Privacy & Information Security Law Blog

On January 23, 2014, the Privacy and Civil Liberties Oversight Board (“PCLOB”) released a report (the “Report”) concluding that the National Security Agency (“NSA”) does not have a valid legal basis for its bulk telephone records collection program. The NSA’s bulk collection of consumer telephone records has been under increased scrutiny since Edward Snowden leaked information about the program in June 2013, and recently has faced legal challenges. According to the Report, the NSA’s program exceeded its statutory parameters.

On January 22, 2014, at the World Economic Forum in Davos-Klosters, Switzerland, Sweden’s Minister for Foreign Affairs Carl Bildt announced the creation of a new independent commission that will examine the future of Internet governance. The Global Commission on Internet Governance (the “Commission”) is being launched by think tanks Chatham House and The Centre for International Governance Innovation (“CIGI”). The Commission will be chaired by Bildt, Sweden’s former Prime Minister, and supported by expert members representing business, government, academia and civil society. In announcing the initiative, Bildt stated that “[n]et freedom is as fundamental as freedom of information and freedom of speech in our societies.”

On January 21, 2014, the Federal Trade Commission announced settlements with twelve companies that allegedly falsely claimed that they complied with the U.S.-EU Safe Harbor Framework. The settlements stem from allegations that the companies violated Section 5 of the FTC Act by falsely representing that they held current Safe Harbor certifications despite having allowed their certifications to expire. The companies involved represent a variety of industries, ranging from technology and accounting to consumer products and National Football League teams.

On January 21, 2014, Hunton & Williams’ Global Privacy and Cybersecurity practice group hosted the latest webcast in its Hunton Global Privacy Update series. The program highlighted some of the key privacy developments that companies will encounter in 2014, including cybersecurity issues in the U.S., California’s Do Not Track legislation, Safe Harbor, the EU General Data Protection Regulation and the CNIL’s new cookie guidance.

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.