Privacy & Information Security Law Blog

Brazilian lawmakers, including José Eduardo Cardozo, the Minister of Justice of Brazil, and Ideli Salvatti, the Secretariat of Institutional Relations, held several consensus-building meetings with party leaders over the past two weeks to reach a voting agreement on the Marco Civil da Internet (“Marco Civil”), a draft bill introduced in the Brazilian Congress in 2011. The Marco Civil would establish Brazil’s first set of Internet regulations, including requirements regarding personal data protection and net neutrality.

On November 19, 2013, the Federal Trade Commission held a workshop in Washington, D.C. to discuss The Internet of Things: Privacy & Security in a Connected World. FTC Chair Edith Ramirez and FTC Senior Attorney Karen Jagielski provided the opening remarks. Chairwoman Ramirez raised three key issues for workshop participants to consider:

The Luxembourg data protection authority (Commission nationale pour la protection des donées, “CNPD”) has stated that it will not investigate complaints relating to the alleged involvement of Microsoft Luxembourg (“Microsoft”) and Skype Software S.a.r.l. and Skype Communications S.a.r.l. (collectively, “Skype”) in the PRISM surveillance program. The PRISM surveillance program involves the transfer of EU citizens’ data to the U.S. National Security Agency (the “NSA”).

On November 13, 2013, the Federal Trade Commission announced that it denied a proposal submitted by AssertID, Inc. for a mechanism to obtain verifiable parental consent in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013.

On November 13, 2013, Google entered into a $17 million settlement agreement with the attorneys general from 37 states and the District of Columbia related to allegations that the company bypassed users’ cookie-blocking settings on Apple’s Safari browser in 2011 and 2012. The settlement requires Google to refrain from bypassing cookie controls in the future and requires Google to maintain a page on its site informing users about cookies and how to manage them. Last year, Google agreed to a $22.5 million settlement with the Federal Trade Commission in connection with similar ...

On November 26, 2013, Kazakhstan’s new data privacy law, On Personal Data and Their Protection, will come into effect. The law was passed on May 21, 2013. Kazakhstan is the second country in Central Asia to enact a data privacy law, joining the Kyrgyz Republic, which passed the Law on Personal Data in 2008.

On November 2, 2013, Hunton & Williams partner Paul M. Tiao was featured on the Voice of America discussing the importance of the National Security Agency restoring trust among industry and foreign government allies. In the feature, “Next NSA Chief to Face Challenges, Change,” Tiao talked about some of the difficulties that will confront the NSA Director’s successor, and why government surveillance is likely to continue.

On October 25, 2013, the Standing Committee of the National People’s Congress of the People’s Republic of China passed an amendment to the P.R.C. Law on the Protection of Consumer Rights and Interests (the “Amendment”). The Amendment, which was adopted after three readings and will take effect on March 15, 2014, adds provisions designed to respond to the recent boom in online shopping and focuses on improving protections in the area of consumer rights and interests by:

On October 22, 2013, the Federal Trade Commission announced a proposed settlement with Aaron’s, Inc. (“Aaron’s”) stemming from allegations that it knowingly assisted its franchisees in spying on consumers. Specifically, the FTC alleged that Aaron’s facilitated its franchisees’ installation and use of software on computers rented to consumers that surreptitiously tracked consumers’ locations, took photographs of consumers in their homes, and recorded consumers’ keystrokes in order to capture login credentials for email, financial and social media accounts. The FTC had previously settled similar allegations against Aaron’s and several other companies.

On October 22, 2013, the National Institute of Standards and Technology (“NIST”) issued the Preliminary Cybersecurity Framework (the “Preliminary Framework”), as required under Section 7 of the Obama Administration’s February 2013 executive order, Improving Critical Infrastructure Cybersecurity (the “Executive Order”). The Preliminary Framework includes standards, procedures and processes for reducing cyber risks to critical infrastructure. It will be published in the Federal Register within a few days for public comment. Under the Executive Order, NIST is required to issue a final version of the Framework in February 2014. NIST is planning to host a public workshop on the Preliminary Framework in mid-November to give industry and other groups an opportunity to provide their views on this document.

On October 12, 2013, California Governor Jerry Brown vetoed an electronic communications privacy bill. The bill, SB 467, would have compelled law enforcement to obtain a search warrant before seeking to access any email or other electronic communication maintained by service providers. The bill went beyond the scope of the federal Electronic Communications Privacy Act, which obligates law enforcement to obtain search warrants only for electronic communications that are unopened or stored by service providers for fewer than 180 days. The California bill was very similar to a bill signed into law in Texas earlier in 2013 that required law enforcement agencies to obtain warrants before accessing customer electronic data held by email service providers.

On October 2, 2013, the Article 29 Working Party (the “Working Party”) issued a Working Document providing guidance on how to obtain consent for the use of cookies and similar technologies in compliance with EU legal requirements (“Working Document”).

On October 8, 2013, a Royal Decree was published completing the transposition of the EU Data Retention Directive 2006/24/EC (the “Data Retention Directive”) into Belgian law. The Royal Decree was adopted on September 19, 2013.

On October 2, 2013, the 86th Conference of the German Data Protection Commissioners concluded in Bremen. This biannual conference provides a private forum for the 16 German state data protection authorities (“DPAs”) and the Federal Commissioner for Data Protection and Freedom of Information, Peter Schaar, to share their views on current issues, discuss relevant cases and adopt Resolutions aimed at harmonizing how data protection law is applied across Germany.

On October 4, 2013, The Centre for Information Policy Leadership’s Senior Policy Advisor Fred Cate reported on the 35th International Conference of Data Protection and Privacy Commissioners which concluded on September 24 in Warsaw, Poland. The report indicates that four main issues dominated the Conference: (1) challenges presented by technologies such as mobile apps and online profiling, (2) multinational interoperability and enforcement, (3) pending EU data protection regulation and alternatives, and (4) repercussions of NSA surveillance activities.

On September 27, 2013, California Governor Jerry Brown signed into law a bill amending the California Online Privacy Protection Act (“CalOPPA”) to require website privacy notices to disclose how the site responds to “Do Not Track” signals, and whether third parties may collect personal information when a consumer uses the site. Although the changes to the law do not prohibit online behavioral advertising, this is the first law in the United States to impose disclosure requirements on website operators that track consumers’ online behavior.

On September 25, 2013, Senator Jay Rockefeller (D-WV), Chair of the Senate Committee on Commerce, Science and Transportation, expanded his investigation of the data broker industry by asking twelve popular health and personal finance websites to answer questions about their data collection and sharing practices.

On September 23 and 24, 2013, a declaration and eight resolutions were adopted by the closed session of the 35th International Conference of Data Protection and Privacy Commissioners and have been published on the conference website. This blog post provides an overview of the declaration and the most significant resolutions.

On September 26, 2013, the UK Information Commissioner’s Office (“ICO”) published new breach notification guidance (the “Guidance”), applicable to telecom operators, Internet service providers (“ISPs”) and other public electronic communications service (“ECS”) providers.

On September 23, 2013, California Governor Jerry Brown signed a bill that adds “Privacy Rights for California Minors in the Digital World” to the California Online Privacy Protection Act (“CalOPPA”). The new CalOPPA provisions prohibit online marketing or advertising certain products to anyone under age 18, and require website operators to honor requests made by minors who are registered users to remove content the minor posted on the site. In addition, operators must provide notice and instructions to minors explaining their rights regarding the removal of content they’ve posted.

Recent months have seen a significant increase in highly-publicized cyber attacks and cybersecurity incidents, including an August 2013 attack on The New York Times’ website that shut down the site twice in two weeks. Unsurprisingly, there also has been an upswing in the demand for, and underwriting of, cyber insurance. In a recent Law360 article, Takeaways from Recent Cyberattack on New York Times, Hunton & Williams Insurance Litigation & Counseling partner Lon Berk considers whether a hypothetical cyber insurance policy would have covered such a loss.

As reported in the Hunton Employment & Labor Perspectives Blog:

The U.S. District Court for the District of New Jersey recently ruled that non-public Facebook wall posts are protected under the Federal Stored Communications Act (the “SCA”) in Ehling v. Monmouth-Ocean Hospital Service Corp., No. 2:11-CV-3305 (WMJ) (D.N.J. Aug. 20, 2013). The plaintiff was a registered nurse and paramedic at Monmouth-Ocean Hospital Service Corp. (“MONOC”). She maintained a personal Facebook profile and was “Facebook friends” with many of her coworkers but none of the MONOC managers. She adjusted her privacy preferences so only her “Facebook friends” could view the messages she posted onto her Facebook wall. Unbeknownst to the plaintiff, a coworker who was also a “Facebook friend” took screenshots of the plaintiff’s wall posts and sent them to a MONOC manager. When the manager learned of a wall post in which the plaintiff criticized Washington, D.C. paramedics in their response to a museum shooting, MONOC temporarily suspended the plaintiff with pay and delivered a memo warning her that the wall post reflected a “deliberate disregard for patient safety.” The plaintiff subsequently filed suit alleging violations of the SCA, among other claims.

On September 9, 2013, the Federal Trade Commission announced that it is seeking public comment on another proposed mechanism (submitted by Imperium, LLC) to obtain verifiable parental consent in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013. This announcement follows on the heels of a similar recent announcement that the Commission is seeking public comment on a parental consent mechanism proposed by a different company.

On September 4, 2013, California state legislators passed an amendment to the state’s breach notification law. The bill, SB 46, would expand notification requirements to include security incidents involving the compromise of personal information that would permit access to an online or email account. Pursuant to SB 46, the definition of “personal information” contained in Sections 1798.29 and 1798.82 of California’s Civil Code would be amended to include “a user name or email address, in combination with a password or security question and answer that would permit access to an online account.” Notably, the compromise of these data elements alone  ̶  even when not in conjunction with an individual’s first name or first initial and last name  ̶  would trigger a notification obligation under the amended law. In addition, the bill does not limit the data elements that constitute “personal information” to those that would permit access to an individual’s financial account.

On August 8, 2013, the State Council of the People’s Republic of China released its “Opinions Regarding Facilitating Information Consumption and Boosting Domestic Demand” (Guofa [2013] No. 32, the “Opinions”). The Opinions provide guidelines for encouraging the development of the “consumption of information” in the next few years. “Consumption of information” is a recently-coined Chinese term that encompasses the demand for, and possession, processing and reproduction of, information.

On September 5, 2013, Pew Research Center released a report detailing the results of a new survey that questioned 792 Internet and smartphone users in the United States about their desire for anonymity and issues they have faced regarding privacy and security online. The report indicates that although most Internet users may wish to be anonymous online, they don’t believe complete anonymity is possible.

On August 29, 2013, the FTC announced that it had filed a complaint against LabMD, Inc. (“LabMD”) for failing to protect consumers’ personal data. According to the complaint, LabMD, which performs various laboratory tests for consumers, exposed the personal information of more than 9,000 consumers on a peer-to-peer (“P2P”) file-sharing network. Specifically, a LabMD spreadsheet that was found on the P2P network contained names, Social Security numbers, dates of birth, health insurance information and medical treatment codes. In another instance, identity thieves were able to obtain LabMD documents that contained the personal information of more than 500 consumers, including names, Social Security numbers and bank account information.

On August 26, 2013, the U.S. District Court for the Northern District of California approved a settlement with Facebook, Inc., related to the company’s alleged misappropriation of certain Facebook members’ personal information, such as names and profile pictures, that was then used in ads to promote products and services via Facebook’s “Sponsored Stories” program.

On August 22, 2013, Hunton & Williams partner Paul M. Tiao was featured on CNBC’s Fast Money discussing NASDAQ’s recent crash. In the feature, “Are markets ready for cyber threats?”, Tiao talked about the steps the financial services industry has taken to protect against significant cybersecurity incidents, including “putting in best-of-breed information security policies” and “working across the industry to share information in a way that many other industries are not.”

View the video coverage now.

On August 1, 2013, the United States District Court for the District of Minnesota denied a criminal defendant’s motion to suppress, holding that the defendant had no reasonable expectation of privacy in computer files he shared on a peer-to-peer network.

On August 15, 2013, the Federal Trade Commission announced that it is seeking public comment regarding a proposed mechanism to obtain verifiable parental consent in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013. The COPPA Rule requires operators of certain websites and online services to obtain a parent’s consent before collecting personal information online from a child under 13.

On August 6, 2013, the Obama Administration posted links on The White House Blog to reports from the Departments of Commerce, Homeland Security and Treasury containing recommendations on incentivizing companies to align their cybersecurity practices with the Cybersecurity Framework. These reports respond to the Administration’s February 2013 executive order entitled Improving Critical Infrastructure Cybersecurity (the “Executive Order”).

As reported by Bloomberg BNA, the Irish Office of the Data Protection Commissioner (“ODPC”) has stated that it will not investigate complaints relating to the alleged involvement of Facebook Ireland Inc. (“Facebook”) and Apple Distribution International (“Apple”) in the PRISM surveillance program.

On July 26, 2013, the Federal Trade Commission announced updates to its frequently asked questions regarding the Children’s Online Privacy Protection Act of 1998 (“COPPA”). The updated FAQs, which have replaced the June 2013 version on the FTC’s Business Center website, provide additional information in the sections addressing websites and online services directed to children and disclosure of information to third parties.

On July 16, 2013, the Ministry of Industry and Information Technology of the People’s Republic of China (the “MIIT”) issued a new rule entitled Provisions on the Registration of Real Identity Information of Telephone Users (the “Provisions”), which will take effect on September 1, 2013. The Provisions were issued pursuant to the Resolution of the Standing Committee of the National People’s Congress Relating to Strengthening the Protection of Information on the Internet (the “Resolution”) and the Telecommunications Regulations of the People’s Republic of China. In April 2013, the MIIT issued a draft of the Provisions and solicited public comment.

On July 25, 2013, the U.S. Department of Commerce’s National Telecommunications and Information Administration announced the release of the Short Form Notice Code of Conduct to Promote Transparency in Mobile App Practices, which was developed through the Privacy Multistakeholder Process: Mobile Application Transparency convened by the Department of Commerce. The voluntary Code of Conduct provides guidance regarding short-form notices about the collection and sharing of consumer information with third parties. Short-form notices that comply with the Code of Conduct generally must contain the following content:

On July 16, 2013, the Ministry of Industry and Information Technology of the People’s Republic of China (the “MIIT”) issued a new rule entitled Provisions on the Protection of Personal Information of Telecommunications and Internet Users (the “Provisions”). The Provisions, which will take effect on September 1, 2013, are intended to implement the general requirements set forth in last December’s Resolution of the Standing Committee of the National People’s Congress Relating to Strengthening the Protection of Information on the Internet (the “Resolution”). The Provisions are the first specific regulations concerning personal information protection by telecommunications service providers in China.

On July 12, 2013, Illinois Attorney General Lisa Madigan announced that she sent letters to operators of eight popular health-related websites requesting information about the websites’ online data collection practices. The Attorney General’s press release underscored how individuals’ health-related information shared online, which would be protected if disclosed in a traditional medical setting, “can be captured, shared and sold when online users enter their information into a website.” The Attorney General also stated that “website disclosure about the extent to which information is captured or shared is buried in privacy policies not found on the websites’ main pages.”

Senior Attorney Rosemary Jay reports from London:

On June 25, 2013, Advocate-General Jääskinen of the European Court of Justice (“ECJ”) delivered his Opinion in Google Spain S.L. and Google Inc. v Agencia Española de Protección de Datos (Case C-131/12, “Google v AEPD” or the “case”).

The case concerns Google Search results, and whether individuals have a right to erasure of search result links about them. The Opinion concludes that under current law, individuals have no such right. The European Commission’s proposed General Data Protection Regulation (the “Proposed Regulation”) would introduce a right to be forgotten. However, this Opinion appears to demonstrate unease with the basic concept of such a right.

On July 4, 2013, the European Parliament adopted new EU legislation to fight cyber crime. The Directive on attacks against information systems (the “Directive”) (see the Committee on Civil Liberties, Justice and Home Affairs’ report tabled for plenary), together with the launch of the European Cybercrime Centre and the adoption of the EU cybersecurity strategy, will strengthen the EU’s overall response to cyber crime and contribute to improving cybersecurity for all EU citizens.

On July 2, 2013, the Indian government released its ambitious National Cyber Security Policy 2013. The development of the policy was prompted by a variety of factors, including the growth of India’s information technology industry, an increasing number of cyber attacks and the country’s “ambitious plans for rapid social transformation.” The policy sets forth 14 diverse objectives that range from enhancing the protection of India’s critical infrastructure, to assisting the investigation and prosecution of cyber crime, to developing 500,000 skilled cybersecurity professionals over the next five years.

On July 1, 2013, the National Institute of Standards and Technology (“NIST”) issued a preliminary draft outline of the Cybersecurity Framework that is being developed pursuant to the Obama Administration’s February 2013 executive order, Improving Critical Infrastructure Cybersecurity (the “Executive Order”).

Today, July 1, 2013, the Federal Trade Commission’s changes to the Children’s Online Privacy Protection Rule (the “Rule”) officially come into effect. On December 19, 2012, the FTC announced that it had published the amended Rule following two years of public comments and multiple reviews of various proposed changes.

On June 18, 2013, the New York office of Hunton & Williams LLP office hosted Cornell University’s Privacy and Data Security Symposium, Privacy, Security & Your Data - Concerns in a Changing World. The program focused on global privacy and cybersecurity issues, including protecting the personal information of Internet users, balancing user privacy with law enforcement concerns, and implementing responsible data stewardship and governance. Moderated by Cornell University’s Tracy Mitrano, Director of IT Policy and Institute for Computer Policy and Law, the panel included:

In recent months, the Belgian media has reported on a significant increase in data breaches. In December 2012, the National Belgian Railway Company inadvertently published 1.46 million sets of customer data online. The rise in data security incidents has caught the attention of the Belgian Privacy Commission, which has the authority to make recommendations on any matter relating to the application of the fundamental data protection principles in the Belgian Data Protection Act of December 8, 1992. In a May 2013 article published in Bloomberg BNA’s World Data Protection Report

The Bavarian data protection authority recently updated its compliance initiative regarding online tracking tools to include Adobe’s online tracking product (Adobe Analytics (Omniture)). As with previous initiatives of this nature, the underlying analyses were carried out in an automated manner, using a program specifically developed by the Bavarian data protection authority to verify compliance.

On June 14, 2013, Texas Governor Rick Perry signed a bill requiring law enforcement agencies to obtain warrants before accessing customer electronic data held by email service providers. Introduced on March 4, 2013, the bill passed unanimously in both the Texas House and Senate on May 7 and May 22, respectively. The law takes effect immediately.

On June 17, 2013, the Federal Trade Commission announced that FTC Chair Edith Ramirez has appointed Jessica Rich as Director of the Bureau of Consumer Protection. Rich has served in several leadership roles in the FTC’s Bureau of Consumer Protection during her 20-year tenure with the agency. Most recently, she served as Associate Director of the Division of Financial Practices.

The UK Information Commissioner’s Office (“ICO”) has published guidance on the application of the Data Protection Act 1998 (“DPA”) to social networking sites and online forums. The guidance emphasizes that organizations and individuals that process data for non-personal purposes must comply with DPA requirements in their use of social networking sites and online forums just as they would in any other context.

On May 31, 2013, the Council of the European Union’s Justice and Home Affairs released a draft compromise text in response to the European Commission’s proposed General Data Protection Regulation (the “Proposed Regulation”). This compromise text narrows the scope of the Proposed Regulation and seeks to move from a detailed, prescriptive approach toward a risk-based framework.

On June 3, 2013, Privacy Piracy host Mari Frank interviewed Lisa J. Sotto, partner and head of the Global Privacy and Data Security practice at Hunton & Williams LLP, on KUCI 88.9 FM radio in Irvine, California. Listen to the latest developments in cybersecurity, including legal issues businesses should consider when dealing with cybersecurity threats and the types of information being targeted.

Access the radio interview.

On May 30, 2013, the French Data Protection Authority (“CNIL”) launched a public consultation on the digital “right to be forgotten.”

The CNIL recalled that the principle of a digital “right to be forgotten” is established in the Proposed EU Data Protection Regulation and that this new right will have to be exercised in accordance with freedom of expression, freedom of the press and the duty of remembrance.

In this context, the CNIL decided to consult web users with a goal of defining the broad outlines of the digital right to be forgotten. The CNIL also announced that it will ...

On May 20, 2013, the Estonian Data Protection Inspectorate issued its Annual Report 2012 (the “Report,” summary available in English). The number of inquiries, complaints and supervision proceedings have remained the same over the last few years. The main topics of complaints include employment relations, CCTV, electronic direct marketing and social media. The Inspectorate stated that its primary goal is to stop violations of the law, not to impose sanctions. According to the Report, the Inspectorate issued orders regarding compliance in 48 cases and imposed fines in 39 cases.

On May 20, 2013, the Irish Office of the Data Protection Commissioner (“ODPC”) published its annual report for 2012 (the “Report”). The Report summarizes the activities of the ODPC during 2012, including its investigations and audits, policy matters, and European and international activities.

On May 15, 2013, the Federal Trade Commission announced that it sent educational letters to over 90 businesses that appear to collect personal information from children under the age of 13, reminding them of the impending July 1 deadline for compliance with the updated Children’s Online Privacy Protection Rule (the “Rule”). The letters were sent to domestic and foreign companies that may be collecting information from children that is now considered “personal information” under the Children’s Online Privacy Protection Act (“COPPA”) but was not previously considered “personal information.” The definition of “personal information” under COPPA was expanded to include (1) photos, videos and audio recordings of children; and (2) persistent identifiers that may recognize users over time and across various websites and online services (e.g., cookies and IP addresses).

The Obama Administration is in the process of finalizing its review of a statutory electronic surveillance proposal initially developed by the FBI, and is expected to support the introduction of a modified version as legislation. The proposal addresses concerns raised by law enforcement and national security agencies regarding the widening gap between their legal authority to intercept real-time electronic communications pursuant to a court order, and the practical difficulties associated with actually intercepting those communications. According to the government, this gap increasingly prevents the agencies from collecting Internet-based phone calls, emails, chats, text messages and other communications of terrorists, spies, organized crime groups, child pornography distributors and other dangerous actors. The FBI refers to this as the “going dark” problem.

On May 10, 2013, CBS News interviewed two cybersecurity authorities to discuss the growing debate of privacy online. In the feature, entitled “Should there be a ‘right to be forgotten’ online?,” Lisa J. Sotto, partner and head of the Privacy and Data Security practice at Hunton & Williams LLP, talked about the problem of individuals’ rights to delete their online activity. She pointed out that the U.S. has no comprehensive online privacy law, and instead has a framework “comprised of a patchwork quilt of laws.” ...

A state court has dismissed the California Attorney General’s claims that Delta Air Lines Inc. (“Delta”) violated the California Online Privacy Protection Act by failing to have an appropriately posted privacy policy for its mobile application, Bloomberg reports. The California AG sued Delta in December as part of an enforcement campaign that began with the issuance of warning letters to approximately 100 operators of mobile apps, including Delta. According to the Bloomberg report, a basis for the dismissal was the federal Airline Deregulation Act, under which a state ...

On May 7, 2013, the Federal Trade Commission announced that it issued letters to ten data broker companies warning that their practices could violate prohibitions against selling consumer information under the Fair Credit Reporting Act (“FCRA”). The FTC identified the ten data broker companies after a test-shopping operation that indicated these companies were willing to sell consumer information without adhering to FCRA requirements.

On May 6, 2013, the Global Privacy Enforcement Network (“GPEN”) announced its first “Internet Privacy Sweep,” in which 19 data protection authorities are participating. This joint effort, which runs May 6-12, 2013, involves a review of the information notices posted online by major websites.

In April 2013, the Ministry of Industry and Information Technology of the People’s Republic of China (the “MIIT”) issued a new rule entitled the “Notice on Strengthening the Administration of Networked Smart Mobile Devices” (the “Notice”). This Notice, which will become effective on November 1, 2013, was issued in draft form in June 2012 along with a request for public comment.

On May 6, 2013, the Federal Trade Commission announced that it had voted unanimously to reject a request from industry groups to delay the July 1, 2013 deadline for implementation of the updated Children’s Online Privacy Protection Rule (the “Rule”). The groups had argued that the delay was necessary because they needed more time to comply with the changes to the Rule, which the FTC promulgated on December 19, 2012. In its response to the groups, the FTC asserted that the groups have been on notice of the changes since the beginning of the rulemaking process over three years ago, and ...

On May 7, 2013, the hacker group Anonymous announced that it, in concert with Middle East- and North Africa-based criminal hackers and cyber actors, will conduct a coordinated online attack labeled “OpUSA” against banking and government websites today. Anonymous stated that OpUSA will be a distributed denial of service (“DDoS”) in which websites may be defaced and legitimate users may be unable to access websites.

On April 25, 2013, the Federal Trade Commission released an updated version of its frequently asked questions regarding the Children’s Online Privacy Protection Act of 1998 (“COPPA”). The revised FAQs, entitled Complying with COPPA: Frequently Asked Questions (A Guide for Business and Parents and Small Entity Compliance Guide), provide general information on COPPA’s requirements and also include new guidance on the recent amendments to the Children’s Online Privacy Protection Rule (“COPPA Rule”).

On April 10, 2013, the Ministry of Industry and Information Technology of the People’s Republic of China (the “MIIT”) enacted two draft rules (“Provisions on the Protection of Personal Information of Telecommunications and Internet Users” and “Provisions on the Registration of Real Identity Information of Telephone Users”) to solicit public comments. The comment period is open until May 15, 2013. Both Drafts include proposals for substantial provisions on the protection of personal information and were enacted according to the Resolution of the Standing Committee of the National People’s Congress Relating to Strengthening the Protection of Information on the Internet (issued by the Standing Committee in December 2012) and some other telecommunications rules.

On April 17, 2013, the Federal Trade Commission issued a press release seeking public input on “The Internet of Things” – the ability of numerous “everyday devices to communicate with each other and with people.” The FTC will accept comments through June 1, 2013, in advance of a public workshop to be held in Washington, D.C. on November 21, 2013.

On April 2, 2013, the Article 29 Working Party (the “Working Party”) adopted an Opinion (the “Opinion”) that elaborates on the purpose limitation principle set out in Article 6(1)(b) of the current EU Data Protection Directive 95/46/EC (the “Data Protection Directive”). The Opinion analyzes the scope of this principle under the Data Protection Directive, clarifies its limits and makes recommendations to strengthen it in the proposed General Data Protection Regulation (the “Proposed Regulation”). It also focuses on how to apply this principle in the context of Big Data and open data.

On April 2, 2013, the Securities and Exchange Commission issued a report regarding the investigation of a prominent public company and its CEO over disclosures made on the CEO’s personal social media page. The Commission did not bring enforcement charges in this case, but the report set forth the Commission’s view that, under certain circumstances, issuer-sponsored social media can be a permissible channel of dissemination of information under Regulation FD.

Adopted in 2000, Regulation FD generally prohibits public companies and personnel acting on their behalf from ...

On April 3, 2013, the Federal Trade Commission issued a press release announcing that it had sent warning letters to operators of six websites that provide rental history reports to landlords for tenant screening purposes. The letters informed the website operators that they may be considered consumer reporting agencies (“CRAs”) subject to the requirements of the Fair Credit Reporting Act (“FCRA”).

On March 28, 2013, the Department of Commerce’s Notice of Inquiry into “Incentives to Adopt Improved Cybersecurity Practices” was published in the Federal Register (78 Fed. Reg. 18954). This Notice, which includes a series of broad questions for owners of the nation’s critical infrastructure, follows up on earlier Commerce inquiries focused on incentives for noncritical infrastructure. The Notice states that Commerce will use the responses it receives to evaluate a set of incentives designed to encourage owners of critical infrastructure to participate in a voluntary cybersecurity program. The Notice also indicates that Commerce will use the responses to inform its evaluation of whether the incentives would require legislation or could be implemented pursuant to existing law and authorities. In addition, the Notice provides that Commerce may use the responses to develop a broader set of recommendations that would apply to U.S. industry as a whole.

On March 27, 2013, the UK Government announced the Cyber Security Information Sharing Partnership (“CISP”), a partnership between government and industry to share intelligence on cybersecurity threats.

Introduction of the CISP follows a successful pilot program across key UK sectors and is part of the UK’s Cyber Security Strategy to facilitate information-sharing on cyber threats. It introduces a secure web portal where government and industry partners can exchange real-time information regarding threats and vulnerabilities they have identified. It also sets up a team of expert analysts, the Fusion Cell, to draw together a single intelligence picture of cyber threats across the UK. It is understood that the Fusion Cell will be staffed by analysts drawn from industry, as well as the law enforcement and intelligence communities.

On March 20, 2013, the French Data Protection Authority (“CNIL”) issued (in French) guidance on keylogger software (the “Guidance”). Keylogger software enables an employer to monitor all the activities that take place on an employee’s computer (such as every key typed on the computer’s keyboard and every screen viewed by the employee), without the employee’s knowledge.

On March 19, 2013, the French Data Protection Authority (“CNIL”) announced (in French) its annual inspection program, providing an overview of its inspections of data controllers in 2012 and a list of inspections that it plans to conduct in 2013. Under French data protection law, the CNIL is authorized to collect any useful information in connection with its investigations and has access to data controllers’ electronic data and data processing programs.

On March 14, 2013, the 85th Conference of the German Data Protection Commissioners concluded in Bremerhaven. This biannual conference provides a private forum for the 16 German state data protection authorities (“DPAs”) and the Federal Commissioner for Data Protection and Freedom of Information, Peter Schaar, to share their views on current issues, discuss relevant cases and adopt Resolutions aimed at harmonizing how data protection law is applied across Germany.

On February 27, 2013, the Article 29 Working Party (the “Working Party”) adopted an Opinion (the “Opinion”) addressing personal data protection issues related to the development and use of applications on mobile devices. The Opinion identifies the key data protection risks associated with mobile apps and clarifies the legal framework and obligations applicable to the various parties involved in the development and distribution of mobile apps, including app stores, app developers, operating system and device manufacturers and advertisers.

On March 5, 2013, the German Federal Ministry of the Interior published proposed amendments (in German) to the German Federal Office for Information Security Law. These proposed amendments are significant because they establish a new duty to notify the German Federal Office for Information Security in the event of a cybersecurity breach.

On March 8, 2013, the Federal Trade Commission issued a staff report entitled Paper, Plastic… or Mobile? An FTC Workshop on Mobile Payments (the “Report”). The Report is based on a workshop held by the FTC in April 2012 and highlights key consumer and privacy issues resulting from the increasingly widespread use of mobile payments.

Although the FTC recognizes the benefits of mobile payments, such as ease and convenience for consumers and potentially lower transaction costs for merchants, the Report notes three areas of concern with the mobile payments system: (1) dispute resolution, (2) data security and (3) privacy.

On March 12, 2013, Connecticut Attorney General George Jepsen announced that a coalition of 38 states had entered into a $7 million settlement with Google Inc. (“Google”) regarding its collection of unsecured Wi-Fi data via the company’s Street View vehicles between 2008 and 2010. The settlement is the culmination of a multi-year investigation by the states that we first reported on in 2010.

On February 28, 2013, a White House official confirmed that President Obama will nominate Edith Ramirez as Chair of the Federal Trade Commission. Ramirez, who has served as an FTC Commissioner since April 2010, will replace outgoing Chairman Jon Leibowitz, who announced his departure earlier this month.

Prior to being nominated to the FTC in 2010, Ramirez worked as an attorney in private practice, focusing on litigation and antitrust issues. Ramirez has been an active participant in the Asia-Pacific Economic Cooperation Data Privacy Subgroup and the development of the APEC ...

On February 26, 2013, the National Institute of Standards and Technology (“NIST”) issued a Request for Information (“RFI”) to gather comments regarding the development of a framework to reduce cybersecurity risks to critical infrastructure. As we previously reported, the Obama Administration’s executive order, Improving Critical Infrastructure Cybersecurity (the “Executive Order”), released on February 12, 2013, directs NIST to coordinate development of this framework. Under the Executive Order, NIST is charged with collaborating with industry partners and identifying existing international standards and practices that have proven effective.

The Executive Order, “Improving Critical Infrastructure Cybersecurity,” and the Presidential Policy Directive (“PPD”), “Critical Infrastructure Security and Resilience,” signed by President Obama on February 12, 2013, raise the stakes in the national debate over cybersecurity requirements and seem likely, if not designed, to provoke a legislative response. Industry has good reason to pay attention.

On February 12, 2013, the Obama Administration released its highly-anticipated Executive Order on cybersecurity. Evolving cyber threats and increased government attention to these issues will affect companies in every industry, and businesses must consider a proactive approach to protecting against risks to critical business systems, company personal data, intellectual property and other proprietary information.

On February 12, 2013, in conjunction with the release of an executive order on Improving Critical Infrastructure Cybersecurity (the “Executive Order”), President Obama signed a Presidential Policy Directive on Critical Infrastructure Security and Resilience (“PPD-21” or “PPD”). The PPD revokes the 2003 Homeland Security Presidential Directive-7 (issued by President George W. Bush as an initiative under the former Office of Homeland Security and the Homeland Security Council) to adjust to the new risk environment and make the nation’s critical infrastructure more resilient. The PPD expands upon the work that has been accomplished to date for the physical security of critical infrastructure and lays a foundation for the implementation of the Executive Order to protect critical infrastructure cybersecurity.

Today, the Obama Administration released an executive order, Improving Critical Infrastructure Cybersecurity (the “Executive Order”), which is focused primarily on government actions to support critical infrastructure owners and operators in protecting their systems and networks from cyber threats. The Executive Order requires administrative agencies with cybersecurity responsibilities to (1) share information in the near-term with the private sector within the scope of their current authority and to develop processes to address cyber risks; and (2) review and report to the President on the sufficiency of their current cyber authorities. The requirements to review and report to the President likely will serve to pressure Congress to pass more comprehensive legislation that should, inter alia, address issues that an executive order cannot, such as the provision of liability protection, incentives for compliance, and regulatory authority to compel compliance.

On January 17, 2013, Mexico’s Ministry of Economy published its Lineamientos del Aviso de Privacidad (in Spanish) (“Privacy Notice Guidelines” or “Guidelines”), which it prepared in collaboration with the Mexican data protection authority. The Guidelines introduce heightened notice and opt-out requirements for the use of cookies, web beacons and similar technology, and they impose extensive requirements on the content and delivery of privacy notices generally (with respect to all personal data, not just data collected via cookies and other automated means). The Guidelines will take effect in mid-April.

On February 7, 2013, the European Commission, together with the High Representative of the Union for Foreign Affairs and Security Policy, launched their cybersecurity strategy for the European Union (“Strategy”). As part of this Strategy, the European Commission also proposed a draft directive on measures to ensure a common level of network and information security (“NIS”) across the EU (the “Directive”).

On February 4, 2013, the Supreme Court of California examined whether Section 1747.08 of the Song-Beverly Credit Card Act (“Song-Beverly”) prohibits an online retailer from requesting or requiring personal identification information from a customer as a condition to accepting a credit card as payment for an electronically downloadable product. In a split decision, the majority of the court ruled that Song-Beverly does not apply to online purchases in which the product is downloaded electronically.

On February 1, 2013, the Federal Trade Commission issued a new report entitled Mobile Privacy Disclosures: Building Trust Through Transparency. The report makes recommendations “for the major participants in the mobile ecosystem as they work to improve mobile privacy disclosures,” offering specific recommendations for mobile platforms, app developers, advertising networks and other third parties operating in this space. The FTC’s report also makes mention of the Department of Commerce’s National Telecommunications and Information Administration’s efforts to engage in a multistakeholder process to develop an industry code of conduct for mobile apps.

On February 1, 2013, the Federal Trade Commission announced that Chairman Jon Leibowitz will step down from his role on February 15, 2013. Leibowitz, who has been with the Commission since 2004 and was appointed Chairman in 2009, leaves the agency with a much more aggressive privacy agenda than the one he inherited, having helped to shape “groundbreaking work on consumer protection and competition issues.” During what may be his final press conference as Chairman, Leibowitz announced a new staff report on mobile app privacy disclosures and an enforcement action against the operator of a social networking app stemming from allegedly deceptive information collection practices that violated Section 5 of the FTC Act and the Children’s Online Privacy Protection Act.

Recently, the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs (“LIBE”) released a study titled Fighting cyber crime and protecting privacy in the cloud (the “Study”). The Study originally was prepared in October 2012 at the request of the LIBE Committee by the European Parliament’s Policy Department of Citizens’ Rights and Constitutional Affairs, with the help of the Centre for European Policy Studies and the Centre d’Etudes sur les Conflits.

Reporting from Washington, D.C., Hunton & Williams associate Andrew Walsh writes:

Data embedded in photos can make a picture worth far more than a thousand words. To provide an example rich in irony, a well-known figure in Internet security who was wanted for police questioning recently inadvertently pinpointed his location for the authorities with an online posting of a photo containing Exchangeable Image File (“EXIF”) data. EXIF data is saved with JPG files on digital cameras and, if the camera has GPS, the EXIF data may include geolocation information such as the date, time, longitude, latitude and altitude of the photo.

On December 19, 2012, the Irish Data Protection Commissioner (“DPC”) wrote to 80 website operators requesting details regarding how they are complying with recent changes to Irish law governing the use of cookies and other similar technologies (SI 336/ 2011, the “Regulations”). The letter expects website operators, which include government departments as well as companies, to comply fully with the Regulations, which took effect 18 months ago and require user consent before deploying or accessing cookies or other information stored on users’ computer equipment. If the relevant organizations have not yet achieved compliance, they are expected to provide an explanation to the DPC explaining “why it has not been possible to comply by now, a clear timescale for when compliance will be achieved, and details of specifically what work is being done to make that happen.”

On December 28, 2012, the Standing Committee of the National People’s Congress (“NPC”) of the People’s Republic of China passed the Resolution of the Standing Committee of the NPC Relating to Strengthening the Protection of Information on the Internet (the “Regulations”). The Regulations contain significant and far-reaching requirements applicable to the collection and processing of electronic personal information via the Internet.

Internet users have expressed increasing concern about efforts to track their online activities. As the online tracking methods used to target advertisements have expanded in both scope and complexity, regulators have taken notice and have begun to act in the online behavioral tracking and advertising space. In an article published in the November/December 2012 issue of IP Litigator, Lisa J. Sotto, partner and head of the Global Privacy and Data Security practice at Hunton & Williams LLP, and Melinda L. McLellan, a senior associate on the firm’s Privacy and Data Security team ...

On December 18, 2012, the U.S. House of Representatives passed H.R. 6671, a bill that would amend the Video Privacy Protection Act (“VPPA”) consent requirements for disclosing consumers’ viewing information. The Senate approved the bill without changes on December 20, 2012. The bill would make it easier for companies to develop innovative technologies for the sharing of consumers’ video viewing habits. The current version of the VPPA requires certain video providers to obtain a consumer’s consent each time they wish to share the consumer’s viewing information ...

On December 18, 2012, the Federal Trade Commission issued Orders to File Special Report (the “Orders”) to nine data brokerage companies, seeking information about how these companies collect and use personal data about consumers. In the Orders, the FTC requests detailed information about the data brokers’ privacy practices, including:

• the data brokerage companies’ online and offline products and services that use personal data;
• the sources and types of personal data the data brokerage companies collect;
• whether, and how, the companies acquire consumer consent before obtaining, collecting, generating, deriving, disseminating or storing the personal data;
• whether, and how, the personal data is aggregated, anonymized or de-identified;
• how the companies monitor, audit or evaluate the accuracy of the personal data they obtain;
• if, and how, consumers are able to access, correct, delete or opt out of the collection, use or sharing of the personal data the data brokerage companies maintain about the consumers;
• how the data brokerage companies provide notice to consumers about their data privacy practices;
• the advertisements or promotional materials the companies use to describe their products and services; and
• information about any complaints or disputes, or governmental or regulatory inquiries or actions, related to the companies’ data privacy practices.

U.S. Federal Trade Commission Chairman Jon Leibowitz announced on Monday that David C. Vladeck, director of the FTC's Bureau of Consumer Protection, is leaving the Commission on December 31, 2012 to return to the Georgetown University Law Center.

On December 19, 2012, the Federal Trade Commission announced the adoption of its long-awaited amendments to the Children’s Online Privacy Protection Rule (the “Rule”). The FTC implemented the Rule, which became effective on April 21, 2000, pursuant to provisions in the Children’s Online Privacy Protection Act of 1998 (“COPPA”).

On December 18, 2012, the Information Commissioner’s Office (“ICO”) released an enforcement report (the “Report”) on the extent of compliance with recent changes to UK law governing the use of cookies (The Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2011). The ICO previously issued an interim report on organizations’ attempts to achieve compliance, in which it concluded that organizations “must try harder” with their cookie compliance efforts.

On December 10, 2012, the Federal Trade Commission issued a new report, Mobile Apps for Kids: Disclosures Still Not Making the Grade, which follows up on the FTC’s February 2012 report, Mobile Apps for Kids: Current Privacy Disclosures are Disappointing. The FTC conducted a follow-up survey regarding pre-download mobile app privacy disclosures, and whether those disclosures accurately describe what occurs during use of the apps.