Privacy & Information Security Law Blog

It appears as though 2014 will be a banner year for class actions, including numerous cases concerning privacy and cybersecurity issues. In an article published in Law360, two Hunton & Williams litigation partners summarize recent case law and statistics related to class actions and offer predictions for the year ahead.

In January 2014, the Department of Commerce’s International Trade Administration (“ITA”) posted a Key Points document to provide additional information about the benefits, oversight and enforcement of the U.S.-European Union and U.S.-Swiss Safe Harbor Frameworks. The Key Points document supplements information about the Safe Harbor Frameworks already available on the Department of Commerce website. For example, in the Key Points, the ITA notes that: 

On January 16, 2014, the Federal Trade Commission announced a settlement with TeleCheck Services, Inc., and its affiliated debt-collection entity, TRS Recovery Services, Inc. (collectively, “TeleCheck”). The settlement stems from allegations that TeleCheck violated various provisions of the Fair Credit Reporting Act (“FCRA”). According to the press release, the settlement is “part of a broader initiative to target the practices of data brokers, which often compile, maintain, and sell sensitive consumer information” and is similar to an FTC settlement with a different company in August 2013.

In a major speech delivered at the U.S. Department of Justice on January 17, 2014, President Obama addressed the call for reforms to government surveillance programs following disclosures regarding National Security Agency (“NSA”) activities leaked by Edward Snowden since June of last year. The President discussed the need to advance national security while strengthening protections for privacy and civil liberties, improving transparency in intelligence programs, engaging in continual oversight and rebuilding trust among foreign leaders and citizens. He outlined several areas of reform:

On January 15, 2014, the Federal Trade Commission announced a proposed settlement with Apple Inc. stemming from allegations that the company billed consumers for mobile app charges incurred by children without their parents’ consent. Specifically, the FTC’s complaint alleges that Apple violated the FTC Act by not informing account holders that, for a 15-minute window after entering their password to approve a single in-app purchase, their children could make unlimited purchases without further action by the parent.

On January 16, 2014 the High Court in London rejected submissions made on behalf of Google Inc. (“Google”) that the case brought against it by three UK-based users of Apple’s Safari browser should be heard in the U.S., rather than before an English court. The decision means that the case could be heard before a court in England, although media reports suggest Google will appeal the decision.

As reported by Bloomberg BNA, on January 13, 2014, Ukrainian Parliament Commissioner for Human Rights Valeriya Lutkovska (the “Ombudsman”) announced the adoption of new data protection regulations. The Ombudsman became the new data protection authority in Ukraine as of January 1, 2014, when amendments to abolish the previous data protection authority became effective. As we previously reported, Ukraine first passed personal data protection legislation in June 2010.

As reported in the Hunton Employment & Labor Perspectives Blog:

While much attention has been paid this year to the Equal Employment Opportunity Commission’s (“EEOC’s”) agenda and litigation over criminal background checks (the agency asserts such background checks have a disparate impact on minority groups), a parallel challenge kept pace in the form of private class action litigation under the Fair Credit Reporting Act (“FCRA”). 2013 saw a number of significant class action settlements against both employers and consumer reporting agencies (“CRAs”) for alleged violations of the FCRA in the use of criminal background checks:

On January 8, 2014, Senator Patrick Leahy (D-VT), Chair of the U.S. Senate Judiciary Committee, reintroduced the Personal Data Privacy and Security Act of 2014, comprehensive information security legislation that would establish a national standard for data breach notification and require businesses to safeguard customers’ sensitive personal information from cyber threats. The bill also would establish criminal penalties for individuals who intentionally or willfully conceal a security breach involving personal data when the incident causes economic damage to consumers.

On December 23, 2013, the Federal Trade Commission announced that it accepted a proposed mechanism, submitted by Imperium, LLC (“Imperium”), to obtain verifiable parental consent in accordance with the Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013.