Privacy & Information Security Law Blog

On March 5, 2013, Costa Rica published the Reglamento a la Ley de Protección de la Persona Frente al Tratamiento de sus Datos Personales (Regulations of the Law of Protection of the Person in the Processing of His Personal Data) (the “Regulations”). The wide-ranging Regulations, which took effect immediately, expand and clarify many aspects of the underlying law and include the requirements described below.

On March 7, 2013, the UK Information Commissioner’s Office (“ICO”) published guidance (the “Guidance”) on Bring Your Own Device (“BYOD”) to explain to data controllers “what they need to consider when permitting the use of personal devices to process personal data for which they are responsible.” BYOD refers to the use of individuals’ personal devices to access and store corporate information.

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.

As reported in The Washington Post, large financial institutions are increasingly disclosing cyber attacks, and potential vulnerability to cyber threats, in their annual reports filed with the Securities and Exchange Commission. Numerous banks disclosed such attacks in their 2012 reports, even in cases where the ongoing threat of the attacks did not result in any material harm to the institution. For example:

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.

The UK Information Commissioner’s Office has opened a public consultation on a proposed code of practice for the press (the “Consultation”). Pursuant to Section 51 of the UK Data Protection Act 1998 (the “DPA”), the ICO has the authority to issue industry codes of practice.

On March 11, 2013, in Tyler v. Michaels Stores, Inc., the Massachusetts Supreme Judicial Court effectively reinstated the suit against the retailer by answering favorably for the plaintiff three certified questions from the United States District Court for the District of Massachusetts regarding Massachusetts General Laws Chapter 93, Section 105(a) entitled “Consumer Privacy in Commercial Transactions” (“Section 105(a)”). The court ruled that (1) a ZIP code constitutes personal identification information under the Massachusetts law; (2) a plaintiff may bring an action for a violation of the Massachusetts law absent identity fraud; and (3) the term “credit card transaction form” refers equally to electronic and paper transaction forms. The Massachusetts court’s determination that a ZIP code constitutes personal identification information is similar to the determination in Pineda v. Williams-Sonoma Stores, Inc., in which the California Supreme Court held that ZIP codes are “personal identification information” under California’s Song-Beverly Credit Card Act. More than 15 states, including Massachusetts and California, have statutes limiting the type of information that retailers can collect from customers.

On February 20, 2013, the UK Court of Appeal issued its decision in Smeaton v Equifax Plc, [2013] EWCA Civ 108, overturning an award of damages to an individual about whom a credit reference agency had maintained an inaccurate record.

On March 8, 2013, the European Union’s Justice and Home Affairs Council held legislative deliberations regarding the European Commission’s proposed General Data Protection Regulation (the “Proposed Regulation”).