Privacy & Information Security Law Blog

On May 25, 2022, Twitter reached a proposed $150 million settlement with the Department of Justice (“DOJ”) and the Federal Trade Commission to resolve allegations that the company deceptively used nonpublic user contact information obtained for account security purposes to serve targeted ads to Twitter users. In a complaint filed in federal court, the government alleged that Twitter violated both the FTC Act and a 2011 FTC Order by misrepresenting the extent to which the company maintained and protected users’ nonpublic contact information. The proposed settlement would require Twitter to pay $150 million in civil penalties and implement a comprehensive privacy and information security program “with extensive procedures to safeguard user information and assess internal and external data privacy risks.”

As reported in the Hunton Employment & Labor Perspectives Blog:

Assembly Bill 1651, or the Workplace Technology Accountability Act, a new bill proposed by California Assembly Member Ash Kalra, would regulate employers and their vendors regarding the use of employee data. Under the bill, data is defined as “any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular worker, regardless of how the information is collected, inferred, or obtained.”  Examples of data include personal identity information; biometric information; health, medical, lifestyle, and wellness information; any data related to workplace activities; and online information. The bill confers certain data rights on employees, including the right to access and correct their data. 

On May 4-6, 2022, the California Privacy Protection Agency (“CPPA”) held via video conference several public pre-rulemaking stakeholder sessions regarding the California Privacy Rights Act (“CPRA”). During the sessions, stakeholders ranging from privacy and cybersecurity experts to trade associations and California small business owners provided verbal comments, insights and suggestions to the CPPA as it develops the forthcoming CPRA regulations. The sessions focused on a number of issues, including automated decision-making, data minimization and purpose limitation, dark patterns, consumers’ rights (e.g., opt-out rights, limitation on the use of sensitive personal information), and cybersecurity audits and risk assessments. Comments and positions taken amongst the stakeholders varied. Some of the positions taken by stakeholders are summarized below:

On May 19, 2022, the Federal Trade Commission will hold a virtual open meeting. The meeting’s tentative agenda includes a vote by the FTC on a policy statement prioritizing the enforcement of the Children’s Online Privacy Protection Act (“COPPA”) as it applies to the use of education technology. In response to the expanded use of education technology during the COVID-19 pandemic, the policy statement clarifies that parents and schools must not be required to sign up for surveillance as a condition of access to tools needed to learn. Members of the public who would like to ...

On May 10, 2022, as part of the Queen’s Speech, the UK government announced its intention to introduce a Data Reform Bill (the “Bill”). The UK government’s background and briefing notes to the Queen’s Speech state that the purpose of the Bill is to “take advantage of the benefits of Brexit to create a world class data rights regime…that reduces burdens on businesses, boosts the economy, helps scientists to innovate and improves the lives of people in the UK.”

On May 10, 2022, Connecticut Governor Ned Lamont signed An Act Concerning Personal Data Privacy and Online Monitoring, after the law was previously passed by the Connecticut General Assembly in April. Connecticut is now the fifth state to enact a consumer privacy law.

In April 2022, two states enacted insurance data security legislation based on the National Association of Insurance Commissioners (“NAIC”) Insurance Data Security Model Law (MDL-668). Kentucky Governor Andy Beshear signed HB 474 into law on April 8, 2022, and Maryland Governor Larry Hogan signed SB 207 into law on April 21, 2022. The new laws establish data security obligations for insurance carriers and generally require carriers to take the following actions, subject to certain exemptions:

On April 28, 2022, the Federal Trade Commission published a Notice of Proposed Rulemaking (“NPRM”) and an Advance Notice of Proposed Rulemaking (“ANPRM”), proposing several updates to the Telemarketing Sale Rules (“TSR”).

On April 23, 2022, the European Commission announced that the European Parliament and EU Member States had reached consensus on the Digital Services Act (“DSA”), which establishes accountability standards for online platforms regarding illegal and harmful content.

On April 28, 2022, India issued new guidance relating to “information security practices, procedure, prevention, response and reporting of cyber incidents for Safe & Trusted Internet.” Notably, the guidance requires “service providers, intermediary, data centre, body corporate and Government organizations” to report cyber incidents to India's Computer Emergency Response Team (“CERT-In”) within six hours of noticing such incidents or being notified about such incidents. Before this guidance, notification of a cyber incident was required "within a reasonable time” after occurrence or discovery.

On April 5, 2022, North Carolina became the first state in the U.S. to prohibit state agencies and local government entities from paying a ransom following a ransomware attack.

North Carolina’s new law, which was passed as part of the state’s 2021-2022 budget appropriations, prohibits government entities from paying a ransom to an attacker who has encrypted their IT systems and subsequently offers to decrypt that data in exchange for payment. The law prohibits government entities from even communicating with the attacker, instead directing them to report the ransomware attack to the North Carolina Department of Information Technology in accordance with G.S. 143B‑1379.