We expect national and international privacy regulators to take a pragmatic and reasonable approach to helping organisations navigate data protection compliance during the current COVID-19 crisis. This week, both the European Data Protection Supervisor (the “EDPS”) and the UK’s Information Commissioner’s Office (the “ICO”) have shown that expected pragmatism. READ MORE
The Federal Trade Commission (“FTC”) plans to aggressively police companies that use deceptive marketing to take advantage of consumers’ fears relating to the COVID-19 pandemic. The FTC is focused on a broad range of potential deceptive practices, including unapproved or unsubstantiated health claims, work-at-home schemes, finance schemes, and misrepresentations as to the current availability of in-demand products, such as cleaning, household, and health or medical supplies. The FTC has already issued warning letters to seven sellers of unapproved and misbranded products who claimed that their products could treat or prevent the coronavirus, and additional warning letters or enforcement actions are likely to follow as the pandemic progresses and economic uncertainty increases. READ MORE
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 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.
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.
The EDPB’s new Guidelines on Article 6(1)(b) may severely limit e-commerce business’ ability to enhance data processing by unilaterally defining contractual services.
On October 8, 2019, the European Data Protection Board (“EDPB”) released the “Guidelines 2/2019 on the processing of personal data under Article 6(1)(b) GDPR in the context of the provision of online services to data subjects” (the “Guidelines”) after public consultation. The text of the Guidelines is available here. Largely in line with previous guidance, the EDPB takes the view that companies cannot expand legal justifications for data processing operations based on broader definitions of their services. The legal justification of a processing for performing a contract does not cover processing operations, which, reasonably, the individuals would not expect when entering into the contract. Businesses should thus carefully review the legal justifications for the processing operations and be prepared to consider limitations on certain data processing should individuals object. READ MORE
In an increasing trend, the Federal Trade Commission (FTC) joined other federal regulators seeking to hold individuals – not just companies – liable in enforcement proceedings. The most recent target was San Francisco-based UrthBox, Inc. and its principal, Behnam Behrouzi. Specifically, Urthbox and Behrouzi agreed to settle FTC allegations that UrthBox engaged in unfair or deceptive acts or practices by: (1) failing to adequately disclose key terms of its “free trial” automatic renewal programs, and (2) misrepresenting that customer reviews were independent when, in fact, UrthBox provided customers with free products and other incentives to post positive reviews online.
Today, Orrick announced the launch of our automated CCPA Readiness Assessment Tool which helps businesses globally determine whether they are covered by the California Consumer Privacy Act (CCPA) and, if yes, their readiness to comply with the new law that is revolutionizing the United States privacy landscape. This free tool is available to all organizations and takes 10-30 minutes to complete. It segments the CCPA into five workable themes and guides users through a series of dynamic questions relating to each theme. Upon completion of the questionnaire, the tool provides a free and comprehensive readiness assessment tailored to the business’s unique positioning and individual needs.
On January 21, 2019, the French data protection supervisory authority (“CNIL”) fined Google €50 million (approximately $57 million) for violating the European General Data Protection Regulation (“GDPR”). The fine penalizes Google for failing to comply with the GDPR’s transparency and notice requirements, and for failing to properly obtain consent from users for ads personalization. This is the largest GDPR fine imposed to date and the first action against a major global tech player. The CNIL’s decision sends an important message to companies that tough enforcement actions are not just a theoretical threat. Companies should look closer at data protection compliance and particularly work on their notices and consent forms. READ MORE
This past September Governor Brown signed into law Senate Bill 327, which is the first state law designed to regulate the security features of Internet of Things (IoT) devices. The bill sets minimum security requirements for connected device manufacturers, and provides for enforcement by the California Attorney General. The law will come into effect on January 1, 2020, provided that the state legislature passes Assembly Bill 1906, which is identical to Senate Bill 327. READ MORE