On October 12, 2022, the EU Digital Markets Act (DMA) was published in the Official Journal of the European Union (see here), giving clarity as to when the new rules will apply. The DMA will enter into force on November 1, 2022, and it will become fully applicable in May 2023. At that point, the gatekeeper designation process will start, and once designated, gatekeepers will have six months to comply with the DMA. This means that the DMA will only be fully enforceable against companies in spring 2024, likely around March.
Continue Reading Formal Publication of the DMA and Timelines for Compliance
President Biden Signs Executive Order to Implement the New EU-U.S. Data Privacy Framework
On October 7, 2022, President Biden signed an Executive Order (Order) on Enhancing Safeguards for United States Signals Intelligence Activities. This marks the latest step towards the new EU-U.S. Data Privacy Framework (Framework), a replacement…
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European Commission Proposes New EU Cybersecurity Rules for Software and Hardware Products
On September 15, 2022, the European Commission (EC) published a Proposal for a Cyber Resilience Act (CRA Proposal) that sets out new rules in the European Union (EU) for software and hardware products and their remote data processing solutions. The CRA Proposal introduces mandatory cybersecurity-related requirements and reporting obligations, including about product vulnerabilities, for manufacturers, importers, and distributors of such products. The potential sanctions include product withdrawal from the EU market and fines of up to EUR 15 million or 2.5 percent of total worldwide annual turnover for the preceding year.
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Gig Economy, Dark Patterns, and Impersonation Scams: FTC Signals Priorities in Open Commission Meeting
On September 15, 2022, the Federal Trade Commission (FTC) held an open Commission meeting that covered three agenda items: 1) a rulemaking on impersonation scams, 2) a policy statement on enforcement related to gig work, and 3) a staff report on dark patterns. While items (1) and (3) moved forward with a bipartisan 5-0 vote, the policy statement on the gig economy was adopted with a 3-2 vote along party lines. This alert provides some insight into the implications for future FTC activity in these areas.
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California Legislature Passes Far-Reaching Online Privacy and Content Regulation Bill for Minors
On August 30, 2022, the California legislature passed the California Age-Appropriate Design Code Act (the Act). Modeled after the UK’s Age-Appropriate Design Code, California’s act drastically changes the landscape of online privacy and content availability for minors in California. The Act goes beyond the current federal protections of the Children’s Online Privacy Protection Act (COPPA) and could impose onerous new requirements on companies that were and were not previously covered by COPPA. These requirements include, among other things, estimating the ages of minors using the company’s online services; conducting detailed Data Protection Impact Assessments (DPIAs) for new and existing products; significantly restricting the collection, use, and sharing of minors’ personal information; and configuring default privacy settings to a “high level of privacy.” If the bill is signed into law by Governor Newsom, the Act would come into effect July 1, 2024.
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California Attorney General Settles First-Ever CCPA Enforcement Action
On August 24, 2022, the California Attorney General (AG) announced the entry of a final judgment to resolve claims that makeup retailer Sephora violated the California Consumer Privacy Act (CCPA). Notably, this is the California AG’s first enforcement action resulting in a fine and settlement under the CCPA. The California AG alleged that Sephora violated the CCPA by failing to disclose that it was selling the personal information of California consumers through the use of third-party website advertising and analytics tools, failing to provide a “Do Not Sell My Personal Information” link for consumers to opt out of those sales, and failing to honor Global Privacy Control (GPC) signals as a means of opting out. As part of the relief, Sephora was ordered to pay a $1.2 million penalty and, among other things, implement a monitoring and reporting program to demonstrate its ongoing compliance with the CCPA.
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