Posts from January 2017.
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On January 31, 2017, the Times of London reported that UK Prime Minister Theresa May plans to invoke Article 50 of the Treaty on European Union on March 9, 2017, meaning that formal Brexit negotiations with the EU could begin thereafter. This coincides with a two-day European Council summit in Malta which the leaders of all 28 EU Member States will be attending. The report in the Times of London states that the government informed the House of Lords yesterday that it intends to secure the approval of the European Union (Notification of Withdrawal) Bill (the “Bill”)—which would give the Prime Minister the legislative power to trigger Article 50—on March 7, 2017, just two days before the summit.

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On January 25, 2017, President Trump issued an Executive Order entitled “Enhancing Public Safety in the Interior of the United States.” While the Order is primarily focused on the enforcement of immigration laws in the U.S., Section 14 declares that “Agencies shall, to the extent consistent with applicable law, ensure that their privacy policies exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information.” This provision has sparked a firestorm of controversy in the international privacy community, raising questions regarding the Order’s impact on the Privacy Shield framework, which facilitates lawful transfers of personal data from the EU to the U.S. While political ramifications are certainly plausible from an EU-U.S. perspective, absent further action from the Trump Administration, Section 14 of the Order should not impact the legal viability of the Privacy Shield framework.

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On January 25, 2017, the Centre for Information Policy Leadership (“CIPL”) at Hunton & Williams LLP submitted formal comments to the Article 29 Working Party’s (“Working Party’s”) Guidelines on Data Protection Officers (DPOs) (“DPO Guidelines”) that were adopted on December 13, 2016. CIPL’s comments follow its November 2016 white paper on Ensuring the Effectiveness and Strategic Role of the Data Protection Officer under the General Data Protection Regulation, which CIPL submitted as formal initial input to the Working Party’s development of DPO implementation guidance under the EU General Data Protection Regulation (“GDPR”).

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On January 23, 2017, the FTC released a Staff Report (the “Report”) on cross-device tracking technology that can link multiple Internet-connected devices to the same person and track that person’s activity across those devices. The Report follows a November 2015 workshop on the same subject and is based on information and comments gathered during that workshop.

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On January 18, 2017, the U.S. Department of Health and Human Services’ Office for Civil Rights (“OCR”) entered into a resolution agreement with MAPFRE Life Insurance Company of Puerto Rico (“MAPFRE”) relating to a breach of protected health information (“PHI”) contained on a portable storage device. This is the second enforcement action taken by OCR in 2017, following the action taken against Presence Health earlier this month for failing to make timely breach notifications.

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On January 17, 2017, the International Trade Administration (“ITA”) announced that South Korea formally submitted its intent to join the APEC Cross-Border Privacy Rules (“CBPR”) system. South Korea would be the fifth APEC economy to join the system, joining the United States, Mexico, Canada and Japan.

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On January 19, 2017, the North American Electric Reliability Corporation (“NERC”) released a draft Reliability Standard CIP-013-1 – Cyber Security – Supply Chain Risk Management (the “Proposed Standard”). The Proposed Standard addresses directives of the Federal Energy Regulatory Commission (“FERC”) in Order No. 829 to develop a new or modified reliability standard to address “supply chain risk management for industrial control system hardware, software, and computing and networking services associated with bulk electric system operations.” 

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On January 24, 2017, the UK Supreme Court handed down its judgment in the case of R (on the application of Miller and another) (Respondents) v. Secretary of State for Exiting the European Union (Appellant) [2017] UKSC 5. The case concerned the process to be followed to effect the UK’s withdrawal from the European Union and, in particular, whether the UK government may commence the UK’s withdrawal using executive powers, or whether Parliamentary approval is required. The Supreme Court held, by majority, that the UK government cannot commence the UK’s withdrawal from the EU without the approval of Parliament.

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On January 18, 2017, the Department of Homeland Security (“DHS”) issued an updated National Cyber Incident Response Plan (the “Plan”) as directed by Obama’s Presidential Policy Directive 41, issued this past summer, and the National Cybersecurity Protection Act of 2014.

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On January 16, 2017, the Article 29 Working Party (“Working Party”) published further information about its Action Plan for 2017, which sets forth the Working Party’s priorities and objectives in the context of implementation of the EU General Data Protection Regulation (“GDPR”) for the year ahead. The Action Plan closely follows earlier GDPR guidance relating to Data Portability, the appointment of Data Protection Officers and the concept of the Lead Supervisory Authority, which were published together by the Working Party on December 13, 2016.

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On January 9, 2017, Representatives Kevin Yoder (R-KS) and Jared Polis (D-CO) reintroduced the Email Privacy Act, which would amend the Electronic Communications Privacy Act (“ECPA”) of 1986. In particular, the legislation would require government entities to obtain a warrant, based on probable cause, before accessing the content of any emails or electronic communications stored with third-party service providers, regardless of how long the communications have been held in electronic storage by such providers. Although ECPA currently requires law enforcement agencies to obtain a warrant to search the contents of electronic communications held by service providers that are less than 180 days old, communications that are more than 180 days old can be obtained with a subpoena.

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On January 10, 2017, the National Institute of Standards and Technology (“NIST”) released proposed updates to the Framework for Improving Critical Infrastructure Cybersecurity (the “Cybersecurity Framework”). The proposed updates, which are found in Version 1.1 of the Cybersecurity Framework, are derived from feedback received by NIST regarding the first version, including from responses to a December 2015 request for information and discussions at a workshop held in April 2016.

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Last month, the Standing Committee of the National People’s Congress of China published a full draft of the E-commerce Law (the “Draft”) and is giving the general public an opportunity to comment on the draft through January 26, 2017.

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Last month, the Federal Energy Regulatory Commission (“FERC”) published its final Regulations Implementing FAST Act Section 61003-Critical Electric Infrastructure Security and Amending Critical Energy Infrastructure Information (the “CEII Regulations”). The CEII Regulations, which differ little from the notice of proposed rulemaking that FERC issued in June 2016, were approved unanimously on November 17, 2016, by FERC’s three sitting Commissioners (recent retirements have left the two other FERC seats vacant).

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On January 7, 2017, the U.S. Department of Health and Human Services’ Office for Civil Rights (“OCR”) entered into a resolution agreement with Presence Health stemming from the entity’s failure to notify affected individuals, the media and OCR within 60 days of discovering a breach. This marks the first OCR settlement of 2017 and the first enforcement action relating to untimely breach reporting by a HIPAA covered entity.

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On January 10, 2017, the European Commission published a communication addressed to the European Parliament and European Council on Exchanging and Protecting Personal Data in a Globalized World (the “Communication”). The Communication aims to facilitate commercial data flows and foster law enforcement cooperation. In the Communication, the European Commission states that it will:

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On January 11, 2017, the Swiss Federal Data Protection and Information Commissioner announced that it has reached an agreement with the U.S. Department of Commerce on a new Swiss-U.S. Privacy Shield framework (the “Swiss Privacy Shield”), which will allow companies to legally transfer Swiss personal data to the U.S. The Swiss Privacy Shield will replace the U.S.-Swiss Safe Harbor framework, and according to the Swiss government’s announcement, will “apply the same conditions as the European Union, which set up a comparable system with the U.S. last summer,” referring ...

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On January 10, 2017, the European Commission announced the final elements of its long-awaited “digital single market” strategy for Europe. The announcement includes two new proposed EU regulations as well as a European Commission Communication, as described below.

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On January 3, 2017, Bloomberg Law: Privacy and Data Security reported that Chilean legislators are soon expected to consider a new data protection law (the “Bill”) which would impose new privacy compliance standards and certain enforcement provisions on companies doing business in Chile. 

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On January 4, 2017, the National Institute of Standards and Technology (“NIST”) announced the final release of NISTIR 8062, An Introduction to Privacy Engineering and Risk Management in Federal Systems. NISTIR 8062 describes the concept of applying systems engineering practices to privacy and sets forth a model for conducting privacy risk assessments on federal systems. According to the NIST, NISTIR 8062 “hardens the way we treat privacy, moving us one step closer to making privacy more science than art.”

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On January 3, 2017, the Office of Management and Budget (“OMB”) issued a memorandum (the “Breach Memorandum”) advising federal agencies on how to prepare for and respond to a breach of personally identifiable information (“PII”). The Breach Memorandum, which is intended for each agency’s Senior Agency Official for Privacy (“SAOP”), updates OMB’s breach notification policies and guidelines in accordance with the Federal Information Security Modernization Act of 2014 (“FISMA”).

Time 2 Minute Read

On December 21, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that it had fined 12 financial institutions a total of $14.4 million for improper storage of electronic broker-dealer and customer records. Federal securities law and FINRA rules require that business-related electronic records be kept in “write once, read many” (“WORM”) format, which prevents alteration or destruction. FINRA found that the 12 sanctioned firms had failed to store such records in WORM format, in many cases for extended periods of time.

Time 2 Minute Read

On December 28, 2016, the New York State Department of Financial Services (“DFS”) announced an updated version of its cybersecurity regulation for financial institutions (the “Updated Regulation”). The Updated Regulation will become effective on March 1, 2017.

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