article III standing. This case builds upon the Court’s 2016 decision in Spokeo, Inc. v. Robins, where the Court first addressed the concrete injury that must be suffered in order to have standing to bring suit under the Fair Credit Reporting Act (“FCRA”). Importantly, while Spokeo’s holding that a bare ...

On June 17, 2021, Senator Kirsten Gillibrand (D-NY) announced the reintroduction of the Data Protection Act of 2021 (the “bill”), which would create an independent federal agency, the Data Protection Agency, to “regulate high-risk data practices and the collection, processing, and sharing of personal data.” The bill was first introduced in 2020 and has since been revised to include updated provisions intended to protect against privacy harms, oversee the use of “high-risk data practices” and examine the social, ethical, and economic impacts of data collection.

On June 15, 2021, the SEC announced it settled charges against real estate services company First American Financial Corporation (“First American”) for alleged violation of Rule 13a-15(a) of the Exchange Act. The SEC charged First American with failure to maintain disclosure controls and procedures designed to ensure that all available, relevant information concerning a software vulnerability that led to a cybersecurity incident was filed with the Commission.

As reported on the Hunton Retail Law Resource blog, this week, the Federal Trade Commission voted 3 to 1 to accept a settlement agreement with MoviePass, Inc., its parent company, and two of the now-defunct company’s former employees, after allegations of failure to take reasonable measures to secure consumers’ data and deceptive trade practices. The Commission brought an enforcement action against MoviePass pursuant to the FTC Act and the Restore Online Shoppers’ Confidence Act (“ROSCA”), the latter of which requires disclosure of all material terms, a consumer’s informed consent, and a simple mechanism to stop recurring charges when marketing negative option services.

On June 3, 2021, the U.S. Supreme Court in Van Buren v. United States reversed the U.S. Court of Appeals for the Eleventh Circuit’s decision to uphold the conviction of Nathan Van Buren, a former Georgia police sergeant alleged to have violated the Computer Fraud and Abuse Act of 1986 (“CFAA”) when accessing a law enforcement database for a non-law-enforcement purpose against his department’s policy. Van Buren, the target of an FBI sting operation, had accessed the database to look up license plate information in exchange for money. The Court addressed a split in authority among the circuits regarding the scope of liability under the CFAA.

On May 27, 2021, the U.S. Department of Homeland Security’s (“DHS”) Transportation Security Administration (“TSA”) announced a Security Directive (the “Directive”) that will impose new cybersecurity requirements on critical pipeline owners and operators.

On May 25, 2021, the Office for Civil Rights (“OCR”) of the U.S. Department of Health and Human Services (“HHS”) announced that it had reached a settlement with Peachstate Health Management, LLC (“Peachstate”) for violations of the HIPAA Security Rule. As part of this settlement, Peachstate (dba AEON Clinical Laboratories) agreed to pay OCR $25,000 and to implement a robust corrective action plan.

On May 20, 2021, the U.S. Department of the Treasury announced a proposal that would require any cryptocurrency transaction of $10,000 or more to be reported to the Internal Review Service (“IRS”). As a supplement to President Biden’s American Families Plan, which focuses on investments in American children and families, the Treasury detailed the cryptocurrency reporting requirement and other tax compliance initiatives in a new report titled The American Families Plan Tax Compliance Agenda (the “Report”).

On May 12, 2021, President Biden signed an Executive Order on Improving the Nation’s Cybersecurity. The Order outlines a number of initiatives intended to improve cybersecurity in the U.S. and protect federal government networks, including:

On May 11, 2021, Senators Edward Markey (D-MA) and Bill Cassidy (R-LA) introduced the Children and Teens’ Online Privacy Protection Act (the “Bill”). The Bill, which would amend the existing Children’s Online Privacy Protection Act (“COPPA”), would prohibit companies from collecting personal information from children ages 13 to 15 without their consent.

On April 27, 2021, the Portuguese Data Protection Authority (Comissão Nacional de Proteção de Dados, the “CNPD”) ordered the National Institute of Statistics (the “INE”) to suspend, within 12 hours, any international transfers of personal data to the U.S. or other third countries that have not been recognized as providing an adequate level of data protection.

Building upon its April 2020 business guidance on Artificial Intelligence and algorithms, on April 19, 2021, the FTC published new guidance focused on how businesses can promote truth, fairness and equity in their use of AI.

As reported on the Hunton Retail Law Blog, on April 22, 2021, the U.S. Supreme Court unanimously held in a highly-anticipated case, AMG Capital Management, LLC v. FTC, that the FTC cannot seek or obtain equitable monetary relief pursuant to §13(b) of the FTC Act.

On April 13, 2021, the U.S. Department of Justice (“DOJ”) announced that the Federal Bureau of Investigation (“FBI”) executed a court-authorized removal of malicious web shells from hundreds of vulnerable computers in the U.S.

On April 12, 2021, the Biden administration announced it intends to nominate Chris Inglis, a former Deputy Director of the National Security Agency, to be the first U.S. National Cyber Director (“NCD”), subject to Senate confirmation. The newly established NCD position, which will serve as the President’s principal cybersecurity policy and strategy advisor, and the Office of the National Cyber Director (the “ONCD”) were created under the National Defense Authorization Act for Fiscal Year 2021 (the “NDAA”), which became law on January 1, 2021.

On April 1, 2021, the Supreme Court issued its long-awaited opinion in Facebook, Inc. v. Duguid et al., No. 19-511 (Apr. 1, 2021).  At issue in Facebook, was the question of what technology constitutes an “automatic telephone dialing system” (“ATDS”) within the meaning of the Telephone Consumer Protection Act, 47 U.S.C. §227 et seq (“TCPA”). The Supreme Court’s unanimous decision is a huge win for companies who communicate with their consumers by telephone/text message.

The U.S. Department of Health and Human Services (“HHS”) Office for Civil Rights (“OCR”) recently announced more settlements associated with its HIPAA Right of Access Initiative. The settlements with Village Plastic Surgery ("VPS") and The Arbour, Inc. (“Arbour”) resulted in combined civil monetary penalties of $95,000.

On January 21, 2021, President Biden designated Rebecca Kelly Slaughter as Acting Chair of the Federal Trade Commission.

The United States Court of Appeals for the Fifth Circuit recently vacated a $4.3 million civil monetary penalty imposed by the Department of Health and Human Services’ Office for Civil Rights (“OCR”) in 2017 against the University of Texas M.D. Anderson Cancer Center (“MD Anderson”). The Court held that OCR’s civil monetary penalty for alleged violations of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Privacy Rule and HIPAA Security Rule was “arbitrary, capricious, and otherwise unlawful.”

On January 13, 2021, the FTC announced that fertility-app developer Flo Health, Inc. (“Flo”) agreed to a settlement over allegations that the company shared app users’ health information with third-party data analytics providers despite representations that Flo would keep such information private.

On January 12, 2021, in Wengui v. Clark Hill, PLC, et al., the United States District Court for the District of Columbia rejected a law firm defendant’s assertions of the attorney-client privilege and work product doctrine for forensic reporting and other related information associated with its outside counsel’s data breach investigation.

As reported on the Hunton Retail Law Resource blog, the Federal Trade Commission settled charges with mobile advertising company Tapjoy, Inc., on allegations that the company failed to provide promised rewards in exchange for completed activities such as the payment of money, disclosure of sometimes-sensitive personal information or registration for “free trial” marketing offers.

On January 11, 2021, the FTC announced that Everalbum, Inc. (“Everalbum”), developer of the “Ever” photo storage app, agreed to a settlement over allegations that the company deceived consumers about its use of facial recognition technology and its retention of the uploaded photos and videos of users who deactivated their accounts.

The Federal Trade Commission issued a call for presentations on consumer privacy and data security research for its sixth annual PrivacyCon, which is to be held on July 27, 2021. The call for presentations asks for empirical research and demonstrations, including economic analyses, with implications for privacy and data security policy and law.

The global privacy and cybersecurity team at Hunton Andrews Kurth has authored multiple chapters of the 2021 Data Protection & Privacy guide by Lexology’s Getting the Deal Through. Partner Aaron P. Simpson and practice chair Lisa J. Sotto served as contributing editors of the ninth edition of the annual guide, which provides summary and analysis in key areas of law, practice and regulation for 150 jurisdictions across the globe.

On December 15, 2020, the Federal Trade Commission announced a proposed settlement with Ascension Data & Analytics, LLC, a Texas-based mortgage industry data analytics company (“Ascension”), to resolve allegations that the company failed to ensure one of its vendors was adequately securing personal information of mortgage holders.

On December 18, 2020, federal financial regulatory agencies, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (collectively, the “Agencies”) announced a proposed rule (the “Proposed Rule”) that would require “banking organizations” to notify their primary federal regulator within 36 hours following any “computer-security incident” that rises to the level of a “notification incident.” The Proposed Rule also would require service providers to notify at least two individuals at the banking organizations they service immediately after experiencing a computer-security incident that materially disrupts, degrades or impairs the services they provide.

On December 9, 2020, the Senate Committee on Commerce, Science and Transportation held a hearing on the Invalidation of the EU-U.S. Privacy Shield and the Future of Transatlantic Data Flows. The hearing explored the policy issues that led to the Court of Justice of the European Union’s (“CJEU”) invalidation of the Privacy Shield framework in the Schrems II ruling. The hearing also discussed effects of the CJEU’s decision on U.S. businesses and what steps the U.S. government may take to develop a successor data transfer framework, including comprehensive federal privacy legislation.

On December 14, 2020, the Federal Trade Commission announced that it had issued orders to nine social media and video streaming companies, requesting information on how the companies collect, use and present personal information, their advertising and user engagement practices and how their practices affect children and teens. The orders will assist the FTC in conducting a study of these policies, practices and procedures. The FTC issued the orders pursuant to Section 6(b) of the FTC Act, which allows the agency to undertake broad studies separate from its law enforcement activities.

On November 27, 2020, New Mexico Attorney General Hector Balderas filed a notice of appeal to the U.S. Court of Appeals for the Tenth Circuit in the lawsuit it brought against Google on February 20, 2020, regarding alleged violations of the federal Children’s Online Privacy Protection Act (“COPPA”) in connection with G-Suite for Education (“GSFE”). As we previously reported, the U.S. District Court of New Mexico had granted Google’s motion to dismiss, in which it asserted that its terms governed the collection of data through GSFE and that it had complied with COPPA by using schools both as “intermediaries” and as the parent’s agent for parental notice and consent, in line with Federal Trade Commission Guidance.

On November 17, 2020, the Senate passed by unanimous consent H.R. 1668, the Internet of Things (“IoT”) Cybersecurity Improvement Act (the “IoT Bill”). The House previously passed the IoT Bill in September after negotiations with the Senate to resolve differences in their respective bills. The IoT Bill now heads to the President’s desk for signature.

On November 9, 2020, the Federal Trade Commission announced it had entered into an consent agreement (the “Proposed Settlement”) with Zoom Video Communications, Inc. (“Zoom”) to settle allegations that the video conferencing provider engaged in a series of unfair and deceptive practices that undermined the security of its user base, which, according to the FTC, has grown from 10 million users in December 2019 to 300 million in April 2020 during the COVID-19 pandemic.

On November 2, 2020, the comment period for the Federal Acquisition Security Council’s (“FASC”) interim final rule (the “Interim Final Rule”) implementing the Federal Acquisition Supply Chain Security Act of 2018 (the “2018 Act”) will close.

On October 22, 2020, the Consumer Financial Protection Bureau (“CFPB”) issued a notice of proposed rulemaking (the “Proposed Rule”) to implement Section 1033 of the Dodd-Frank Act (the “Act”) regarding consumers’ access to their financial information.

The Centre for Information Policy Leadership at Hunton Andrews Kurth (“CIPL”) recently published a concept paper titled Why We Need Interstate Privacy Rules for the U.S.

The paper acknowledges the possibility that the U.S. may not implement a comprehensive federal privacy law in the near future, and that instead a growing patchwork of state laws will emerge. It proposes an interstate privacy interoperability code of conduct or certification as a solution to the possibility of inconsistent and disparate privacy requirements across the U.S. The paper outlines the benefits and key features of the code, as well as potential models and sources for its structure and substantive rules, such as the Asia-Pacific Economic Cooperation Cross-Border Privacy Rules (“APEC CBPR”), ISO standards, existing state privacy laws, the EU General Data Protection Regulation (“GDPR”) and key federal privacy proposals. It also discusses the process that could be used to develop the code.

On September 28, 2020, the U.S. Department of Commerce, along with the U.S. Department of Justice and the Office of the Director of National Intelligence, released a White Paper entitled Information on U.S. Privacy Safeguards Relevant to SCCs and Other EU Legal Bases for EU-U.S. Data Transfers after Schrems II (the “White Paper”). The White Paper outlines privacy safeguards in and updates to the U.S. surveillance provisions flagged by the Court of Justice of the European Union (“CJEU”) in its Schrems II decision. It is intended to serve as a resource for companies transferring personal data from the EU to the U.S. in the wake of the CJEU’s decision overturning the EU-U.S. Privacy Shield. Particularly, it focuses on companies relying on Standard Contractual Clauses (“SCCs”) for data transfers, and provides information to help them determine whether the U.S. ensures adequate privacy protections for companies’ data.

In an op-ed recently published by The Richmond Times-Dispatch, former Governor of Virginia and Global Strategy Advisor of the Centre for Information Policy Leadership at Hunton Andrews Kurth Terry McAuliffe discusses why a U.S. federal privacy law is essential to economic recovery in the wake of the COVID-19 pandemic. McAuliffe highlights how the U.S., unlike other countries, lacks a comprehensive privacy law.

On September 17, 2020, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, along with Senators John Thune (SD), Deb Fischer (NE) and Marsha Blackburn (TN) introduced the Setting an American Framework to Ensure Data Access, Transparency, and Accountability (SAFE DATA) Act (“the Bill”). The Bill marks an official introduction of an update of Senator Wicker’s draft United States Consumer Data Privacy Act of 2019, which was circulated last November.

On September 18, 2020, the U.S. Department of Commerce (“Commerce”) announced detailed sanctions relating to the mobile applications WeChat and TikTok. These prohibitions were issued in accordance with President Trump’s Executive Orders issued on August 6, 2020, imposing economic sanctions against the platforms under the International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.) and the National Emergencies Act (50 U.S.C. § 1601 et seq.). These orders, if they become fully effective, will (1) prohibit mobile app stores in the U.S. from permitting downloads or updates to the WeChat and TikTok mobile apps; (2) prohibit U.S. companies from providing Internet backbone services that enable the WeChat and TikTok mobile apps; and (3) prohibit U.S. companies from providing services through the WeChat mobile app for the purpose of transferring funds or processing payments to or from parties. The sanctions do not target individual or business use of the applications but are expected to degrade the ability of persons in the United States to use the apps for the purposes they were designed to serve.

On September 15, 2020, the U.S. Department of Health and Human Services’ (“HHS”) Office for Civil Rights (“OCR”) announced five more settlements under its HIPAA Right of Access Initiative. The OCR announced its Right of Access Initiative in 2019, promising vigorous enforcement of HIPAA’s access rules. The five newly announced settlements bring OCR's total to seven completed enforcement actions under the Right of Access Initiative.

On August 25, 2020, Hunton’s Centre for Information Policy Leadership (“CIPL”) released a new paper entitled “Data Protection in the New Decade: Lessons from COVID-19 for a US Privacy Framework.” The paper examines how the COVID-19 pandemic has emphasized the need for a U.S. federal privacy law.

On August 6, 2020, President Trump signed executive orders imposing new economic sanctions under the International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.) and the National Emergencies Act (50 U.S.C. § 1601 et seq.) against TikTok, a video-sharing mobile application, and WeChat, a messaging, social media and mobile payments application. The orders potentially affect tens of millions of U.S. users of these applications and billions of users worldwide.

On August 4, 2020, Senators Jeff Merkley (OR) and Bernie Sanders (VT) introduced the National Biometric Information Privacy Act of 2020 (the “bill”). The bill would require companies to obtain individuals’ consent before collecting biometric data. Specifically, the bill would prohibit private companies from collecting biometric data—including eye scans, voiceprints, faceprints and fingerprints—without individuals’ written consent, and from profiting off of biometric data. The bill provides individuals and state attorneys general the ability to institute legal proceedings against entities for alleged violations of the act.

On July 27, 2020, the Enforcement Bureau of the Federal Communications Commission (the “FCC”) designated the Industry Traceback Group (“ITG”) as the FCC’s official consortium for coordinating efforts to trace illegal robocalls. The ITG is a collaboration of wireline, wireless, VoIP and cable industry companies, led by USTelecom, with the mission of tracing and identifying the source of illegal robocalls. According to the ITG, it conducted more than 1,000 trace-back operations in 2019 and unmasked the source of more than 10 million robocalls.

On June 30, 2020, the Federal Trade Commission (“FTC”) announced it had entered into a consent agreement (the “Proposed Settlement”) with NTT Global Data Centers Americas, Inc. (“NTT”), a successor in interest to RagingWire Data Centers, Inc. (“RagingWire”), to settle allegations in a November 2019 Administrative Complaint that RagingWire misrepresented its participation in and compliance with the EU-U.S. Privacy Shield Framework (“Privacy Shield”), in violation of the FTC Act.

On June 24, 2020, the Washington State Attorney General (“Washington AG”) announced that it had settled an enforcement action against the owners of the “We Heart It” social media platform for alleged violations of the Children’s Online Privacy Protection Act (“COPPA”) and the Washington State Consumer Protection Act. Under the consent decree, the defendants must pay $100,000, with an additional $400,000 suspended contingent upon compliance with the consent decree.

On June 18, 2020, Senator Sherrod Brown (OH) released a discussion draft of a privacy bill entitled the Data Accountability and Transparency Act of 2020 (“the Bill”). The Bill would provide individuals with several new rights regarding their personal data; implement rules limiting how personal data is collected, used or shared; and establish a new federal agency called the Data Accountability and Transparency Agency to protect individuals’ privacy and enforce those rules.

On June 9, 2020, the Federal Communications Commission (“FCC”) announced a proposed $225 million fine, the largest in the history of the FCC, against several individuals for telemarketing violations.

On June 1, 2020, U.S. Senators Maria Cantwell (WA) and Bill Cassidy (LA) introduced the Exposure Notification Privacy Act (the “Act”), bipartisan legislation that would impose requirements and restrictions on operators of automated exposure notification services. The bill defines automated exposure notification service as “a website, online service, online application, mobile application, or mobile operating system that is offered in commerce in the U.S. and that is designed, in part or in full, specifically to be used for, or marketed for, the purpose of digitally notifying, in an automated manner, an individual who may have become exposed to an infectious disease (or the device of such individual, or a person or entity that reviews such disclosures).” These services are commonly referred to as “contact tracing technology” because they are designed to provide alerts when a user comes in near-contact with someone who tested positive for an infectious disease, such as COVID-19.

The Federal Trade Commission (“FTC”) announced its latest Children’s Online Privacy Protection Act (“COPPA”) settlement with California-based app developer HyperBeard and its individual principals. According to the FTC, since at least 2016, HyperBeard has offered a number of child-directed mobile apps, with names like BunnyBuns, KleptoCats and NomNoms that featured brightly colored, animated characters, such as cats, dogs, bunnies, chicks, monkeys and other cartoon characters, and that are described in child-friendly terms like “super cute” and “silly.” These apps are free to download and play, but they generate revenue through in-app advertising and purchases. The FTC alleges that the defendants were aware that children were using their apps, and that they promoted them to child audiences on a kids’ entertainment website, through children’s books and through the merchandizing of officially licensed plush stuffed animals and toys. Defendants allowed third-party ad networks to collect persistent identifiers from children in order to serve them with interest-based ads without parental notice or consent, in violation of COPPA.

On May 19, 2020, the Federal Trade Commission (“FTC”) announced that it reached an agreement with Swiss digital game developer Miniclip, S.A. (“Miniclip”) to settle allegations that Miniclip misled consumers about its membership in a COPPA safe harbor program.

On May 14, 2020 Democrats in both the House and Senate introduced the Public Health Emergency Privacy Act (“the Act”). In the House, the Act was sponsored by Representatives Jan Schakowsky (IL), Anna Eshoo (CA) and Suzan DelBene (WA), and in the Senate was sponsored by Senators Richard Blumenthal (CT) and Mark Warner (VA). Similar to the recently-introduced COVID-19 Consumer Data Protection Act of 2020, the Act would put temporary rules in place regarding the collection, use and disclosure of emergency health data used to combat the spread of the coronavirus. The rules imposed by the Act would only apply during the course of the Public Health Emergency as declared by the Secretary of Health and Human Services (“HHS”) and would only apply to specific uses of certain personal data.

In a “Ten Years Hence” speaker series hosted by the University of Notre Dame, Lisa Sotto, Chair of Hunton Andrews Kurth’s global Privacy and Cybersecurity practice, highlights why privacy and cybersecurity will remain relevant issues now and for decades to come in a lecture on Privacy and Cybersecurity: The New Frontier.

On May 1, 2020, the White House issued an executive order on securing the United States bulk-power system (the “Order”), finding that foreign adversaries are creating and exploiting vulnerabilities in the U.S. bulk-power system (“BPS") and determining that unrestricted foreign supply of BPS equipment constitutes an “unusual and extraordinary threat” to national security. The Order imposes restrictions on certain transactions involving BPS equipment in which foreign adversaries of the United States have an interest.

As part of its regulatory review of the Gramm-Leach-Bliley Act (“GLB”) Safeguards Rule, the Federal Trade Commission will hold a workshop, Information Security and Financial Institutions: An FTC Workshop to Examine the Safeguards Rule. The workshop, originally scheduled for May, has been postponed until July 13, 2020.

On April 30, 2020, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, along with Senators John Thune (SD), Jerry Moran (KS) and Marsha Blackburn (TN), announced plans to introduce the COVID-19 Consumer Data Protection Act of 2020 (“the bill”), which would put temporary rules in place regarding the collection, processing and transfer of data used to combat the spread of the coronavirus. The bill would only apply during the course of the COVID-19 Public Health Emergency as declared by the Secretary of Health and Human Services, and would only apply to specific uses of certain personal data.

On April 9, 2020 the U.S. Senate Committee on Commerce, Science and Transportation held a “paper hearing” entitled Enlisting Big Data in the Fight Against Coronavirus. A “paper hearing” consists of the committee members submitting opening statements and witnesses submitting testimony, which were posted on the Committee’s website. Witnesses were required to submit answers to member questions last week.

On March 26, 2020, Washington D.C. enacted bill number B23-0215, amending D.C.’s data breach notification law (the “Bill”). Among other requirements, the Bill requires the provision of identity theft prevention services in certain data breaches, establishes a new regulatory reporting requirement in the event of a cognizable data breach affecting 50 or more residents of D.C., and imposes certain data security requirements on covered businesses.

On March 12, 2020, Senator Jerry Moran (KS) introduced a comprehensive federal privacy bill entitled the Consumer Data Privacy and Security Act of 2020 (the “Act”).

Hunton’s Centre for Information Policy Leadership (“CIPL”) reports on the top privacy-related priorities for this year:

1.  Global Convergence and Interoperability between Privacy Regimes

Around the world, new privacy laws are coming into force and outdated laws continue to be updated: the EU General Data Protection Regulation (“GDPR”), Brazil’s Lei Geral de Proteção de Dados Pessoais (“LGPD”), Thailand’s Personal Data Protection Act, India’s and Indonesia’s proposed bills, California’s Consumer Privacy Act (“CCPA”), and the various efforts in the rest of the United States at the federal and state levels. This proliferation of privacy laws is bound to continue.

The District Court for the District of Columbia recently invalidated certain Department of Health and Human Services (“HHS”) rules regarding an individual’s access to their protected health information (“PHI”). The Court held that: (1) individuals can only direct their electronic PHI to third parties (and not hard copy PHI); and (2) the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Omnibus Rule provisions regarding the caps on fees that HIPAA-covered entities may charge for such requests did not follow relevant administrative law procedures.

The meaning of an “automatic telephone dialing system” (“ATDS”) as defined by the Telephone Consumer Protection Act (“TCPA”) has been hotly contested since the D.C. Circuit invalidated the prior Federal Communications Commission (“FCC”) rulings interpreting the TCPA in 2018. The Ninth Circuit has held that merely calling numbers from a stored list is sufficient to meet the definition of an ATDS, while the Third Circuit has at least indicated that the ability to generate numbers randomly or sequentially is the defining characteristic.

On February 12, 2020, Senator Kirsten Gillibrand announced a plan to create a Data Protection Agency through her proposed legislation, the Data Protection Act of 2020. According to Senator Gillibrand, the purpose of the law is to create the new agency and bring the protection of privacy and freedom into the digital age.

On January 16, 2020, the Federal Trade Commission announced that settlements with five companies of separate allegations that they had falsely claimed certification under the EU-U.S. Privacy Shield framework had been finalized.

As reported on our Hunton Retail Law Resource blog, on January 7, 2020, the Federal Trade Commission announced a settlement with Mortgage Solutions FCS, Inc., d/b/a Mount Diablo Lending, and its sole principal, Ramon Walker, to resolve allegations that the lender violated the FTC Act, the Fair Credit Reporting Act (“FCRA”) and the Gramm-Leach-Bliley (“GLB”) Act, by improperly disseminating consumers’ personal information on Yelp in response to consumers’ negative reviews posted to that site.

On January 6, 2020, the Federal Trade Commission announced that it granted final approval to a settlement with InfoTrax Systems, L.C. and its former CEO, Mark Rawlins, related to allegations that InfoTrax failed to implement reasonable, low-cost and readily available security safeguards to protect the personal information the company maintained on behalf of its business clients.

On December 12, 2019, the U.S. Department of Health and Human Services’ (“HHS”) Office for Civil Rights (“OCR”) announced its second enforcement action and settlement under its HIPAA Right of Access Initiative. Under the terms of the settlement, Korunda Medical, LLC, agreed to pay $85,000 to settle a potential violation of HIPAA’s right of access.

The U.S. Department of Education and the U.S. Department of Health and Human Services released joint guidance on the application of the Family Educational Rights and Privacy Act (“FERPA”) and the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Privacy Rule to student records. This is the first update to the agencies’ guidance since it was issued in 2008. The 27-page document includes FAQs clarifying for schools, health care professionals and families how FERPA and HIPAA apply to student education and health records. The FAQs answer which rule ...

On December 18, 2019, the House Energy and Commerce Committee released a bipartisan staff-level draft privacy bill (“the bill”). While comprehensive in scope, much of the key language in the bill was left in brackets, meaning the two sides have not yet reached a compromise on final language.

On December 9, 2019, the Federal Communications Commission (“FCC”) announced that online fax services do not fall under legal prohibitions against junk faxes. In a petition filed in 2017 for declaratory judgement brought by AmeriFactors Financial Group, LLC pursuant to the Telephone Consumer Protection Act (“TCPA”) and the Junk Fax Protection Act  (“JFPA”), the petitioner sought clarification regarding the status of online cloud-based fax services.

On December 6, 2019, the Federal Trade Commission announced its Final Order and Opinion in the matter of Cambridge Analytica, LLC, finding that Cambridge Analytica violated the FTC Act’s Section 5 prohibition against “unfair or deceptive acts or practices” when harvesting personal information through its “GSRApp” Facebook application.

On December 3, 2019, the Federal Trade Commission announced that it had reached settlements in four separate Privacy Shield cases. Specifically, the FTC alleged that Click Labs, Inc., Incentive Services, Inc., Global Data Vault, LLC, and TDARX, Inc. each falsely claimed to participate in the EU-U.S. Privacy Shield framework. The FTC also alleged that Click Labs and Incentive Services falsely claimed to participate in the Swiss-U.S. Privacy Shield framework and that Global Data and TDARX continued to claim participation in the EU-U.S. Privacy Shield after their Privacy Shield certifications lapsed. The complaints further alleged that Global Data and TDARX failed to comply with the Privacy Shield framework, including by failing to (1) verify annually that statements about their Privacy Shield practices were accurate, and (2) affirm that they would continue to apply Privacy Shield protections to personal information collected while participating in the program.

On November 29, 2019, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, circulated a draft of a comprehensive federal privacy bill entitled the United States Consumer Data Privacy Act of 2019 (“the Bill”).

On November 26, 2019, Senate Commerce Committee Ranking Member Maria Cantwell (WA), alongside Senators Brian Schatz (HI), Amy Klobuchar (MN) and Ed Markey (MA), unveiled a new comprehensive federal privacy bill entitled the Consumer Online Privacy Rights Act (“COPRA”).

The bill would create a new bureau within the Federal Trade Commission  focusing on privacy and data security to enforce the law and promulgate new rules and regulations in the space. It also would provide enforcement authority for state attorneys general as well as a private right of action. It would preempt only state laws that “directly conflict with the provisions of the Act,” and specifically notes that state laws that afford a “greater level of protection to individuals” would not be considered in direct conflict.

On November 18, 2019, the ranking members from four Senate Committees (Senator Maria Cantwell (WA) from Commerce, Senator Dianne Feinstein (CA) from Judiciary, Senator Sherrod Brown (OH), and Senator Patty Murray (WA) from Health, Education, Labor and Pensions) released a set of “core principles” for federal privacy legislation.

On November 19, 2019, the Federal Trade Commission announced that Medable, Inc. (“Medable”) agreed to settle allegations that the company had misrepresented its participation in the EU-U.S. Privacy Shield program. The FTC alleged that, from December 2017 to October 2018, Medable falsely claimed in its online privacy policy that it was a certified participant in the EU-U.S. Privacy Shield framework and adhered to the framework’s principles. According to the complaint, although Medable did initiate an application with the Department of Commerce in December 2017, the company never completed the steps necessary to participate in the framework.

On November 7, 2019, the Office for Civil Rights (“OCR”) of the U.S. Department of Health and Human Services (“HHS”) announced a $1.6 million civil penalty imposed against the Texas Health and Human Services Commission (“TX HHSC”), a state agency, for violations of HIPAA Privacy and Security Rules in connection with the unauthorized disclosure of electronic protected health information (“ePHI”). The ePHI breach – which exposed names, addresses, Social Security numbers, and treatment information of at least 6,617 individuals – was first reported to OCR on June 11, 2015, by Texas’s Department of Aging and Disability Services (“DADS”).

On November 5, 2019, Representatives Anna G. Eshoo (CA) and Zoe Lofgren (CA) introduced the Online Privacy Act (the “Act”), which proposes sweeping legislation that would create federal privacy rights for individuals, require companies to adhere to data minimization and establish a federal Digital Privacy Agency (“DPA”).

On October 22, 2019, the Federal Trade Commission announced that, for the first time, it has brought a case against a developer of “Stalking” Apps. The agency alleges that Retina-X Studios, and its owner, James N. Johns, Jr., developed and marketed three apps that allowed purchasers to surreptitiously monitor the movements and online activities of users of devices on which the apps were installed without the knowledge or permission of the device’s user. The FTC also alleges that the app developer took steps to ensure that a device user would not be aware that the app had been installed, bypassing mobile device manufacturers’ security restrictions and leaving the device vulnerable to cybersecurity risks. The apps were marketed as tools for monitoring the behavior of employees and children. The FTC further alleges that the app developer issued policies that made inaccurate representations regarding the security of their online systems, which were recently found to have been hacked twice during earlier incidents.

On September 6, 2019, the National Institute of Standards and Technology (“NIST”) released a preliminary draft of its Privacy Framework: A Tool for Improving Privacy Through Enterprise Risk Management (“Privacy Framework”).

The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP is pleased to announce Matthew Starr and Giovanna Carloni have joined CIPL, adding to its expertise in global privacy and data protection policy.

As an update to our previous blog posts, the FTC announced that it and the New York Attorney General reached a $170 million agreement with Google to resolve allegations that the company violated COPPA through its YouTube platform. Under the agreement, Google will pay $136 million to the FTC and $34 million to New York. The FTC voted 3-2 to authorize the action.

As an update to our previous blog post, according to media reports, Google has reached a settlement with the FTC in the range of $150 to $200 million over the agency’s investigation into the company’s alleged violations of COPPA through its YouTube platform. The settlement has not been announced by the FTC or Google, and the details of the settlement have not been made publicly available. These reports follow Google’s announcement earlier this week that it has created a separate YouTube Kids site, which will include different content for different age groups. This news also ...

On August 8, 2019, the FTC announced that Unrollme Inc. (“Unrollme”), an email management company, agreed to settle allegations the company deceived consumers about how it accesses and uses their personal emails. Unrollme offered users a service whereby the company would help unsubscribe users from unwanted subscription emails. In connection with this service, Unrollme required users to provide the company with access to their email accounts. The FTC alleged that Unrollme falsely told consumers it would not “touch” their personal emails. In fact, the FTC alleged, Unrollme shared its users’ email receipts (“e-receipts”) (i.e., emails sent to consumers following a completed transaction) with its parent company, Slice Technologies, Inc. The FTC’s complaint alleged that the parent company used information from the e-receipts (such as the user’s name, address, and information about products or services the individual purchased) for purposes of its own market research analytics products.

On August 8, 2019, the United States Court of Appeals for the Ninth Circuit allowed a class action brought by Illinois residents to proceed against Facebook under the Illinois Biometric Information Privacy Act (“BIPA”) (740 ICLS 14/1, et seq.).

In addition to Facebook’s record-breaking Federal Trade Commission penalty and settlement order, on July 24, 2019, the Securities and Exchange Commission announced charges against Facebook for inadequate and misleading disclosures over its privacy practices. Facebook, without admitting or denying the SEC’s allegations, has agreed to the entry of a final judgment ordering a fine of $100 million.

As previously reported on July 12, 2019, Facebook will pay a $5 billion penalty to the Federal Trade Commission to resolve a privacy probe into whether Facebook violated a prior FTC consent decree requiring the company to better protect user privacy. The $5 billion penalty is the largest imposed on any company for violating consumers’ privacy – nearly 20 times the largest privacy or data security penalty to date.

According to media reports, the Federal Trade Commission has approved a multimillion dollar fine as part of a settlement with Google related to the FTC’s investigation into YouTube’s children’s data privacy practices. The FTC found that, in violation of COPPA, Google had failed to adequately protect children under 13 who used the video-streaming service and improperly collected their data.

On July 17, 2019, the Federal Trade Commission published a notice in the Federal Register announcing an accelerated review of its Children’s Online Privacy Protection Rule (“COPPA Rule” or “Rule”), seeking feedback on the effectiveness of the 2013 amendments to the Rule, and soliciting input on whether additional changes are needed. Citing questions regarding the Rule’s application to the educational technology sector, voice-enabled connected devices, and general audience platforms that host child-directed content, the FTC indicated that it was moving up its review from a standard 10-year timeframe. The Commission vote to conduct the Rule review was unanimous, 5-0.

The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP recently published a Q&A document on organizational accountability in data protection (the “Q&A”).

While CIPL has written extensively about the concept of organizational accountability over many years, the Q&A is designed to clarify frequently raised questions about accountability and provide greater context and understanding of the concept, including for law and policy makers considering data privacy legislation around the globe.

The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP recently published a white paper on Organizational Accountability’s Existence in U.S. Regulatory Compliance and its Relevance for a Federal Data Privacy Law (the “White Paper”).

According to media reports, the Federal Trade Commission has approved a roughly $5 billion settlement with Facebook, Inc. to resolve a privacy probe investigating whether Facebook had violated a prior FTC consent decree requiring the company to better protect user privacy. The investigation followed reports that Cambridge Analytica improperly accessed the personal data of 87 million Facebook users.