On September 23, 2018, Governor Jerry Brown signed into law SB-1121, a bill that makes several amendments to the California Consumer Privacy Act (CCPA or the Act). The controversial privacy law, which is set to take effect in 2020, recently sparked a war of words among industry, privacy advocates, and the California Attorney General, each of whom sent letters to the California legislature urging amendments to the legislation. The California Chamber of Commerce, along with 36 business coalitions (Industry), submitted a letter to California Senator Bill Dodd in August, calling the Act “unworkable,” urging both technical and substantive cleanup of the Act, and introducing 21 proposed amendments. A coalition of 20 consumer privacy advocate groups (Advocates) responded with their own letter, highlighting the negative consequences Industry’s proposed changes would have on consumer rights.

The Industry and Consumer Advocates did not wholly disagree. Both coalitions urge the legislature to make technical fixes, such as clarification that businesses do not have to collect extra information to comply with the Act, as well as clarification of the definition of de-identified information. The California Attorney General also weighed in with comments, requesting specific amendments and additional time to issue regulations. In response to the input from these various stakeholders, the legislature amended the Act on August 31, 2018 and sent it to the Governor’s desk. This article sets forth the principal issues discussed in the letters and the legislature’s response.
Continue Reading California Consumer Privacy Act: Industry, Advocate, and Enforcement Concerns and Legislative Amendments

On April 30,2018, the Federal Trade Commission (FTC) announced a settlement with mobile phone manufacturer BLU Products and its owner over allegations that the company failed to implement appropriate procedures to oversee their service providers’ security practices, which allowed the service provider to install software containing commonly known security vulnerabilities on consumers’ mobile devices and to collect detailed personal information about consumers, such as text messages and location information, without consumers’ notice and consent.

According to the FTC’s complaint, BLU and its owner contracted with China-based ADUPS Technology to preinstall certain security software on BLU devices. The complaint alleged that, unbeknownst to consumers, the ADUPS software on BLU devices transmitted their personal information to ADUPS servers, including contents of text messages, real-time location data, call and text message logs, contact lists, and a list of applications installed on the device. The FTC did not allege that ADUPS used or disclosed consumers’ personal information.Continue Reading Feeling BLU: What You Need to Know About Overseeing Your Service Providers

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

The Federal Trade Commission (FTC) recently granted a petition by Sears Holding Management requesting that the FTC reopen and modify a 2009 FTC order settling charges that Sears failed to disclose adequately the scope of consumers’ personal information it collected via a downloadable software app.

Sears’ 2009 Order

On August 31, 2009, the FTC entered a final order in In the Matter of Sears Holdings Management Corporation after determining that from approximately April 2007 to January 2008, Sears disseminated a desktop software application through its websites that collected sensitive information, such as online bank statements, drug prescription records, and video rental records, yet Sears failed to disclose the scope of the application’s data collection. Among other things, the order required Sears to disseminate all future “tracking applications” in a specified manner, including by making certain disclosures and obtaining express opt-in consent using processes stipulated by the order, for a 20-year term.
Continue Reading FTC Grants Sears’ Petition to Reopen and Modify 2009 Order Concerning Online Browsing Tracking

The Federal Trade Commission (FTC) has provided new guidance on how it will enforce the Children’s Online Privacy Protection Act (COPPA) against companies collecting voice recordings from children, loosening the rules on how companies can collect and use voice data. Under the guidance, online services covered by COPPA can now collect voice recordings from children without obtaining verifiable parental consent so long as they collect and use the voice recording solely as a replacement for written words, such as to perform a search or fulfill a verbal instruction or request, and maintain the file for only the brief period of time necessary for that purpose. The FTC’s publication builds on previous FTC guidance making clear that COPPA applies to Internet of Things devices, including connected children’s toys. The publication marks the first time that the FTC has publicly signaled that it will refrain from bringing enforcement actions in circumstances where it believes COPPA has been violated.
Continue Reading FTC Carves New Path for Collecting Voice Recordings from Children Without Parental Consent

As connected devices become ubiquitous, it comes as no surprise that interactive toys that connect to the internet are more popular than ever. At the same time, regulators have taken note of the privacy and security concerns raised by lawmakers and privacy advocates about the proliferation of smart toys that collect personal information from kids. Recent guidance issued by both the Federal Trade Commission (FTC) and the Federal Bureau of Investigation (FBI) suggests that the agencies may be taking a closer look at the rapidly expanding connected toy market, a small part of the largely unregulated “Internet of Things.”
Continue Reading Hello, Dolly: What You Need to Know About Connected Smart Toys and Privacy