Privacy & Information Security Law Blog

Texas Attorney General Ken Paxton is investigating Facebook Inc. (“Facebook”) for alleged violations of the Texas Business and Commercial Code, which contains provisions governing the collection, retention and disclosure of biometric data. As we previously reported, Facebook recently reached a $650 million settlement for alleged violations of Illinois’ Biometric Information Privacy Act for their use of facial recognition software without permission from affected users.

On July 23, 2020, the UK Information Commissioner’s Office (the “ICO”) published the first two reports of its Data Protection Regulatory Sandbox Beta phase (the “Beta phase”) involving projects by Jisc (a not-for-profit organization serving the higher and further education and skills sectors) and Heathrow Airport Ltd.

On July 22, 2020, the European Data Protection Board (the “EDPB”) adopted an information note (the “Note”) to assist organizations relying on Binding Corporate Rules (“BCRs”) for international personal data transfers, as well as supervisory authorities, in preparing for the end of the Brexit implementation period on December 31, 2020. The Note is provided specifically for those groups of undertakings and enterprises that have the UK Information Commissioner’s Office (“ICO”) as the competent supervisory authority for their BCRs.

On July 24, 2020, the European Data Protection Board (the “EDPB”) published a set of Frequently Asked Questions (the “FAQs”) on the judgment of the Court of Justice of the European Union (the “CJEU”) in the Schrems II case (case C-311/18). In its judgment, the CJEU concluded that the Standard Contractual Clauses (the “SCCs”) issued by the European Commission for the transfer of personal data to data processors established outside of the EU are valid, but it struck down the EU-U.S. Privacy Shield framework. With its FAQs, the EDPB sought to provide responses to some of the many questions organizations are asking in the aftermath of the Schrems II ruling.

On Wednesday, July 22, the New York Department of Financial Services (the “NYDFS”) announced that it had filed administrative charges against First American Title Insurance Co. under the NYDFS Cybersecurity Regulation, marking the agency’s first enforcement action since the rules went into effect in March 2017.

On July 16, 2020, the Court of Justice of the European Union (the “CJEU”) invalidated the EU-U.S. Privacy Shield Framework as part of its judgment in the Schrems II case (case C-311/18). In its judgment, the CJEU concluded that the Standard Contractual Clauses (the “SCCs”) issued by the European Commission for the transfer of personal data to data processors established outside of the EU are valid, but it struck down the Privacy Shield framework on the basis that the limitations on U.S. public authorities’ access to EU personal data were not sufficient for the level of protection in the U.S. to be considered equivalent to that ensured in the EU, and that the framework does not grant EU individuals actionable rights before a body offering guarantees that are substantially equivalent to those required under EU law.

On July 16, 2020, the Court of Justice of the European Union (the “CJEU”) issued its landmark judgment in the Schrems II case (case C-311/18). In its judgment, the CJEU concluded that the Standard Contractual Clauses (the “SCCs”) issued by the European Commission for the transfer of personal data to data processors established outside of the EU are valid. Unexpectedly, the Court invalidated the EU-U.S. Privacy Shield framework.

On July 6, 2020, the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, the “Dutch DPA”) imposed a €830,000 fine on the Dutch Credit Registration Bureau (Stichting Bureau Krediet Registration, “BKR”) for non-compliance with Articles 12(2) and 12(5) of the EU General Data Protection Regulation (the “GDPR”) between May 2018 and March 2019.

On June 30, 2020, the Federal Trade Commission (“FTC”) announced it had entered into a consent agreement (the “Proposed Settlement”) with NTT Global Data Centers Americas, Inc. (“NTT”), a successor in interest to RagingWire Data Centers, Inc. (“RagingWire”), to settle allegations in a November 2019 Administrative Complaint that RagingWire misrepresented its participation in and compliance with the EU-U.S. Privacy Shield Framework (“Privacy Shield”), in violation of the FTC Act.

In one of the most important cases on global data transfers, the Court of Justice of the European Union (“CJEU”) will rule on the validity of the Standard Contractual Clauses (“SCCs”) in the Schrems II case (case C-311/18) on July 16, 2020. Invalidation of the SCCs would leave businesses scrambling to find an alternative data transfer mechanism. But there may be significant practical challenges for businesses even if the SCCs survive.