The Court of Justice of the European Union (CJEU) clarified in two judgments in the last month of 2023 (Deutsche Wohnen, ECLI:EU:C:2023:950 [DW] and Nacionalinis visuomenės sveikatos centras, ECLI:EU:C:2023:949 [NVSC]) the conditions under which data protection authorities across the EU may impose fines on companies for violations of the GDPR. Specifically, when those violations were committed either by unidentifiable employees at a company (DW) or by third parties (NVSC).
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Eye On Privacy
Timely Updates and Analysis on Privacy and Cybersecurity Issues
Latest from Eye On Privacy - Page 2
FTC Sends Stern Reminder to AI Companies
While the US does not have some specific AI-focused law a host of regulators have been providing their thoughts about AI. Noticeable traction on the topic began in 2020. With the explosion of ChatGPT in 2023, commentary (and scrutiny) has been picking up steam.
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Operator? I’d like to Report a Data Breach—The FCC’s Updated Data Breach Rule
After waiting 16 years for a call, the FCC is finally back on the line. Last month the FCC updated their 16-year-old data breach notification rule. The updated rule makes drastic changes to the previous FCC notification requirements. However, many will already be familiar with the new requirements as they merge those found in state data breach notification laws in to the FCC context. Regulators may have felt wired to make these change in light of the new SEC rules, about which we have also previously written, that went into effect last month. Regardless of their motives, the FCC…
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Current Status of US State Privacy Law Deluge: It’s 2024, Do You Know Where Your Privacy Program’s At?
As we begin the new year, many are wondering whether the growing list of US state privacy laws apply to them, and if so, what steps they should take to address them. For companies that gather information from consumers, especially those that offer loyalty programs, collect sensitive information, or have cybersecurity risks, these laws may be top of mind. Even for others, these may be laws that are of concern. As you prepare your new year’s resolutions -or how you will execute on them- having a centralized list of what the laws require might be helpful. So, a quick recap:…
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FTC Continues Focus on Data Brokers and Sensitive Information
The FTC is beginning 2024 with a bang. Just a few short days after announcing a settlement with lead-generation company Response Tree, the FTC has announced another decision. In this latest announcement, the FTC has described this as its first settlement with data broker over the sale of sensitive information. According to the FTC, X-Mode Social, and its successor company Outlogic, LLC, tracked and sold to third parties precise location information, which information could identify if people visited “sensitive” locations like medical or reproductive clinics or domestic abuse shelters. This allegation is similar to that the agency made last…
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Bookmark This!: Colorado Launches Universal Opt Out Mechanism List
In anticipation of July 1, 2024, requirements to allow consumers the ability to use “universal opt out mechanisms” in certain circumstances, Colorado has posted its “universal opt out shortlist.” The list is indeed short. Only one mechanism, the already-known global privacy control (GPC) is on it. The Colorado Attorney General has indicated that the list can be updated. And it may be in the coming months.
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FTC Reaches $7 Million Settlement Over Response Tree’s “Consent Farm” Sites
Continuing its focus on potential dark patterns, the FTC has reached a settlement with the lead generation company Response Tree LLC and its president over allegations that the company ran sites that tricked people into opting into receiving marketing calls. The FTC brought the case arguing that the company had violated both Section V of the FTC Act as well as the Telemarketing Sales Rule (or TSR, which implements TCFAPA).
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Closing Out 2023 with Utah’s Privacy Law
This year has been active on the state “comprehensive” privacy law front. Seven states passed new laws in 2023 (Delaware, Iowa, Indiana, Tennessee, Montana, Florida, and Oregon). These states joined California, Connecticut, Colorado, and Virginia with laws already in effect. Soon, Utah will join the “active” law list when its privacy law comes into effect on December 31.
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Data Broker Rulemaking in Texas and Oregon
Both Texas and Oregon recently adopted rules that will, among other things, implement a registry required by both states’ data broker laws. The Texas law went into effect September 1, 2023, and the Oregon law will go into effect January 1, 2024. Both are similar to laws in Vermont and California.
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California Releases Automated Decision Rules in Draft
The CPPA, the California regulatory body charged with enforcing CCPA, recently released draft regulations for use of automated decisionmaking technology. The draft comes under the law’s requirements for the agency to issue regulations on the topic. Under the law, automated decisionmaking technology is discussed in relation to profiling. Profiling is defined as “any form of automated processing of personal information” to analyze or predict people’s work performance, health, personal preferences, and the like. However, what constitutes “automated decisionmaking technology” is not defined.
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Connected Devices: Eyes on EU Data Act
The European Council recently approved a final version of the EU Data Act. The Act applies to manufacturers of connected devices. Among other things, it gives consumers certain rights about the information those devices collect. The Act is viewed as part of an overall data strategy by the EU, and complements both GDPR and the Data Governance Act.
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FTC Decision with Global Tel*Link Signals Expectations for Use of Testing Environments
The FTC recently announced a settlement with Global Tel*Link, a telecommunications company that contracts with prisons and jails to provide communication services to incarcerated individuals and their families. Those who use their services create accounts with the company and are required to provide not only usernames and passwords but also Social Security numbers and government ID numbers. The company also collects financial account information as well as names and addresses. The company included in its marketing materials promises about security, including that it was the “cornerstone of what we do.” The company also made promises about its security in RFPs…
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What Is the Privacy Impact of the White House AI Order for Businesses?
Biden’s sweeping AI Executive Order sought to have artificial intelligence used in accordance with eight underlying principles. The order, while directed to government agencies, will impact businesses as well. In particular, the order has privacy and cybersecurity impacts on companies’ use of artificial intelligence. Among other things, companies should keep in mind the following:…
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CNIL Fines Canal+ Over Marketing and Data Security Concerns
The French Data Protection Authority announced a €600,000 fine against Groupe Canal+ over concerns with the media company’s direct marketing activities. According to the CNIL, the company sent users email marketing without getting consent, in violation of both GDPR and French privacy law. In particular, the CNIL noted, the company sent marketing emails to individuals who had provided their personal information not to Canal+, but instead to one of its partners. When doing so, they were not told by the partner that the information would be share with -and used by- Canal+ for Canal+’s marketing activities. Canal+ should have ensured…
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Amended Kochava Complaint Gives Insight into FTC’s View of Harm from Data Profiles
The FTC’s second attempt to pursue the data broker, Kochava, continues to move forward. The amended complaint, which was just unsealed and thus available for the public to review, gives insight into the agency’s perspective on the harm that results when companies create profiles with sensitive information, and use that information to target ads to individuals. The amended complaint provides more detail about Kochava’s alleged practices; allegations the company strongly disagreed with. (Thus, why it sought -unsuccessfully- to have it sealed.)…
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Impact of FTC Safeguard Rules Amendment on Breach Notification Timing
The FTC recently amended the Safeguards Rule to make non-banking institutions such as mortgage brokers, motor vehicle dealers, and payday lenders notify the FTC as soon as possible, and no later than 30 days after discovery, of a security breach involving the information of at least 500 consumers. The FTC plans to provide an online form that will be used to report certain information, including the type of information involved in the security event and the number of consumers affected or potentially affected. The FTC’s Safeguards Rule also requires non-banks to develop, implement, and maintain a comprehensive security program to…
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