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 … Continue Reading
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 … Continue Reading
On March 23, 2018, President Trump signed into law the Consolidated Appropriations Act, 2018, which contained a section entitled the Clarifying Lawful Overseas Use of Data (CLOUD) Act. The CLOUD Act significantly revises the rules underlying law enforcement requests for access to communications information stored abroad, and may have far-reaching implications for companies that collect, … Continue Reading
In February 2018, the Federal Trade Commission (FTC) released a report that explores the complexities of the mobile ecosystem and makes recommendations for industry to improve the mobile security update process for consumers. The report is part of the FTC’s effort to address concerns that mobile devices are not receiving the operating system patches they … Continue Reading
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 … Continue Reading
On June 1, 2018, the Alabama Data Breach Notification Act of 2018 will take effect. In addition to being the last state to enact a breach notification law, Alabama’s new law distinguishes itself in a variety of unique ways. Consistent with other state breach notification laws, the new law defines “sensitive personally identifying information” maintained … Continue Reading
On February 26, 2018, the U.S. Court of Appeals for the Ninth Circuit issued an en banc decision in FTC v. AT&T holding that the Federal Trade Commission (FTC) Act’s “common carrier” exemption is activity-based, reversing the panel’s decision that the exemption is status-based, which would have opened a large enforcement gap for telecommunications companies … Continue Reading
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 … Continue Reading
On February 21, 2018, the U.S. Securities and Exchange Commission (SEC) released its latest Interpretive Guidance on Public Company Cybersecurity Disclosures. Although cybersecurity has been a focus of the SEC for many years, the release is the first formal guidance issued by the agency. Previously, the SEC’s Division of Corporation Finance issued informal staff guidance … Continue Reading
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 … Continue Reading
On September 5, 2017, the Federal Trade Commission (FTC) announced that it and 32 state attorneys general had settled charges with Lenovo, Inc., regarding the company’s practice of pre-loading advertising software on its laptops that compromised consumers’ cybersecurity and privacy.1 In many respects, the case was reasonably straightforward: the facts as alleged were clear, and … Continue Reading
The U.S. District Court for the Northern District of California recently issued a mixed ruling on D-Link Systems’ motion to dismiss in FTC v. D-Link Sys., Inc.1 D-Link sells routers and Internet protocol (IP) cameras that it markets as having good data security, including “the latest wireless security features to help prevent unauthorized access” and … Continue Reading
The biggest question looming over every class-action case filed in response to a data breach is: Will the plaintiffs have standing? The answer has divided courts in recent cases across the country. Last year, the U.S. Supreme Court held in Spokeo, Inc. v. Robins that Congress could not confer standing to plaintiffs based on a … Continue Reading
On September 5, 2017, the Federal Trade Commission (FTC) announced that it and 32 state attorneys general had settled charges with Lenovo regarding the company’s practice of pre-loading software on its laptops that compromised consumers’ cybersecurity and privacy. As part of the settlement, Lenovo agreed to pay $3.5 million in penalties to the states, and per an … Continue Reading
On August 15, 2017, the Federal Trade Commission (FTC) announced that it had reached an agreement with Uber Technologies to settle allegations that the ride-sharing company had deceived consumers by failing to live up to its privacy and data security promises.1 Specifically, the FTC levied two deception counts against Uber: (1) that the company had … Continue Reading
On July 3, 2017, the Federal Trade Commission (FTC) announced that it had settled charges that defendants Blue Global, an operator of dozens of consumer loan lead generation websites, and its founder and CEO, Christopher Kay, violated the FTC Act. The FTC alleges that the defendants had, among other practices, misled consumers about Blue Global’s … Continue Reading
On August 25, 2016, investment firm Muddy Waters Research announced it had taken a short position in St. Jude Medical, Inc., and released a report suggesting a “strong possibility that close to half of” St. Jude revenues were about to disappear for a period of roughly two years because St. Jude’s implantable cardiac devices were allegedly … Continue Reading
On March 1, 2017, new cybersecurity rules went into effect for entities regulated by the New York State Department of Financial Services (DFS). The Cybersecurity Requirements for Financial Services Companies are designed to help protect business and customer information and the IT systems of the entities that DFS regulates. While the Cybersecurity Requirements took effect on March … Continue Reading
The W-2 phishing scams are back. Fraudsters have learned that W-2 phishing scams can be highly effective when targeting businesses while they are handling and sending employee income-tax-related documents early in a new year. Once fraudsters obtain the information on W-2 tax forms about employees from businesses, they quickly attempt to commit tax identity theft … Continue Reading
On July 6, 2016, the European Parliament adopted the first-ever pan-European law on cyber security. The law, entitled the “Directive on the Security of Network and Information Systems” (NIS Directive), imposes security requirements and security incident notification obligations on digital service providers and operators of essential services. The NIS Directive was enacted as part of … Continue Reading
The State of Tennessee recently amended its data breach notification statute, Tenn. Code Ann. § 47-18-2107, which is set to go into effect on July 1, 2016. Numerous commentators have proclaimed that the amendment1 marks a watershed moment—that with the enactment of S.B. 2005, Tennessee becomes the first state to eliminate the encryption safe harbor … Continue Reading
The Consumer Financial Protection Bureau (CFPB) recently brought its first data security enforcement action, adding itself to the growing list of federal regulators tackling data security issues. The CFPB’s enforcement action was against Dwolla Inc., a Des Moines, Iowa-based online payment platform. The CFPB alleged that Dwolla misrepresented its data security practices, and as a … Continue Reading
On April 14, 2016, the European Parliament formally adopted the General Data Protection Regulation (GDPR). With this vote, the new EU data protection legal framework will become legally effective in two years and 20 days from its publication in the EU Official Journal (expected in May 2016). By May 2018, companies will have to comply … Continue Reading
On February 23, 2016, the Federal Trade Commission (FTC) announced a settlement with computer hardware maker ASUSTeK Computer, Inc. (ASUS). The ASUS settlement highlights the FTC’s position regarding security in the connected device market: connected device manufacturers are responsible for security shortcomings in their devices and are expected to promptly update or patch any identified … Continue Reading
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