On February 25, California's Attorney General Xavier Becerra and Senator Hannah-Beth Jackson introduced new legislation to amend the California Consumer Privacy Act (CCPA). The CCPA as currently enacted establishes a private right of action for consumers impacted by cyber security breaches. The amendment, known as SB-561, would expand the private right of action to cover any violation of a consumer’s rights under the CCPA. This would materially increase the risk to businesses of class action litigation from failures to comply with the privacy standards in the new law.
The amendment [...] Read more
On December 28, 2018, the Department of Health and Human Services (HHS) issued new voluntary cybersecurity guidance for the health care industry titled, “Health Industry Cybersecurity Practices: Managing Threats and Protecting Patients.” This four-volume set of consensus-based principles and practices (the “HICP”) reflects the recommendations of the 405(d) Task Group, a HHS and industry-led collaborative task group named for Section 405(d) of the Cybersecurity Act of 2015, a provision that calls for a more coordinated approach to cybersecurity in the health care industry. The HICP […] Read more
Michigan enacted the Michigan Data Security Act on December 28, 2018, imposing stringent cybersecurity measures on any person (individual or corporate) licensed by the Michigan Department of Insurance and Financial Services. Based on the 2017 NAIC data security model law and nearly identical to the South Carolina Insurance Data Security Act, the Michigan statute will require insurance licensees to adopt a number of measures including a comprehensive written information security program (“WISP”), the submission of an annual certification of compliance to the Department of Insurance and Financial […] Read more
South Carolina’s prescriptive data security law for insurers took effect on January 1, 2019. Subject to specified exemptions, the law requires any person licensed pursuant to South Carolina insurance laws to take certain steps, including among other things notification of specified cybersecurity events to the South Carolina Department of Insurance. Covered persons are also required to implement a written information security program (by July 1, 2019) and to comply with provisions on third-party service providers (by July 1, 2020).
Please see our previous coverage of the law for additional [...] Read more
In October 2018, the Federal Trade Commission (“FTC”) published a report that summarized discussions at a December 2017 workshop discussing the potential impact to consumers of privacy and security incidents. The purpose of the workshop was to explore whether government intervention in this arena is warranted under the enforcement authority granted to the FTC under the FTC Act, 15 U.S.C. § 41 et seq.
The report reveals that the workshop participants identified several types of potential impacts that they believe consumers may face in the wake of a data security incident that could warrant [...] Read more
The Securities and Exchange Commission issued an investigative report last week cautioning public companies to consider cyber incidents and threats when implementing internal accounting controls. The report details the SEC Enforcement Division’s investigations of nine public companies that were victims of cyber-related fraud schemes to determine whether the companies may have violated the federal securities laws by failing to maintain a sufficient system of internal accounting controls. Based on the investigations, the report concludes that public companies’ internal accounting controls […] Read more
On September 27, 2018, the Department of Justice Computer Crime and Intellectual Property (CCIPS) Cybersecurity Unit released Version 2.0 of its “Best Practices for Victim Response and Reporting of Cyber Incidents.” Originally issued in 2015, the updated guidance seeks to help organizations better equip themselves to be able to respond effectively and lawfully to cyber incidents. The updated version distills insights from private and public sector experts, incorporating new incident response considerations in light of technical and legal developments in the past three years. While the guidance [...] Read more
India recently introduced the Personal Data Protection Bill 2018 (“Bill”). The transfer of personal data in India is currently governed by the SPD Rules (Sensitive Personal Data and Information, 2011), which is however considered outdated and not fully protective of personal data. The Bill comes as a result of the country’s Supreme Court recent judgment that declared privacy a fundamental right of an individual. The Srikrishma Committee (“Committee”) was responsible for drafting the Bill and coined a legal framework that is aimed to shape the country’s digital agenda. The Committee […] Read more
Last Friday, the California Senate and Assembly passed SB-1121, amending the California Consumer Privacy Act (“CCPA”) as enacted in June. We previously issued an advisory following the June enactment, and will host a webinar discussing the law (as now amended) on September 12. This blog post highlights some of the key amendments to the CCPA. SB-1121 amends the CCPA as follows: Exemptions for Health Providers. The bill clarifies that the CCPA does not apply to protected health information (“PHI”) or medical information governed by the Health Insurance Portability and Accountability […] Read more
South Carolina recently enacted a prescriptive data security law for insurers. The law bears resemblance to the New York Department of Financial Services (NYDFS) cybersecurity rules that entered into force last year. In short, the South Carolina law requires licensees (defined below) to develop and implement a comprehensive written information security program (a “WISP”) and to notify the South Carolina Department of Insurance of certain cybersecurity events. Effective on January 1, 2019, the law includes extended deadlines for compliance with the requirement to implement a WISP (July 1, 2019) […] Read more
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