Privacy & Information Security Law Blog

As reported in the Hunton Employment & Labor Perspectives Blog, on October 10, 2011, California became the seventh state to enact legislation restricting public and private employers alike from using consumer credit reports in making hiring and other personnel decisions. Assembly Bill No. 22 both adds a new provision to the California Labor Code -- Section 1024.5 -- and amends California’s Consumer Credit Reporting Agencies Act (“CCRAA”). Effective January 1, 2012, California employers will be prohibited from requesting a consumer credit report for employment purposes unless they meet one of the limited statutory exceptions, and those employers meeting an exception, will be subjected to increased disclosure requirements. Connecticut, Illinois, Hawaii, Oregon, Maryland and Washington already have similar laws on the books, and many other states, as well as the federal government, are contemplating similar legislation. This trend creates a potential “credit-centric” minefield for employers that do business in any one or more of these states. In light of the multiple laws affecting their use, employers who utilize consumer credit reports in making personnel decisions should proceed cautiously. Employers must evaluate the need for these reports in making personnel decisions, review and modify their policies to ensure compliance with the myriad of regulations in this area, and monitor any new developments to ensure continued compliance.

On October 20, 2011, Mexico’s Ministry of Economy made public an update to its proposed Regulations to the Federal Law for the Protection of Personal Data Held by Private Parties. The new draft regulations, which contain changes made in light of public comments on the prior version, will take effect if they receive final executive approval, which may happen later this year. The updates to the draft regulations include:

• Rules specific to cloud computing
• Clarification of notice requirements
• Clarification of consent requirements
• Exemptions for certain business contact ...

On October 13, 2011, the Securities and Exchange Commission Division of Corporation Finance issued disclosure guidance (“Guidance”) regarding cybersecurity matters and cyber incidents. While the Guidance does not change existing disclosure requirements, it does add specificity to existing requirements. In some respects, that specificity is helpful, but the Guidance fails to take into account the uncertainty that inevitably accompanies efforts to assess and disclose cybersecurity matters and incidents.

Read a detailed summary of the Guidance and analysis regarding ...

Last month, two New Jersey judges issued opposing decisions in class action lawsuits regarding merchants’ point-of-sale ZIP code collection practices. The conflicting orders leave unanswered the question of whether New Jersey retailers are prohibited from requiring and recording customers’ ZIP codes at the point of sale during credit card transactions.

On October 10-12, 2011, the Council of Europe’s Bureau of the Consultative Committee of the Convention for the Protection of Individuals with regard to the Automatic Processing of Personal Data (known as the “T-PD-Bureau”) met in Strasbourg, France, to discuss, among other things, amending the Council of Europe’s Convention 108 and Additional Protocol. Convention 108 (together with the Protocol), which underlies the European Union’s legal framework for data protection, is the only legally-binding international convention that addresses data protection. Amendment of the Convention is also closely linked to the current review of the EU data protection framework.

On October 17, 2011, the French Data Protection Authority (the “CNIL”) launched a public consultation on cloud computing (the “Consultation”). The Consultation seeks to gather opinions from stakeholders (clients, providers, consultants) regarding cloud computing services for businesses, to identify legal and technical solutions that address data protection concerns while taking into account the economic interests involved.

On October 10, 2011, the French Data Protection Authority (the “CNIL”) released a video of newly-elected Chairwoman Isabelle Falque-Pierrotin presenting her priorities and vision for the future of the CNIL. Ms. Falque-Pierrotin was elected as the new Chair of the CNIL on September 21, 2011.

On September 7, 2011, the United Kingdom Information Tribunal published a decision that appears to resolve the long-running uncertainty regarding the extent to which anonymized personal information may be disclosed under the UK’s Freedom of Information legislation. The UK’s FOIA was introduced and applicable to most of the UK in 2000, with equivalent law following for Scotland in 2002.

On October 13, 2011, Marty Abrams, President of the Centre for Information Policy Leadership at Hunton & Williams LLP, presented “Accountability in a Page” as part of the “What it Means to Be Accountable” plenary session at the PIPA Conference 2011 taking place in Vancouver, British Columbia. Mr. Abrams, who leads the Centre’s Accountability Project, outlined the essential elements of accountability and described how top multinational companies are building accountability-based programs. According to Mr. Abrams, “accountability as mandated by the Canadian ...

On September 23, 2011, the Labor Chamber of the Court of Appeals of Caen (the “Court”) upheld a decision to suspend a whistleblower program implemented by a U.S. company’s French affiliate, despite the fact that the French Data Protection Authority (the “CNIL”) had inspected and approved the program prior to implementation. This decision follows recent amendments to the legal framework for whistleblower programs in France.