Privacy & Information Security Law Blog

On September 29, 2017, the Federal Trade Commission published the eleventh blog post in its “Stick with Security” series. As previously reported, the FTC will publish an entry every Friday for the next few months focusing on each of the 10 principles outlined in its Start with Security Guide for Businesses. This week’s post, entitled Stick with Security: Secure paper, physical media, and devices, highlights the importance of adopting a 360 degree approach to protecting confidential data. This strategy includes securing not only networks and information systems, but also paper, physical media and devices.

On October 3, 2017, the Irish High Court referred a legal challenge to the validity of the EU Standard Contractual Clauses (“SCCs”) to the Court of Justice of the European Union (“CJEU”) for resolution. Max Schrems, who had previously successfully challenged the validity of the now defunct U.S.-EU Safe Harbor Program in the Schrems case, had brought a similar claim in relation to the SCCs, and had requested that the Irish Data Protection Commissioner (“DPC”) declare that the SCCs do not provide sufficient protection when personal data is transferred outside the EU to the US and thus are invalid. The Irish DPC declined to make such a ruling, but instead referred the case to the Irish High Court, and requested that the case be referred to the CJEU for a final decision on the validity of the SCCs.

On September 29, 2017, Samanage USA, Inc. (“Samanage”), a North Carolina-based technology company that provided cloud-based IT support services as a subcontractor for Vermont’s health care exchange (“Vermont Health Connect”), agreed to a $264,000 settlement with the Vermont Attorney General in relation to a breach that exposed the Social Security numbers of 660 Vermont Health Connect users.

Last week, the Centre for Information Policy Leadership (“CIPL”) and several privacy team members at Hunton & Williams LLP attended the 39th International Conference of Data Protection and Privacy Commissioners in Hong Kong (the “Conference”). The weeklong event hosted by Stephen Kai-yi Wong, Privacy Commissioner for Personal Data, Hong Kong was attended by over 3000 privacy professionals from data protection authorities (“DPAs”), industry and research sectors. CIPL hosted two events at the conference, as well as a joint roundtable with Hunton & Williams and Citibank, throughout the week.

This week, the Securities and Exchange Commission (“SEC”) announced the creation of a new Cyber Unit that will target cyber-related threats that may impact investors. The Cyber Unit, which will be part of the SEC’s Enforcement Division, will seek to combat various types of cyber-related threats including:

On September 25, 2017, the Centre for Information Policy Leadership (“CIPL”) at Hunton & Williams LLP issued a discussion paper on Regulating for Results: Strategies and Priorities for Leadership and Engagement (the “Discussion Paper”). The Discussion Paper aims to stimulate dialogue about strategies and priorities for data protection authorities (“DPAs”) by putting forward a number of key questions. For example:

On September 20, 2017, the French Data Protection Authority (CNIL) announced that it has updated two standards on privacy seals in order to take into account the requirements of the EU General Data Protection Regulation (“GDPR”).

On September 22, 2017, the Federal Trade Commission published the tenth blog post in its “Stick with Security” series. As previously reported, the FTC will publish an entry every Friday for the next few months focusing on each of the 10 principles outlined in its Start with Security Guide for Businesses. This week’s post, entitled Stick with Security: Put procedures in place to keep your security current and address vulnerabilities that may arise, outlines how and why companies should keep their security up to date and respond quickly to credible threats.

On September 19, 2017, the French Data Protection Authority (“CNIL”) launched an online public consultation on two topics identified by the Article 29 Working Party (“Working Party”) in its 2017 action plan for the implementation of the EU General Data Protection Regulation (“GDPR”). These two topics are transparency and international data transfers.

The Federal Trade Commission will host a workshop on informational injury on December 12, 2017.  The FTC’s three main goals for hosting the workshop are to:

1. “Better identify the qualitatively different types of injury to consumers and businesses from privacy and data security incidents;”
2. “Explore frameworks for how the FTC might approach quantitatively measuring such injuries and estimate the risk of their occurrence;” and
3. “Better understand how consumers and businesses weigh these injuries and risks when evaluating the tradeoffs to sharing, collecting, storing and using information.”