Privacy & Information Security Law Blog

On September 12, 2022, the Cybersecurity and Infrastructure Security Agency (“CISA”) released a Request for Information (“RFI”) seeking public input regarding the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”). The public comment period will close on November 14th, 2022. The RFI provides a “non-exhaustive” list of topics on which CISA seeks public input, including:

On September 21, 2022, the Federal Communications Commission (“FCC”) announced a proposed combined fine of $3.4 million against Sinclair Broadcast Group, Nexstar Media Group and 19 other broadcast television licensees for violations of rules limiting commercial matter in children's television programming.

On September 26, 2022, the UK Information Commissioner’s Office (“ICO”) confirmed in a statement that it issued TikTok Inc. and TikTok Information Technologies UK Limited (together, “TikTok”) a notice of intent to potentially impose a £27 million fine for failing to protect children’s privacy. This notice of intent follows an investigation by the ICO finding that TikTok may have breached UK data protection law between May 2018 and July 2020 by failing to protect children’s privacy when using the TikTok platform.

On September 21, 2022, the Federal Trade Commission announced the agenda for its “Protecting Kids from Stealth Advertising in Digital Media” virtual event to be held on October 19, 2022. The event will cover how children recognize and understand digital advertising content; the current advertising landscape’s impact on kids, including potential harms stemming from an inability to distinguish advertising from other content; and an assessment of the current legal regime’s protection of children from potential harms, and whether additional regulatory, self-regulatory, educational and technological tools may provide additional protection.

On September 15, 2022, the Federal Trade Commission released a report analyzing “dark patterns,” or “design practices that trick or manipulate users into making choices they would not otherwise have made and that may cause harm.” The report, titled “Bringing Dark Patterns to Light,” highlights dark patterns used across industries and different contexts, such as e-commerce, cookie consent banners, children’s apps and subscription sales. The report identifies four common types of dark patterns and provides examples of each:

On September 7, 2022, the Children’s Advertising Review Unit (“CARU”) of BBB National Programs announced its finding that Tilting Point Media, LLC (“Tilting Point”), owner and operator of the SpongeBob: Krusty Cook-Off app (the “App”), violated the Children’s Online Privacy Protection Act (“COPPA”) and CARU’s Self-Regulatory Guidelines for Advertising and for Children’s Online Privacy Protection (“CARU’s Guidelines”). CARU has recommended a variety of corrective actions with respect to Tilting Point’s advertising and privacy practices.

On September 9, 2022, the National Highway Traffic Safety Administration (NHTSA) announced its publication of final Cybersecurity Best Practices for the Safety of Modern Vehicles (the “2022 Best Practices”). The 2022 Best Practices reflect the agency’s final, non-binding vehicle cybersecurity guidance following its release of draft guidance in January 2021. The 2022 Best Practices also is an update to NHTSA’s first cybersecurity best practices document, which was issued in 2016. 

On September 21, 2022, Denmark’s data protection authority Datatilsynet (“Danish DPA”) announced its guidance that Google Analytics, Google’s audience measurement tool, is not compliant with the EU General Data Protection Regulation (“GDPR”), as the tool transfers personal data to the United States which, following Schrems II, does not offer an adequate level of data protection.

On September 20, 2022, Indonesia’s parliament ratified the Personal Data Protection Act (the “Act”). The Act is the first comprehensive data protection law to be enacted in Indonesia and will come into effect on a date set by the Minister of State Secretariat. Organizations subject to the Act will have two years to come into compliance with the Act’s requirements.

On August 23, 2022, the U.S. Department of Health & Human Services, Office for Civil Rights (“HHS”) announced that it had settled a case involving the disposal of physical protected health information (“PHI”).

On September 20, 2022, the U.S. Securities and Exchange Commission announced that Morgan Stanley Smith Barney agreed to pay a $35 million fine for the firm’s alleged failure to adequately protect the personal information of approximately 15 million customers. Morgan Stanley settled the SEC’s claims without agreeing to or denying the agency’s findings. 

On August 29, 2022, the Federal Trade Commission announced a civil action against digital marketing data broker Kochava Inc. for “selling geolocation data from hundreds of millions of mobile devices that can be used to trace the movements of individuals to and from sensitive locations.” The lawsuit seeks a permanent injunction to stop Kochava’s sale of geolocation data and to require the company to delete the geolocation data it has collected.  

On September 15, 2022, California Governor Gavin Newsom signed into law the California Age-Appropriate Design Code Act (the “Act”). The Act, which takes effect July 1, 2024, places new legal obligations on companies with respect to online products and services that are “likely to be accessed by children” under the age of 18.

On August 16, 2022, the Securities and Exchange Commission (“SEC”) charged 18 individuals and entities in relation to their involvement in a fraudulent hacking scheme. The scheme targeted and hacked 31 online retail brokerage accounts and forced them to make large purchases of certain stocks from two public microcap companies: Lotus Bio-Technology Development Corp. (“LBTD”) and Good Gaming, Inc. (“GMER”). The owners of the accounts that purchased the shares did not authorize the purchases. Both LBTD and GMER already were controlled in large blocks by fraudsters who repeatedly took steps to conceal their ownership. In doing so, the fraudsters artificially inflated the trading price and volume of the stocks and then sold the shares they had acquired at the inflated prices, generating approximately $1.3 million in proceeds and creating substantial profits.

On September 6, 2022, the California legislature presented Assembly Bill 2392 to Governor Gavin Newsom. AB-2392, which has not yet been signed by Governor Newsom, would allow Internet-connected device manufacturers to satisfy existing device labeling requirements by complying with National Institute of Standards and Technology (“NIST”) standards for consumer Internet of Things (“IoT”) products.

On September 8, 2022, the Federal Trade Commission hosted a virtual public forum on its Advanced Notice of Proposed Rulemaking (“ANPR”) concerning “commercial surveillance and lax data security.” The forum featured remarks from FTC Chair Lina Kahn, Commissioner Rebecca Kelly Slaughter and Commissioner Alvaro Bedoya, as well as panels with industry leaders and consumer advocates.

On September 5, 2022, the Irish Data Protection Commissioner (the “DPC”) imposed a €405,000,000 fine on Instagram (a Meta-owned social media platform) for violations of the EU General Data Protection Regulation’s (“GDPR’s”) rules on the processing of children’s personal data.

On July 7, 2022, the Cyberspace Administration of China (the “CAC”) issued the Measures on Security Assessment on Cross-border Transfer (the “Measures”), which became effective on September 1, 2022, and provide a six-month grace period to the relevant data handlers. On August 31, 2022, the CAC issued the Guidelines on Application for Security Assessment on Cross-border Transfer (the “Guidelines”), which further clarify certain issues and provide specific application documents for security assessments (including templates of application forms for security assessment on cross-border transfer and self-assessments report for risks of cross-border transfer).

On July 26, 2022, the attorneys general of New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida and Washington D.C. announced an $8 million multistate settlement with Wawa Inc. that resolves the states’ investigation into a 2019 data breach that compromised approximately 34 million payment cards used by consumers at Wawa stores and fueling locations.