Cybercriminals are known to attack networks and individuals at inopportune times of crisis—and the coronavirus pandemic unfortunately presents just such an opportunity as millions are accessing corporate networks and databases from home. This past weekend New Jersey and Connecticut joined the growing list of jurisdictions (e.g., California, Delaware, Illinois, Louisiana, Ohio, and New York) to issue orders effectively requiring non-essential workers to avoid the workplace, and in some cases, to shelter-in-place. READ MORE
On March 10, Orrick lawyers Shannon Yavorsky, Rebecca Harlow, Brett Cooper and Julie Totten recorded a discussion about COVID-19 operational issues associated with managing employees and businesses, including covering the topic of cyber vulnerability. The conversation shares insights into how COVID-19 is creating increased cybersecurity and privacy risks as companies prepare for the spread of the virus and are forced to adapt to a new way of doing business. This video is a segment from a one-hour CLE program entitled “The Early Legal Impact of COVID-19.” To view our video and the full length CLE click here. READ MORE
On January 30, 2020, the U.S. Department of Defense (“DoD”) released Version 1.0 of its Cybersecurity Maturity Model Certification (“CMMC”) framework (CMMC overview here; CMMC Version 1.0 and appendices here). By 2026, DoD plans to require CMMC certification for all defense contracts. For companies looking to play a role – any role – in the defense industry supply chain, now is the time to develop, assess, and augment cybersecurity practices.
The possibility of a cybersecurity incident—and ensuing litigation—is a fact of life for almost every business. Even companies that do not process or handle consumer information collect personal information about their employees that can be targeted by hackers or phishing scams or even inadvertently disclosed, exposing the company to potential liability.
While eliminating cybersecurity litigation risk entirely likely is not feasible, recent cases do highlight some steps that companies seeking to reduce potential exposure to cybersecurity litigation can take:
(1) Recognize that pre-incident statements about the company’s cybersecurity measures can be used to sustain deception-related claims.
(2) Assess the “reasonableness” of your cybersecurity, despite the difficulty of doing so.
(3) Pay attention to how you structure cybersecurity initiatives to protect related documents and communications based on the attorney-client privilege and work product protection.
(4) Recognize that your statements about a cybersecurity incident may be relied on by courts to sustain plaintiffs’ claims.
(5) Consider arbitration clauses, but do so cautiously.
(6) Consider opportunities to contractually allocate or disclaim liability. READ MORE
On February 7 and again on February 10, 2020, the California Attorney General Xavier Becerra released an updated draft of proposed regulations pursuant to the California Consumer Privacy Act of 2018 (“CCPA”). The updated drafts feature significant changes, clarifications and reversals of policy from the original proposal.
The updated draft regulations—available here (clean) and here (redline to the original October 2019 Draft)—reflect input gathered during the public comment period and series of public hearings which concluded on December 6, 2019. The first draft of the proposed regulations, the public comments and the transcripts and audio of the public hearings are available on the Attorney General’s CCPA webpage. The Attorney General also updated the online cache of documents and other information relied upon in preparing the revised draft regulations here.
Earlier this month, Andrew Smith, the FTC’s Director of the Bureau of Consumer Protection, announced that the Commission had made “three major changes” to its data security orders. Citing recent hearings at the FTC, as well as the Commission’s defeat in the closely watched LabMD case, Director Smith highlighted three key takeaways from seven consent orders announced against “an array of diverse companies.”
Happy New Year! At long last, the California Consumer Privacy Act of 2018 (“CCPA”) went into effect yesterday, January 1, 2020. For those who have not yet heard, the CCPA establishes a comprehensive legal framework to govern the collection and use of personal information, both online and offline, and provides unprecedented privacy rights to California consumers, in effect becoming the de facto national standard for U.S. privacy law. The law introduces new legal risks and considerations for companies that collect information from California consumers, due to the law’s expansive scope, broad definition of personal information, increased disclosure obligations, enhanced consumer rights, potential for statutory fines and, in the event of a security incident, the potential for consumer class action litigation. READ MORE
Since the first enforcement actions have been initiated, some with significant fines, many companies may find themselves somewhat at a loss as they may not fully know how to assess the risks involved and how to react should an enforcement action be initiated against them. Here we will give a high-level overview on risks and strategies in enforcement actions. READ MORE
With the January 1, 2020 effective date of the California Consumer Privacy Act (the “CCPA”) rapidly approaching, all eyes have been on the California legislature’s consideration of a robust suite of amendments that would clarify ambiguities and address discrepancies underlying the prominent privacy statute. On October 11, 2019, six CCPA amendments were signed into law by the California Governor, as well as an amendment to the state’s breach notification statute. The rest of the CCPA amendments have either failed or will have to wait until next year for further consideration.
On October 10, 2019, the California Attorney General added to the complexity of the California Consumer Privacy Act of 2018 (“CCPA”) by releasing long-awaited proposed regulations that provide guidance on various elements of the CCPA. The text of the proposed regulations is available here and the California Attorney General has made other documents and information relating to the proposed regulations available here. The comment period for the proposed regulations will close on December 6, 2019. Interested parties may review and provide written comments addressing the proposed regulations prior to that date or attend one of four scheduled public hearings on the proposed regulations to be held on December 2-5, 2019. READ MORE