On March 2, 2023, the White House released its National Cybersecurity Strategy (the Strategy). The Strategy sets out ambitious goals for the federal government to hold countries accountable for irresponsible behavior in cyberspace and to

Continue Reading White House Releases National Cybersecurity Strategy: Key Takeaways for the Private Sector

On March 15, 2022, the Federal Trade Commission (FTC) announced it had filed a complaint against Residual Pumpkin Entity, LLC, formerly doing business as CafePress, and PlanetArt LLC, which bought CafePress in 2020 (collectively, CafePress). The FTC alleged that CafePress, an online platform used by consumers who bought or sold customized t-shirts, mugs, and other merchandise, had, among other things, failed to implement reasonable security measures, and misrepresented that it would use email addresses for order notification and receipt, when in fact it used email addresses for marketing purposes. As part of the proposed settlements with Residual Pumpkin and Planet Art, each is required, among other things, to implement, annually assess, test, and monitor a comprehensive written information security program. Residual Pumpkin also would be required to pay a $500,000 penalty.
Continue Reading FTC Issues Complaint and Proposed Settlement with Online Retailer for Deceptive and Unfair Security and Privacy Practices

On March 9, 2022, the U.S. Securities and Exchange Commission (SEC) proposed new rules that would require current and periodic reporting of material cybersecurity incidents as well as more detailed disclosure of cybersecurity risk management, expertise, and governance. This alert summarizes the proposed changes, which are subject to public comment until the later of May 9, 2022 or 30 days after publication in the Federal Register.
Continue Reading SEC Proposes New Cybersecurity Reporting and Enhanced Standardized Disclosure

On January 12, 2021, the District Court of the District of Columbia was the latest court to grant a motion to compel production of a forensic report prepared by an external security-consulting firm in data breach litigation.1 This case involved a cyberattack on a law firm that led to the public dissemination of the confidential information of the plaintiff, who was a former client of the firm. The plaintiff moved to compel his former law firm to produce “all reports of its forensic investigation into the cyberattack.”2 The defendant asserted that it had produced all relevant materials, including materials related to a second-track investigation conducted by its usual cybersecurity vendor, eSentire, for business continuity purposes. However, the plaintiff also sought a report prepared by Duff & Phelps, who was retained by the defendant’s outside litigation counsel. The defendant argued the Duff & Phelps report was protected by the work-product and attorney-client privileges. The court rejected the defendant’s arguments and ordered production of the Duff & Phelps report and associated materials.
Continue Reading Court Orders Production of a Data Breach Forensic Report, Rejecting Arguments That Attorney-Client Privilege and Work Product Protection Apply

On March 11, 2020, the California Attorney General issued further revisions to the proposed regulations implementing the California Consumer Privacy Act (CCPA).

For context, in passing the CCPA, the legislature directed the California Attorney General to solicit broad public participation and adopt regulations to further the purposes of the CCPA. On October 11, 2019, the California Attorney General issued the first draft of the proposed regulations, imposing obligations on businesses that arguably exceeded the statutory requirements of the CCPA, which were noticed for a 45-day public comment period. On February 10, 2020, after the CCPA had gone into effect and after receiving nearly 1,700 pages of written comments and additional oral comments, the California Attorney General issued a second draft of the proposed regulations, scaling back some of these obligations and adding some helpful clarification. During the subsequent 15-day written public comment period on these proposed changes, approximately 100 written comments spanning 782 pages were submitted.
Continue Reading Third Time’s the Charm? Newest Round of Modifications to Proposed CCPA Regulations Issued by the California Attorney General

Updates to Compliance Likely Required

On February 10, 2020, the California Attorney General issued the proposed text of modified regulations implementing the California Consumer Privacy Act (CCPA). This draft is a correction of a version that the California Attorney General issued on February 7, 2020. While the California Attorney General previously indicated that major changes to the proposed CCPA regulations were not anticipated, these modifications are likely to have a significant impact on CCPA compliance efforts, particularly regarding privacy notices, agreements between businesses and service providers, and policies on handling consumer requests.
Continue Reading CCPA Update: California Attorney General Issues Modifications to Proposed CCPA Regulations