In a surprising twist, the California legislature rushed last week to pass one of the most comprehensive privacy laws in the country. The bill was introduced only a week prior, and within hours of passage,
Continue Reading California Enacts Sweeping Privacy Law to Avert Potential Ballot Measure
Eleventh Circuit LabMD Decision Significantly Restrains FTC’s Remedial Powers in Data Security and Privacy Actions
The U.S. Court of Appeals for the Eleventh Circuit recently released its highly anticipated decision in the long-running case pitting the now-defunct medical laboratory LabMD against the Federal Trade Commission (FTC), vacating the FTC’s data
Continue Reading Eleventh Circuit LabMD Decision Significantly Restrains FTC’s Remedial Powers in Data Security and Privacy Actions
What’s Old Is New Again: FTC Takes Rare Step of Withdrawing and Reissuing Expanded Data Security Settlement with Uber in Light of 2016 Data Breach
On April 12, 2018, the Federal Trade Commission (FTC) announced that it was withdrawing its proposed August 2017 privacy and data security settlement with Uber Technologies and issuing a new and expanded proposed settlement.1 According to the FTC, the reason for this extraordinary step was to address additional allegations of misconduct by the ride-sharing company in connection with a data breach it suffered in 2016. The revised complaint includes new factual allegations regarding that breach,2 and the revised consent order includes significant new reporting obligations for the company regarding future breaches, new obligations for the order’s mandated privacy program, and additional reporting and recordkeeping obligations that will last for longer periods of time.3
Those that closely follow the FTC know that any modifications to consumer protection settlements after they have been proposed by the FTC are extremely rare, so it’s worth taking a closer look at what triggered this unusual action and the important new insight it provides into the FTC’s current thinking on what it considers unreasonable security practices. Additionally, the FTC’s revised complaint provides, for the first time, concrete guidance on what it considers “legitimate” uses of a bug bounty program.
Continue Reading What’s Old Is New Again: FTC Takes Rare Step of Withdrawing and Reissuing Expanded Data Security Settlement with Uber in Light of 2016 Data Breach
FTC Announces Settlement with PayPal for Alleged FTC Act and GLBA Violations by Venmo
On February 27, 2018, the Federal Trade Commission (FTC) announced1 that it had reached an agreement with PayPal to settle allegations that its peer-to-peer payment service, Venmo, engaged in deceptive acts and practices and violated the Gramm-Leach-Bliley Act (GLBA)’s Safeguards Rule2 and Privacy Rule.3 Since 2011, Venmo has offered peer-to-peer payment services through an app that consumers can download, link to their external bank accounts, and use to transfer and receive money to and from other users. In its complaint, the FTC alleged that PayPal, through Venmo, failed to adequately disclose that: (1) it could freeze or remove funds credited to a customer’s account; (2) the Default Audience Setting did not ensure that future transactions were visible only to chosen audiences; and (3) the Individual Audience Setting did not ensure that any single transaction was visible only to the chosen audience. The FTC also alleged that PayPal, through Venmo: (1) misrepresented that it protected consumers’ information with “bank-grade security systems;” (2) failed to protect the security, confidentiality, and integrity of customer information in violation of the GLBA’s Safeguards Rule; and (3) failed to send an adequate initial privacy notice to customers detailing its privacy policies and practices in violation of the GLBA’s Privacy Rule.4
Continue Reading FTC Announces Settlement with PayPal for Alleged FTC Act and GLBA Violations by Venmo
A Look Ahead at Privacy and Data Security in 2018
2018 promises to be an interesting year in the world of privacy and cybersecurity. In this article, we highlight a few of the most notable developments we expect this year, including major developments in Europe, changes and pending cases at the Federal Trade Commission (FTC), notable U.S. Supreme Court cases scheduled to be decided this year, and some areas of legislation that actually may become law in the U.S.
Big Changes Taking Effect in the European Union
One of the biggest areas where everyone in the privacy field will be looking in 2018 is the European Union (EU). On the legislative front, the General Data Protection Regulation (GDPR) will enter into force on May 25, 2018; the proposed e-Privacy Regulation is scheduled to be adopted this year; and the EU parliament will issue a report on the proposed Regulation on Non-Personal Data. Additionally, the Court of Justice of the EU (CJEU) will rule on several important data protection cases, including on third-party tracking, the right to be forgotten, and the possibility of class actions.Continue Reading A Look Ahead at Privacy and Data Security in 2018
FTC Holds Workshop on Informational Injury
On December 12, 2017, the Federal Trade Commission (FTC) held a workshop to examine consumer injury in the context of privacy and data security. The motivation for the workshop, according to Acting FTC Chairman Maureen Ohlhausen, was to help the FTC better understand consumer informational injury, weigh effectively the benefits of intervention against its inevitable costs, and to help guide the future application of the substantial injury prong of the FTC’s unfairness standard. A variety of panelists from a wide range of backgrounds, including business, academia, and consumer advocacy, addressed questions such as how to best characterize these injuries, how to accurately measure such injuries and their prevalence, and what factors businesses and consumers consider when evaluating the trade-offs between providing information and potentially increasing their exposure to injuries.
Continue Reading FTC Holds Workshop on Informational Injury