On May 21, 2024, the Council of the European Union (the Council) formally signed off on the latest draft of the European Union’s (EU) Artificial Intelligence Act (AI Act) (see the press release here). This marks the final seal of approval from the EU legislators. The text will officially become law once it is signed by Presidents of the European Parliament and of the Council and published in the Official Journal of the EU. This could take place within the next two to four weeks. However, the law will have phased effective dates, with the first obligations (i.e., the rules on prohibited AI systems) becoming effective at the end of this year.Continue Reading EU AI Act Is Now Adopted

On May 9, 2024, Maryland Governor Wes Moore signed HB 603, the Maryland Age-Appropriate Design Code (Maryland AADC). The Maryland AADC builds on Maryland’s Online Data Privacy Act, which was signed into law the same day and requires companies to provide certain protections for personal data of a consumer when the company knows or has reason to know the consumer is a child under the age of 13.1 The Maryland AADC layers on additional requirements for “covered entities” and expands the definition of “child” to include individuals under the age of 18.Continue Reading Maryland Passes Age-Appropriate Design Code

On May 17, 2024, Governor Jared Polis signed the Colorado Artificial Intelligence Act (SB 24-205) (CAIA), regulating the development, deployment, and use of artificial intelligence (AI) systems. Colorado is the first state to enact comprehensive AI legislation. The law becomes effective February 1, 2026.Continue Reading Colorado Passes First-in-Nation Artificial Intelligence Act

On April 26, 2024, the Federal Trade Commission (FTC) announced a Final Rule that amends the Health Breach Notification Rule (HBNR or Rule) to significantly broaden the FTC’s enforcement power in the area of digital health. Under the Final Rule, many developers of everyday health and wellness apps (Developers) will now constitute “health care providers” subject to the HBNR. The consequences of failing to comply with the HBNR could be steep—failure to comply with the Rule could subject a company to civil penalties of $51,744 per violation. Below, we provide a summary of the Final Rule and highlight some of the key challenges it presents.Continue Reading FTC Final Rule Officially Broadens Health Breach Notification Rule, Targets Health and Wellness Apps

Despite national efforts over the past decades, child sexual abuse material (CSAM) and online child sexual exploitation are still unfortunately prevalent. In 2023, the National Center for Missing and Exploited Children (NCMEC) received over 35.9 million reports of suspected CSAM.[1] This is more than a 20 percent increase over the previous three years. Notably, NCMEC’s 2023 report highlighted concern about the significant increase in reports involving generative artificial intelligence, noting that the Center received 4,700 reports of CSAM or other sexually exploitative content related to these technologies.Continue Reading New Minor Safety Obligations for Online Services: REPORT Act Expands Child Sexual Exploitation Reporting Requirements

The Federal Trade Commission (FTC) recently announced two proposed settlement agreements (in the form of a stipulated order)1 (the “consent orders”) with Monument, Inc., an alcohol addiction treatment service, and Cerebral, Inc., a subscription-based online health care treatment service, signaling the FTC’s continued commitment to pursue digital health companies that the FTC believes have improperly used or disclosed consumers’ health information. The complaints focus on the companies’ disclosure of consumers’ health information to advertising platforms without the consumers’ consent, as well as Cerebral’s alleged failure to honor its “easy” subscription cancellation promises. Of note, the FTC complaint against Cerebral named its CEO personally liable for his alleged involvement with the counts raised in the complaint. The CEO has not agreed to a settlement and the case will proceed in the district court.Continue Reading FTC Announces Proposed Settlement Agreements with Two Digital Health Companies for Disclosing Consumers’ Health Information to Third-Party Advertisers, Among Other Violations

The recent omnibus foreign relations package signed by President Biden on April 24, 2024, includes the Protecting Americans’ Data from Foreign Adversaries Act of 2024 (the Act), a set of sweeping privacy provisions prohibiting data brokers from sharing sensitive personal information with a broad range of entities that may have ties to Russia, China, Iran, and North Korea. The Federal Trade Commission (FTC) will enforce these prohibitions and have the ability to seek civil penalties for violations. The provision takes effect 60 days after the date of enactment of the Act.Continue Reading New Federal Data Broker Restrictions Signed into Law