Data Security

SEC Adopts Statement and Interpretive Guidance on Public Company Cybersecurity Disclosures

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The Securities and Exchange Commission (SEC) issued a press release announcing its unanimous approval of a statement by SEC Chairman Jay Clayton and interpretive guidance (the “2018 Guidance”) to assist public companies in preparing disclosures about cybersecurity risks and incidents. This is the first interpretive guidance published by the full Commission on the topic of cybersecurity for public companies, and it may foreshadow increased SEC action to protect investors from the potential negative effects of increasingly common large-scale data breaches. The 2018 Guidance formalizes and expands [...] Read more

100 Days Until GDPR Effective Date – Sharing Our GDPR Experience

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In less than 100 days, the General Data Protection Regulation (GDPR) will go into effect. This means that as of May 25, 2018, each national Supervisory Authority will have the authority to apply and enforce the GDPR. The GDPR raises the bar in terms of requirements substantially higher than the Data Protection Framework Directive. For instance, it recognizes new rights for data subjects (e.g. right to be forgotten and right to data portability), introduces data breach notification requirements, introduces the concept of a Data Protection Officer, and brings enhanced accountability obligations. Given [...] Read more

Privacy & Data Security Team Launches Unique GDPR Tracker Website

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“To Harmonize or Not To Harmonize: That Is the Question.” With the the GDPR fast approaching on May 25, 2018, European Member States are getting ready with the implementation of national legislation. Although the GDPR is a regulation, and directly applicable in all Member States, it has left room for country-specific legislation in several different regards (such as the processing of employee data or individual rights restrictions). Most Member States still only have draft legislation at this point, but the expectation (or at least intention) is that each country will have adopted legislation [...] Read more

Lenovo Wins Second Motion to Dismiss in Adware Class Action

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By Jay Repko A California district court recently dismissed—for the second time—consumer claims that technology giant Lenovo Inc. violated New York’s Deceptive Acts and Practices Statute by selling laptops with preinstalled VisualDiscovery software that allegedly invades users’ privacy and exposes users to security breaches.  In reaching this decision, Judge Haywood S. Gilliam, Jr. concluded that dismissal was warranted for two reasons: (i) the plaintiffs lacked standing and (ii) the plaintiffs failed to adequately allege actual damages. By its very terms, New York’s Deceptive [...] Read more

Data Protection Litigation to Become a New Reality in Belgium

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On November 16, 2017 the Belgian Senate adopted an “Act on the Establishment of the Data Protection Authority” (the “Act”). Following Austria, Germany, and the UK, Belgium is the fourth EU Member State to pass a domestic statute implementing the General Data Protection Regulation 2016/679 (“GDPR”) prior to its effective date of 25 May 2018. The new Belgian Act sets forth the structure and legal organization of the Data Protection Authority (“DPA”), which will serve as the successor of the current Belgian Privacy Commission. More importantly, the Act significantly broadens the DPA’s [...] Read more

EU DPAs and the Future of Privacy Shield

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The Article 29 Working Party group (WP29) of European data protection authorities recently announced that they will legally challenge the adequacy of the Privacy Shield Framework unless the U.S. government addresses certain “prioritized concerns” by May 25, 2018. Privacy Shield provides a framework which helps over 2500+ participating U.S. companies legally transfer EU personal data to the United States. The WP29 announcement follows a report and press release from the European Commission in October which stated that “the Privacy shield continues to ensure an adequate level of protection.” [...] Read more

Bill Proposes Jail Time for Executives Who Conceal Data Breaches

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On November 30, 2017, a group of U.S. senators re-introduced a bill, known as the Data Security and Breach Notification Act, which seeks to impose criminal liability of up to five years of jail time on any corporate executive convicted of “intentionally and willfully” concealing a data breach. The bill also proposes that the Federal Trade Commission (FTC) establish standard, nationwide security protocols for businesses to follow.  The bill would also require companies to report data breaches to consumers or users within 30 days unless a U.S. federal law enforcement or intelligence agency [...] Read more

Virginia Amends Data Breach Notification Law

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Virginia amended the state’s data breach notification law, effective July 1, 2017, to expand notification requirements for employers and payroll service providers to data breaches that involve “unauthorized access and acquisition of unencrypted and unredacted computerized data containing a [Virginia] taxpayer’s identification number in combination with the income tax withheld for that taxpayer. . . .”[1] The expanded notification obligation is subject to the same likelihood of harm threshold that applies in the original law. Notification is required only when the employer or payroll [...] Read more

Eighth Circuit Affirms Dismissal of Scottrade Data Breach Suit

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The United States Court of Appeals for the Eighth Circuit recently affirmed the district court’s dismissal of a putative class action brought by customers of the brokerage firm Scottrade in the wake of an alleged data breach impacting Scottrade in 2013.  The named plaintiffs had asserted several contract-based claims against Scottrade, alleging that Scottrade had violated its contractual obligations to take adequate steps to safeguard the personal identifying information (“PII”) of its customers. The Eighth Circuit first considered whether the plaintiffs had adequately alleged standing.  [...] Read more

FTC Updates Data Security Guidance for Businesses

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In June, the Federal Trade Commission released a new guide for businesses on implementing sound data security protections and procedures. In “Protecting Personal Information: A Guide For Business,” the FTC offers “10 practical lessons” based on the numerous enforcement actions brought by the FTC. The guide offers insight into the thinking of this key federal regulator. Key points from the guide: “Start with Security.” Build information security considerations into business processes so that they are part of “the decisionmaking in every department of your business.” The FTC [...] Read more