Privacy & Information Security Law Blog

On May 8, 2012, the Federal Trade Commission announced a settlement agreement with the social networking service Myspace LLC (“Myspace”). The FTC alleged that Myspace’s practice of sharing users’ personal information with unaffiliated third-party advertisers conflicted with representations the company made in its privacy policy, and could allow those advertisers to obtain users’ names, publicly available information and information about their online browsing habits.

On March 23, 2012, the Article 29 Working Party (the “Working Party”) adopted an Opinion on the European Commission’s data protection law reform proposals, including the draft Regulation that is of particular importance for businesses. The Working Party’s Opinion serves as the national data protection authorities’ contribution to the legislative process before the European Parliament and the European Council.

On December 13, 2011, the Information Commissioner issued updated guidance on compliance with recent changes to UK law governing the use of cookies (The Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2011 (“Regulations”)). Organizations were given a twelve-month grace period to comply with the new law. Initial guidance on the Regulations was released on May 9, 2011, but the Information Commissioner characterized that guidance as merely a “starting point for getting compliant rather than a definitive guide,” signaling that further advice would follow if appropriate. 

On December 8, 2011, the Article 29 Working Party (the “Working Party”) adopted an Opinion on the European Advertising Standards Alliance (“EASA”) and IAB Europe best practice recommendations for the online behavioral advertising (“OBA”) industry to comply with Article 5.3 of the revised e-Privacy Directive 2002/58/EC (the “cookie clause”). The cookie clause requires a user’s informed consent for the use of cookies and similar technologies that store and access information in the user’s terminal device. Finding practical ways of complying with the cookie clause has proven challenging for the OBA industry, which relies heavily on these kinds of tracking mechanisms.

On November 17, 2011, Senator Jay Rockefeller (D-WV), Chair of the Senate Committee on Commerce, Science and Transportation, issued a statement emphasizing the need for increased consumer protection on the Internet. Rockefeller cited “disturbing” reports about Facebook’s ability to track non-members and members who have logged out of the site, stating that companies should not be tracking users without their consent.

On September 14, 2011, the Article 29 Working Party (the “Working Party”) met with representatives of the European Advertising Standards Alliance (“EASA”) and IAB Europe, to discuss the industry’s new self-regulatory code of conduct for online behavioral advertising (the “Code”), which was released on April 14, 2011.

On September 12, 2011, the Department of Health and Human Services’ Office of the National Coordinator for Health Information Technology (“ONC”) unveiled a model privacy notice for personal health records (the “PHR Model Privacy Notice”).  The PHR Model Privacy Notice was developed by ONC in collaboration with consumers and vendors of personal health records (“PHRs”).  The PHR Model Privacy Notice is intended to enable consumers to “understand privacy and security policies and data sharing practice information, compare PHR company practices, and make informed decisions.”

Over the past several weeks, online tracking practices involving the use of Flash cookies and ETags have been the subject of new research studies, class action lawsuits and significant media attention.

On August 24, 2011, France’s new law concerning electronic communications (Ordonnance n° 2011-1012 du 24 août 2011 relative aux communications électroniques, or the “Ordinance”) came into force.  The Ordinance implements the provisions of the revised EU Directive 2002/58/EC (the “e-Privacy Directive”) with respect to the French Data Protection Act of 1978, the French Postal and Electronic Communications Code and the French Consumer Protection Code.  Specifically, the Ordinance amends the existing legal framework concerning cookies and introduces an opt-in regime for the use of cookies.

On July 12, 2011, Stanford Law School’s Center for Internet and Society reported the preliminary results of tests conducted with experimental software designed to detect third-party tracking.  Over the months spent developing “a platform for measuring dynamic web content,” researchers at the Stanford Security Lab analyzed tracking on the websites of Network Advertising Initiative (“NAI”) participants by observing how cookies are altered when a user opts out of behavioral tracking on the NAI website, or enables Do Not Track.

On June 6, 2011, Hunton & Williams hosted a panel discussion on what organizations in the UK, France, Germany and the Netherlands are doing to comply with the EU’s new cookie law.  The webinar, Consent for Cookies: Preparing for the EU Cookie Law, featured David Evans, Group Manager of Business and Industry of the UK Information Commissioner’s Office, and Hunton & Williams Brussels-based associates Olivier Proust, Dr. Jörg Hladjk and Martijn ten Bloemendal.  The panel was moderated by Bridget C. Treacy, partner in the London office of Hunton & Williams. 

On June 6, 2011, join Hunton & Williams for a panel discussion on the implementation of the new EU Cookie Law in the UK, France, Germany and the Netherlands.  EU law on the use of cookies is changing.  Opt-in consent will be required, but specific requirements may differ across the EU.  What are organizations doing to ensure compliance with the new cookie law?  Listen to David Evans, Group Manager of Business and Industry of the Information Commissioner's Office, explain the steps that UK organizations are expected to take.  Learn about cookie compliance in France, Germany and the ...

On May 25, 2011, the UK Information Commissioner’s Office (the “ICO”) issued a news release stating that organizations and businesses that run websites aimed at UK consumers will be given up to 12 months to “get their house in order” before enforcement of the new cookie law begins.  Information Commissioner Christopher Graham made it clear, however, that “[t]his does not let everyone off the hook.  Those who choose to do nothing will have their lack of action taken into account when we begin formal enforcement of the rules.”

From May 26, 2011, UK law regulating the use of cookies on websites will change from an opt-out regime, to one requiring prior opt-in consent.  This change poses significant practical challenges for website operators.  In guidance on the new regulations, the UK Information Commissioner has acknowledged the challenge but warned that website operators must take steps now to ensure that they are ready to comply.

On April 15, 2011, the United Kingdom’s Department for Culture, Media and Sport (“DCMS”) announced that the UK will adopt the new EU rules on cookies without “gold-plating” the regulations by imposing additional national requirements, to help ensure that British companies can compete with the rest of Europe.  As we previously reported, the UK government had reassured businesses that it would carry out the implementation in a manner that would minimize the impact on businesses and consumers.

On March 16, 2011, UK Information Commissioner Christopher Graham shared details of the government’s proposals for the implementation of the e-Privacy Directive with delegates at the Direct Marketing Association’s Data Protection Conference in London. A letter from the Minister for Culture, Communications and Creative Industries, Ed Vaizey, provides important reassurance to business that “Government is committed to introducing the amended provision in a way that minimises impacts to business and consumers.”

On March 8, 2011, the UK Information Commissioner’s Office (the “ICO”) issued a warning to UK businesses on the forthcoming amendments to the Privacy and Electronic Communications Directive (2002/58/EC as amended by 2009/136/EC) that will require businesses operating websites in the UK to obtain consent from website visitors to store information on their computers and retrieve that information in the form of cookies.

On February 18, 2011, the European Network and Information Security Agency (“ENISA”), an advisory body created to enhance information security in the EU, announced the issuance of its report on cookies, entitled “Bittersweet cookies.  Some security and privacy considerations.”

On January 12, 2011, Adobe Systems Incorporated (“Adobe”) announced in its Adobe Flash Platform Blog that it is working with browser vendors to integrate control features into browser user interfaces that will allow users to more easily control local shared objects (“LSOs”) on their computers.  Local shared objects, often referred to as Flash cookies, store information about online activity, including things like browsing history, login details and preferences.  In August 2010, we reported on several lawsuits that had been filed against online advertising networks for, among other things, using Flash cookies to re-create deleted browser cookies.

In a move toward implementation of the EU e-Privacy Directive, on November 3, 2010, the Dutch Minister of Economic Affairs submitted a bill to the Dutch Parliament that would amend the Dutch Telecommunications Act to obligate telecom and internet service providers to provide notification of data security breaches, and require consent for the use of cookies (the “Bill”).

The proposed Bill would require telecom and internet service providers to notify the Dutch Telecom Authority (the “OPTA”) without delay in the event of a security breach involving personal data.  They also would be required to notify affected individuals without delay if the breach is likely to have an adverse effect on the protection of their personal data.  The Bill does not affect initiatives to introduce a broader data breach notification regime applicable to other industries outside the telecom sector.  The Dutch Minister of Justice recently stated that he expects to issue a proposal to implement a more general data breach notification law in 2011.

On August 18, 2010, a complaint was filed in the U.S. District Court for the Central District of California, alleging that Specific Media, Inc. violated the Computer Fraud and Abuse Act, as well as state privacy and computer security laws, by failing to provide adequate notice regarding its online tracking practices.  The suit, brought by six web users, seeks class action status and over $5 million in damages, and cites Specific Media’s use of Flash cookies to re-create deleted browser cookies as one of the offending practices.