Eighth Circuit Affirms Dismissal of Scottrade Data Breach Suit

Written by
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

UK will soon introduce a new Data Protection Bill

Written by
The UK Department for Culture, Media & Sport is planning to present a new Data Protection Bill to the Parliament in early September. This new Bill will replace the current UK Data Protection Act 1998 and will effectively incorporate the EU General Data Protection Regulation (“GDPR”) in the UK legal system. The new Data Protection Bill is one of the main goals of the recently elected government, as also expressed in the Queen’s Speech in June. Its primary aim is to ensure that the UK upholds the same data protection principles as the rest of the EU once it leaves the Union, which will [...] Read more

Data Processing at Work: New Challenges towards Compliance

Written by
The Article 29 Working Party (“WP29”) recently issued an opinion that discusses the processing of employee personal information (Opinion 02/2017). WP29 focuses on the use of new technologies by employers and assesses requirements in light of the upcoming General Data Protection Regulation (“GDPR”). Consent and legal bases to process personal information The WP29 has historically asserted that employees’ consent should not be a legal basis for processing employees’ personal information. The power imbalance between employer and employee leads to an uneven situation where consent [...] Read more

FTC Updates Data Security Guidance for Businesses

Written by
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

Anthem Settles Data Breach Litigation for Record-Setting $115M

Written by
Health insurance giant Anthem, Inc. agreed to the largest data breach settlement to-date last week, ending multi-district consumer litigation over a 2015 data breach for $115 million.  The data breach, which resulted from a hacker-orchestrated cyberattack following the theft of an employee password, exposed personally identifiable information (“PII”) and protected health information (“PHI”) of nearly 80 million people.  The stolen information included the names of current and former clients, dates of birth, addresses, social security numbers, and other medical information. The settlement [...] Read more

Alston & Bird Issues Cyber Alert on the New Chinese Cybersecurity Law and Regulations

Written by
On Monday, June 26, 2017, Alston & Bird’s Kim Peretti, Justin Hemmings, and Emily Poole issued an advisory on recent changes in Chinese Cybersecurity Law. The new law asserts greater control over all data collection and generation in China, as well as the processing of data from Chinese data subjects. While the law entered into force on June 1, 2017, there is still uncertainty as to how the law will be interpreted and enforced, including which companies are subject to the law. The Advisory explores the scope and requirements of the Cybersecurity Law and reasonable interpretations of the [...] Read more

Northern District of Illinois Dismisses Barnes & Noble Data Breach Lawsuit

Written by
Earlier this month, the United States District Court for the Northern District of Illinois entered an order dismissing with prejudice a putative class action concerning a security breach affecting PIN pad devices at numerous Barnes & Noble locations.  The lawsuit, In re Barnes & Noble Pin Pad Litigation, No. 12-cv-8617 (N.D. Ill.), was brought by consumers who had used credit and debit cards at Barnes & Noble during the time period of the breach. The operative complaint pleaded several causes of action against Barnes & Noble, including breach of implied contract and the violation [...] Read more

Data Monetization and State Privacy Laws

Written by
On June 8, magazine publisher Trusted Media Brands, Inc. settled a class action lawsuit for $8.2 million after purportedly disclosing the personal information and magazine choices of customers to third parties.  The lawsuit, Taylor v. Trusted Media Brands, Inc., No. 7:16-cv-01812 (S.D.N.Y. June 8, 2017), alleged that the publisher’s actions violated Michigan’s Video Rental Privacy Act (VRPA), demonstrating the sometimes hidden legal risks of data monetization. VRPA, inspired by the federal Video Privacy Protection Act, was passed in 1988 and applies to the purchase, rental, or borrowing [...] Read more

Fourth Circuit Court of Appeals Allows Wikimedia Upstream Suit to Proceed

Written by
On May 23, 2017, the Fourth Circuit Court of Appeals issued its opinion on Wikimedia foundation v. NSA/CSS. The Court vacated and remanded the NSA’s previously successful motion to dismiss Wikimedia’s Fourth and First Amendment claims against the NSA’s Upstream surveillance program, while a 2-1 majority upheld the dismissal of the eight other organizations joined as co-plaintiffs. The Court held that Wikimedia’s complaint contained sufficient factual allegations to determine Article III standing and that the District Court misapplied Clapper v. Amnesty International USA’s analysis of [...] Read more

Facebook Fined for WhatsApp Data Linking Fallout

Written by
On 18 May 2017, the European Commission (“Commission”) fined Facebook €110 million ($122 million) for misrepresentations made in its application for competition clearance of the company’s acquisition of WhatsApp. In its merger application, Facebook claimed that it would be unable to automatically match Facebook users’ accounts and WhatsApp users’ accounts for marketing and other purposes. However, in August 2016, WhatsApp introduced functionality enabling the linking of WhatsApp users’ phone numbers with Facebook users’ identities. This is the first time since the new Merger Regulation [...] Read more