On November 8, 2024, the California Privacy Protection Agency (CPPA) Board met to discuss and vote on various proposed California Consumer Privacy Act (CCPA) regulations related to cybersecurity audits, automated decision-making technology (e.g., artificial intelligence (AI)), privacy risk assessments, and a wide assortment of other updates to existing CCPA regulations; data broker registration regulations; and the development of the Delete Request and Opt-Out Platform (DROP) required by the Delete Act. The CPPA Board also voted to approve settlements with two data brokers for allegedly failing to register and pay an annual fee as required by the Delete Act.Continue Reading California’s Privacy Regulatory Odyssey Continues: Formal CCPA Rulemaking on the Horizon Amidst Expanded Data Broker Requirements
Regulatory
Regulators in Europe Signal Increased Scrutiny of Online Platforms
In recent months, politicians and regulators across a number of jurisdictions have called on operators of online platforms to take seriously their legal obligations to promote a safe online environment. The safety of children online has continued to dominate this conversation, with a recent joint UK-U.S. statement (Statement) declaring that online platforms should “go further and faster in their efforts to protect children.”
This alert sets out the regulatory focus areas of the European Commission (EC), the Irish Coimisiún na Meán (CNAM), and the UK’s online safety regulator Ofcom.Continue Reading Regulators in Europe Signal Increased Scrutiny of Online Platforms
Subscription and Auto-Renew Offerings Face New Hurdles: FTC Issues Broad “Click-to-Cancel” Rule Imposing Nationwide Requirements
Companies that automatically renew customers’ subscriptions or memberships, take note. On October 16, 2024, the Federal Trade Commission (FTC) announced sweeping amendments to the Negative Option Rule, which would apply to a host of subscription-based products and services that have an auto-renewal feature (i.e., a negative option offering), including those directed to businesses. The Rule includes specific and prescriptive requirements, such as requirements to 1) obtain consumers’ affirmative consent to an auto renewal feature “separate from any other portion of the transaction,” 2) present all material terms of the transaction “immediately adjacent to” the means of recording consumer consent, and 3) allow for simple cancellation in the same medium the consumer used to consent, noting that a chatbot cancellation method would not be acceptable unless the initial transaction was made through a chatbot. Violations of the Rule would be subject to $51,744 in civil penalties per violation.Continue Reading Subscription and Auto-Renew Offerings Face New Hurdles: FTC Issues Broad “Click-to-Cancel” Rule Imposing Nationwide Requirements
FTC Issues Final Rule Banning Fake and Misleading Consumer Reviews and Testimonials
On August 14, 2024, the Federal Trade Commission (FTC) issued a final rule that prohibits publishing or trading in fake or misleading consumer reviews and testimonials, or engaging in other related deceptive promotional tactics. Notably, under the FTC’s new rule, the commission will be authorized to seek civil penalties against violators.Continue Reading FTC Issues Final Rule Banning Fake and Misleading Consumer Reviews and Testimonials
“Chevron is overruled”: How Loper Bright Will Change the Regulatory Law Landscape
In a decision with far-ranging implications for federal administrative law, the United States Supreme Court issued its long-awaited ruling in Loper Bright Enterprises v. Raimondo (Loper Bright).1 The Supreme Court’s six-Justice majority held that the Administrative Procedure Act (APA) requires courts interpreting agency regulations to determine independently whether the agencies have acted within their statutory authority, even where the statute at issue is ambiguous. In so holding, the Court overruled its 1984 decision in Chevron USA v. Natural Resources Defense Council, which for the last four decades had governed thousands of cases involving federal agency interpretations of ambiguous laws.Continue Reading “Chevron is overruled”: How Loper Bright Will Change the Regulatory Law Landscape
State Social Media Law Patchwork Emerging: Florida Passes Law to Restrict Minors’ Use of Online Services
On March 25, 2024, Governor Ron DeSantis signed Florida’s HB 3. The law requires that social media platforms prohibit users under 14 years old from creating accounts and requires these platforms to obtain parental consent for account registrants who are 14 or 15 years old. The law also imposes age verification requirements for online services that knowingly distribute a significant amount of “harmful” content.Continue Reading State Social Media Law Patchwork Emerging: Florida Passes Law to Restrict Minors’ Use of Online Services
Into the Final Stretch: Six Gatekeepers Confirmed Under the EU’s Digital Markets Acts
On September 6, 2023, the European Commission (EC) returned from its summer break with full force and announced the designation of six tech companies as so-called “gatekeepers” under the EU’s Digital Markets Act (DMA) and…
Continue Reading Into the Final Stretch: Six Gatekeepers Confirmed Under the EU’s Digital Markets Acts