Privacy & Information Security Law Blog

On July 28, 2020, German supervisory authorities (Datenschutzkonferenz, the “DSK”) issued a statement reiterating the requirement for additional safeguards when organizations rely on Standard Contractual Clauses (“SCCs”) or Binding Corporate Rules (“BCRs”) for the transfer of personal data to third countries in the wake of the Court of Justice of the European Union’s (the “CJEU”) invalidation of the Privacy Shield Framework. In its July 16, 2020 judgment, the CJEU concluded that SCCs issued by the European Commission for the transfer of personal data to data processors established outside of the EU are valid, subject to the need to assess whether additional safeguards are required depending on the recipient jurisdiction. In this same decision, the CJEU struck down the EU-U.S. Privacy Shield Framework.

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 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 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.

In a case that has garnered widespread interest, the Court of Justice of the European Union (“CJEU”) will deliver its judgment in the Schrems II case (case C-311/18) on July 16, 2020, determining the validity of the controller–to-processor Standard Contractual Clauses (“SCCs”) as a cross-border data transfer mechanism under the EU General Data Protection Regulation (“GDPR”). If the SCCs are invalidated, the judgment would deliver a significant blow to the numerous businesses that rely on them, leaving many scrambling to find a suitable alternative transfer mechanism. Even if the SCCs survive, they may become more cumbersome to use.

On July 9, 2020, the European Commission (the “Commission”) adopted a Communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled: “Getting ready for changes – Communication on readiness at the end of the transition period between the European Union and the United Kingdom” (the “Communication”).

On June 26, 2020, New Zealand Justice Minister Andrew Little announced that the bill to repeal and replace New Zealand’s existing Privacy Act 1993 (the “Privacy Bill”) had passed its third reading in Parliament. The Privacy Bill received royal assent on June 30, 2020.

On July 1, 2020, the Dubai International Financial Centre (“DIFC”) Data Protection Law No. 5 of 2020 came into effect (“New DP Law”). Due to the current pandemic, a three-month grace period, running until October 1, 2020, has been provided for companies to comply. The New DP Law replaces DIFC Law No. 1 of 2007. The release of the New DP Law is, in part, an effort to ensure that the DIFC, a financial hub for the Middle East, Africa and South Asia, meets the standard of data protection required to receive an “adequacy” finding from the European Commission and the United Kingdom, meaning that companies may transfer EU/UK personal data to the DIFC without putting in place a transfer mechanism (such as Standard Contractual Clauses).

When compared to the EU or the U.S., China has lacked a comprehensive data protection and data security law that regulates in detail requirements and procedures relating to the collection, processing, control and storage of personal data. In recent years, China has seen developments on data protection both in legislation and in practice. Recently, another significant draft law on data security was issued by the Chinese legislative authority. On June 28 to June 30, 2020, the 20th Session of the 13th Standing Committee of the National People’s Congress of China (the “NPC”) deliberated on the draft of the Data Security Law (the “Draft”), and on July 3, published the Draft on the NPC’s official website for public comment. The public comment period for the Draft will end on August 16, 2020. It is expected that the Draft will be finalized within the year and that the regulatory requirements relating to data security eventually will be reflected in law in China.

On June 16, 2020, the European Data Protection Board (the “EDPB”) released a statement on the data protection impact of the interoperability of contact tracing apps within the EU (the “Statement”). The EDPB issued this Statement following the publication of “Interoperability guidelines for approved contact tracing mobile applications in the EU” by the eHealth Network on May 13, 2020. In its guidelines, the eHealth Network calls for an interoperable framework in the EU that would enable users to rely on a single contact tracing application regardless of the Member State or region in which they reside.

The Court of Justice of the European Union (“CJEU”) has announced via its Twitter feed that it will deliver its judgement in the Schrems II case (case C-311/18) on July 16, 2020. This judgement will determine the validity of the Standard Contractual Clauses (“SCCs” or Model Clauses) as a transfer mechanism under the General Data Protection Regulation (“GDPR”). SCCs are relied on by many global companies, including Facebook and Microsoft, for international transfers of EU personal data.

Pakistan’s Ministry of Information Technology and Telecommunication recently introduced a new draft of Pakistan’s Personal Data Protection Bill, 2020 (the “Bill”) and launched a public consultation regarding the same. The public consultation period will end on May 15, 2020. The Bill, which applies to “any person who processes” or “has control over or authorizes the processing of” any personal data, if the data subject, the controller or processor are located in Pakistan, would establish certain requirements and restrictions related to the processing of personal data, as well as penalties for violating the law. In addition, under the Bill, the federal government would, within six months of coming into force, establish a Personal Data Protection Authority of Pakistan with rulemaking authority to enforce the act.

On April 30, 2020, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, along with Senators John Thune (SD), Jerry Moran (KS) and Marsha Blackburn (TN), announced plans to introduce the COVID-19 Consumer Data Protection Act of 2020 (“the bill”), which would put temporary rules in place regarding the collection, processing and transfer of data used to combat the spread of the coronavirus. The bill would only apply during the course of the COVID-19 Public Health Emergency as declared by the Secretary of Health and Human Services, and would only apply to specific uses of certain personal data.

On April 16, 2020, the Centre for Information Policy Leadership (“CIPL”), in collaboration with the Centro de Estudos de Direito, Internet e Sociedade of Instituto Brasiliense de Direito Público (“CEDIS-IDP”), published a White Paper (the “White Paper”) on the Role of the Brazilian Data Protection Authority (“ANPD”) under Brazil’s New Data Protection Law (“LGPD”). The White Paper is accompanied by two infographics: 1) the priorities of the Agência Nacional de Proteção de Dados, and 2) the case for an effective Brazil DPA - the ANPD.

On April 21, 2020, the European Data Protection Board (“EDPB”) adopted Guidelines on the processing of health data for scientific purposes in the context of the COVID-19 pandemic. The aim of the Guidelines is to provide clarity on the most urgent matters relating to health data, such as legal basis for processing, the implementation of adequate safeguards and the exercise of data subject rights.

On March 31, 2020, the Federal Trade Commission (“FTC”) announced that it will hold a workshop on data portability on September 22, 2020. Data portability allows consumers to obtain a copy of the data an organization holds about them (e.g., emails, photos, contacts, calendar, social media content), in a format that can easily be downloaded and transferred to another entity or to themselves. Data portability has been embraced as a consumer right in the EU General Data Protection Regulation (“GDPR”), California Consumer Privacy Act (“CCPA”), and several recent privacy bills at both the state and federal level.

On March 9, 2020, the APEC Cross-Border Privacy Rules (“CBPR”) system Joint Oversight Panel approved the Philippines’ application to join the APEC CBPR system. The Philippines becomes the ninth APEC economy to join the CBPR system, joining the United States, Mexico, Canada, Japan, South Korea, Singapore, Chinese Taipei and Australia.

The International Trade Administration at the U.S. Department of Commerce recently announced that NCC Group has been approved as a U.S. Accountability Agent under the APEC Cross-Border Privacy Rules (“CBPR”) system. NCC Group joins TrustArc and Schellman as the third U.S. Accountability Agent under the CBPR and the sixth Accountability Agent approved under the system overall. NCC Group will now be able to independently assess and certify the compliance of U.S. companies under the APEC CBPR system and under the APEC Privacy Recognition for Processors (“PRP”), a corollary system to the CBPR specifically for processors.
On March 19, 2020, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP published a Q&A on the APEC CBPR and PRP systems. The Q&A is designed to explain the workings of both systems, who is currently participating in them and how interested companies can certify.

The outbreak of COVID-19 has dramatically changed the economy and working landscape of the United States and many other countries across the world. Companies suddenly find themselves dealing with a host of privacy issues and questions about sharing information with employees, customers and others. In addition, transitioning to a remote workforce can create privacy and data security concerns.

On March 12, 2020, Senator Jerry Moran (KS) introduced a comprehensive federal privacy bill entitled the Consumer Data Privacy and Security Act of 2020 (the “Act”).

Hunton’s Centre for Information Policy Leadership (“CIPL”) reports on the top privacy-related priorities for this year:

1.  Global Convergence and Interoperability between Privacy Regimes

Around the world, new privacy laws are coming into force and outdated laws continue to be updated: the EU General Data Protection Regulation (“GDPR”), Brazil’s Lei Geral de Proteção de Dados Pessoais (“LGPD”), Thailand’s Personal Data Protection Act, India’s and Indonesia’s proposed bills, California’s Consumer Privacy Act (“CCPA”), and the various efforts in the rest of the United States at the federal and state levels. This proliferation of privacy laws is bound to continue.

On March 5, 2020 the Cybersecurity Law Report will host a webinar with panelists, Hunton Andrews Kurth LLP partner Bridget Treacy and Refinitiv’s chief privacy officer Vivienne Artz, on the General Data Protection Regulation’s (“GDPR”) territorial scope entitled, “Gauging GDPR’s Global Reach.” This webinar will explore the global effect of the GDPR in both the digital and geographic arenas.

On January 16, 2020, the Federal Trade Commission announced that settlements with five companies of separate allegations that they had falsely claimed certification under the EU-U.S. Privacy Shield framework had been finalized.

On December 19, 2019, the Advocate General of the Court of Justice of the European Union (the “CJEU”) handed down his opinion in the so-called “Schrems II” case (case C-311/18). He recommended that the CJEU uphold the validity of the Standard Contractual Clauses (“SCCs”) as a mechanism for transferring personal data outside of the EU. Given that SCCs are the key data transfer mechanism used by many organizations to transfer personal data outside of the EU, the opinion has far-reaching repercussions and will be welcomed by businesses across the globe.

On December 11, 2019, an updated version of India’s draft data privacy bill was introduced in the Indian Parliament (the “Draft Bill”) by the Ministry of Electronics and Information Technology (“MeitY”). The Draft Bill updates a prior version submitted to MeitY in July 2018.

As reported by Russian law firm Alrud, on November 21, 2019, the Russian State Duma passed a bill (the “Bill”) that would increase the minimum fines that may be imposed for violations of Russia’s data protection laws. The Bill would allow for maximum administrative fines of 18 million RUB (approximately $282,000 USD) for violations of Russia’s data localization requirement, which requires entities processing personal data of Russian citizens to process that data in databases located within the territory of Russia. This represents a significant departure from the maximum administrative fines that may be imposed for other data protection violations in Russia as it is significantly higher than other potential penalties.

On November 13, 2019, the European Data Protection Board (“EDPB”) published its draft guidelines 4/2019 (the “Guidelines”) on the obligation of Data Protection by Design and by Default (“DPbDD”) set out under Article 25 of the EU General Data Protection Regulation (“GDPR”).

On November 19, 2019, the Federal Trade Commission announced that Medable, Inc. (“Medable”) agreed to settle allegations that the company had misrepresented its participation in the EU-U.S. Privacy Shield program. The FTC alleged that, from December 2017 to October 2018, Medable falsely claimed in its online privacy policy that it was a certified participant in the EU-U.S. Privacy Shield framework and adhered to the framework’s principles. According to the complaint, although Medable did initiate an application with the Department of Commerce in December 2017, the company never completed the steps necessary to participate in the framework.

On October 22, 2019, the drafting group of China’s National Information Security Standardization Technology Committee (“NISSTC”) released a third set of draft amendments to the Information Security Technology - Personal Information Security Specification (GB/T 35273 – 2017) (the “Updated Draft Specification”). The original Specification, first issued on December 29, 2017, became effective May 1, 2018, and saw earlier draft amendments on February 1, 2019 and June 25, 2019. The NISSTC received more than 400 public comments on the proposed June amendments. The latest draft amendment was issued without a public comment period.

On September 23, 2019, the Office of the Privacy Commissioner of Canada (“OPC”) announced that it completed its consultation on transfers for processing and that the OPC’s current guidelines for processing personal data across borders remain unchanged. Under these guidelines, consent for transfers to data processors generally is not required.

On September 20, 2019, the Philippines National Privacy Commission (“NPC”) announced it has filed its notice of intent to join the APEC Cross-Border Privacy Rules (“CBPR”) system. The Philippines would be the ninth member of the CBPR system, joining the U.S., Mexico, Canada, Japan, South Korea, Singapore, Australia and Chinese Taipei.

Ecuador is seeking to pass a data protection bill in the wake of a massive data breach that resulted in the personal data of up to 20 million people being made available online. According to reports, the bill draws on the EU General Data Protection Regulation (“GDPR”) in certain ways—for example, as relates to international data transfers—but diverges in other respects. The data protection bill headed to Ecuador’s national assembly today.

On September 10, 2019, the French data protection authority (the “CNIL”) updated its existing set of questions and answers (“FAQs”) on the impact of a no-deal Brexit on data transfers from the EU to the UK and how controllers should prepare.

On August 7, 2019, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP issued a white paper titled Key Issues Relating to Standard Contractual Clauses for International Transfers and the Way Forward for New Standard Contractual Clauses under the GDPR (the “White Paper”). The White Paper was submitted to the European Commission as part of its ongoing work to update EU Standard Contractual Clauses for international transfers (“SCCs”).

On July 23, 2019, APEC issued a press release announcing the recent appointment of the Infocomm Media Development Authority (“IMDA”) as Singapore’s Accountability Agent for the APEC Cross-Border Privacy Rules (“CBRP”) and APEC Privacy Recognition for Processors (“PRP”). This makes Singapore the third APEC economy that has fully operationalized its participation in the CBPR system, following the United States, which has two CBPR Accountability Agents, and Japan, which has one CBPR Accountability Agent.

On July 9, 2019, the European Data Protection Board (the “EDPB”) adopted Opinion 8/2019 on the Competence of a Supervisory Authority in Case of a Change in Circumstances Relating to the Main or Single Establishment (the “Opinion”) at the request of the French and the Swedish data protection authorities (“DPAs”).

Background – The French and Swedish DPAs’ Initial Request

On July 9, 2019, the hearing in the so-called Schrems II case (case C-311/18) took place at the Court of Justice of the European Union (“CJEU”) in Luxembourg. The main parties involved in the proceedings, the Irish Data Protection Commissioner (“Irish DPA”), Facebook Ireland Ltd. and the Austrian activist Max Schrems, presented their arguments to the court. In addition, a number of other stakeholders intervened during the hearing, including representatives of the European Parliament, the European Commission, the European Data Protection Board, several EU Member States (including Austria, France, Germany, Ireland, the Netherlands and the UK) and the U.S. government, as well as a number of industry lobby groups and the Electronic Privacy Information Center.

On June 14, 2019, the Federal Trade Commission announced that it has taken action against a number of companies that allegedly misrepresented their compliance with the EU-U.S. and Swiss-U.S. Privacy Shield frameworks (collectively, the “Privacy Shield”) and other international privacy agreements.

On June 13, 2019, the Cyberspace Administration of China (the “CAC”) released Draft Measures on Security Assessment of Cross-Border Transfer of Personal Information (“Draft Measures”) for public comment, the window for which ends July 13, 2019.

On May 31, 2019, the Asia-Pacific Economic Cooperation (“APEC”) endorsed Schellman & Company as the second U.S. “Accountability Agent” overseeing the APEC Cross-Border Privacy Rules (“CBPR”) and Privacy Recognition for Processors (“PRP”) systems. Along with TrustArc, Schellman & Company will now be able to independently assess and certify the compliance of U.S. companies under the APEC CBPR and PRP systems.

On June 12, 2019, Hunton Andrews Kurth and its Centre for Information Policy Leadership (“CIPL”) hosted a roundtable discussion in the firm’s Brussels office on the update of the EU Standard Contractual Clauses for international data transfers (“SCCs”). More than 30 privacy leaders joined together to discuss the challenges of the current SCCs and provide their insights on the updated versions. Hunton partner David Dumont led the discussion, while CIPL President Bojana Bellamy illuminated CIPL’s work in this area. The session also featured Cristina Monti, Policy Officer in the International Data Flows and Protection Unit of the EU Commission DG Justice and Consumers.

On May 28, 2019, the Cyberspace Administration of China (“CAC”) released draft Data Security Administrative Measures (the “Measures”) for public comment. The Measures, which, when finalized, will be legally binding, supplement the Cybersecurity Law of China (the “Cybersecurity Law”) that took force on June 1, 2017, with detailed and practical requirements for network operators who collect, store, transmit, process and use data within Chinese territory. The Measures likely will significantly impact network operators’ compliance programs in China.

On June 12, 2019, Hunton Andrews Kurth and its Centre for Information Policy Leadership (“CIPL”) will host a roundtable discussion in the firm’s Brussels office on the update of the EU Standard Contractual Clauses for international data transfers. The seminar will feature Ms. Cristina Monti, Policy Officer in the International Data Flows and Protection Unit of the EU Commission DG Justice and Consumers. Participants will:

On May 24, 2019, the Cyberspace Administration of China (the “CAC”), together with eleven other relevant government authorities, jointly released the draft Cybersecurity Review Measures for public comment. The deadline for public comment is June 24, 2019.

On May 27, 2019, Thailand’s Personal Data Protection Act B.E. 2562 (A.D. 2019) (the “PDPA”), which was passed by the National Legislative Assembly on February 28, 2019, was finally published in the Government Gazette, and thus became effective on May 28, 2019. Although now effective, the main operative provisions concerning personal data protection (including requests for data subjects’ consent; collection/use and disclosure of personal data; rights of data subjects; complaints; civil liabilities and penalties) will not come into force until one year after their ...

As reported by Bloomberg Law, on May 24, 2019, the Office of the Privacy Commissioner of Canada (the “OPC”) suspended its public consultation on transborder data flows (the “Consultation”). The suspension follows the announcement of the Digital Charter by the Canadian government, which puts forward principles for digital reform, including improvements to Canadian privacy law.

On April 12, 2019, the European Data Protection Board (“EDPB”) published draft guidelines 2/2019 on the processing of personal data in the context of the provision of online services to data subjects (the “Guidelines”).

On January 25, 2019, Nigeria’s National Information Technology Development Agency (“NITDA”) issued the Nigeria Data Protection Regulation 2019 (the “Regulation”). Many concepts of the Regulation mirror the EU General Data Protection Regulation (“GDPR”).

On March 28, 2019, the French data protection authority (“CNIL”) published a “Model Regulation” addressing the use of biometric systems to control access to premises, devices and apps at work. The Model Regulation lays down binding rules for data controllers who are subject to French data protection law and process employee biometric data for such purposes. The CNIL also released a related set of questions and answers (“FAQs”).

On February 28, 2019, Thailand’s National Legislative Assembly finally approved and endorsed the draft Personal Data Protection Act (the “PDPA”), which will now be submitted for royal endorsement and subsequent publication in the Government Gazette. Publication is anticipated to occur within the next few weeks.

On February 26, 2019, the European Data Protection Board (the “EDPB”) presented its first overview of the GDPR’s implementation and the roles and means of the national supervisory authorities to the European Parliament (the “Overview”).

The Overview provides key statistics relating to the consistency mechanism among national data protection authorities (“DPAs”), the cooperation mechanism of the EDPB, the means and powers of the DPAs and enforcement of the GDPR at the national level.

During the week of February 25, 2019, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP participated in the meetings of the APEC Data Privacy Subgroup (“DPS”) and Electronic Commerce Steering Group (“ECSG”) in Santiago, Chile. CIPL enjoys formal guest status and a seat at the table at these bi-annual APEC privacy meetings.

On February 20, 2019, the French data protection authority (the “CNIL”) published a set of questions and answers (“FAQs”) indicating the CNIL’s recommendations, and steps that organizations should take, to prepare for a no-deal Brexit. The CNIL’s FAQs build upon guidance the European Data Protection Board (“EDPB”) provided in its Information Note on Data Transfers under the GDPR in the Event of a No-Deal Brexit.

On February 12, 2019, the European Data Protection Board (the “EDPB”) released its work program for 2019 and 2020 (the “Work Program”). Following the EDPB’s endorsement of the Article 29 Working Party guidelines and continued guidance relating to new EU General Data Protection Regulation (“GDPR”) concepts, the EDPB plans to shift its focus to more specialized areas and technologies.

At its plenary meeting on February 13, 2019, in Brussels, the European Data Protection Board (“EDPB”) adopted an Information Note on Data Transfers under the GDPR in the Event of a No-Deal Brexit, and an Information Note on BCRs for Companies Which Have ICO as BCR Lead Supervisory Authority.

On January 22, 2019, the European Data Protection Board (“EDPB”) issued a report on the Second Annual Review of the EU-U.S. Privacy Shield (the “Report”). Although not binding on EU or U.S. authorities, the Report provides guidance to regulators in both jurisdictions regarding implementation of the Privacy Shield and highlights the EDPB’s ongoing concerns with regard to the Privacy Shield. We previously blogged about the European Commission’s report on the second annual review of the Privacy Shield, and the joint statement of the European Commission and Department of Commerce regarding the second annual review.

On January 15, 2019, the UK House of Commons rejected the draft Brexit Withdrawal Agreement negotiated between the UK Prime Minister and the EU by a margin of 432-202. While the magnitude of the loss sets in motion a process which could potentially have resulted in an early general election being held, on January 16 a majority of British Members of Parliament rejected a vote of no confidence in Theresa May’s government.

On December 21, 2018, the Irish Data Protection Commission (the “DPC”) published preliminary guidance on data transfers to and from the UK in the event of a “no deal” Brexit (the “Guidance”). The Guidance is relevant for any Irish entities that transfer personal data to the UK, including Northern Ireland.

On December 20, 2018, the Department of Commerce updated its frequently asked questions (“FAQs”) on the EU-U.S. and Swiss-U.S. Privacy Shield Frameworks (collectively, the “Privacy Shield”) to clarify the effect of the UK’s planned withdrawal from the EU on March 29, 2019. The FAQs provide information on the steps Privacy Shield participants must take to receive personal data from the UK in reliance on the Privacy Shield after Brexit.

On December 19, 2018, the European Commission (the “Commission”) issued a press release regarding the publication of the Commission’s second annual review of the functioning of the EU-U.S. Privacy Shield (the “Report”).

The Agency of Access to Public Information (Agencia de Acceso a la Información Pública) (“AAIP”) has approved a set of guidelines for binding corporate rules (“BCRs”), a mechanism that multinational companies may use in cross-border data transfers to affiliates in countries with inadequate data protection regimes under the AAIP.

On November 23, 2018, both Australia and Chinese Taipei joined the APEC Cross-Border Privacy Rules (“CBPR”) system. The system is a regional multilateral cross-border transfer mechanism and an enforceable privacy code of conduct and certification developed for businesses by the 21 APEC member economies.

On November 29, 2018, the French Data Protection Authority (the “CNIL”) launched an online public consultation regarding two new CNIL draft standards (“Referentials”) concerning the processing of personal data to manage (1) business activities and (2) unpaid invoices. 

On November 9, 2018, Serbia’s National Assembly enacted a new data protection law. The Personal Data Protection Law, which becomes effective on August 21, 2019, is modeled after the EU General Data Protection Regulation (“GDPR”).

On November 23, 2018, the European Data Protection Board (“EDPB”) published its long-awaited draft guidelines on the extraterritorial application of the EU General Data Protection Regulation (“GDPR”) (the “Guidelines”). To date, there has been a degree of uncertainty for organizations regarding the scope of the GDPR’s application outside of the EU. While the Guidelines provide some clarity on this issue, questions will remain for non-EU controllers and processors. Importantly, these Guidelines are only in draft form and are open for consultation until January 18, 2019, which will give organizations an opportunity to provide comments and raise additional questions in an effort to obtain further clarification from the EDPB on these important scoping questions.

On October 19, 2018, European Commissioner for Justice, Consumers and Gender Equality Věra Jourová and U.S. Secretary of Commerce Wilbur Ross issued a joint statement regarding the second annual review of the EU-U.S. Privacy Shield framework, taking place in Brussels beginning October 18. The statement highlights the following:

On September 30, 2018, the U.S., Mexico and Canada announced a new trade agreement (the “USMCA”) aimed at replacing the North American Free Trade Agreement. Notably, the USMCA’s chapter on digital trade recognizes “the economic and social benefits of protecting the personal information of users of digital trade” and will require the U.S., Canada and Mexico (the “Parties”) to each “adopt or maintain a legal framework that provides for the protection of the personal information of the users[.]” The frameworks should include key principles such as: limitations on collection, choice, data quality, purpose specification, use limitation, security safeguards, transparency, individual participation and accountability.

Recently, the French Data Protection Authority (“CNIL”) published its initial assessment of the compatibility of blockchain technology with the EU General Data Protection Regulation (GDPR) and proposed concrete solutions for organizations wishing to use blockchain technology when implementing data processing activities.

On September 26, 2018, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP submitted formal comments to the Indian Ministry of Electronics and Information Technology on the draft Indian Data Protection Bill 2018 (“Draft Bill”).

On September 25, 2018, the French Data Protection Authority (the “CNIL”) published the first results of its factual assessment of the implementation of the EU General Data Protection Regulation (GDPR) in France and in Europe. When making this assessment, the CNIL first recalled the current status of the French legal framework, and provided key figures on the implementation of the GDPR from the perspective of privacy experts, private individuals and EU supervisory authorities. The CNIL then announced that it will adopt new GDPR tools in the near future. Read the full factual assessment (in French).

Recently, the UK Information Commissioner's Office (“ICO”) fined credit rating agency Equifax £500,000 for failing to protect the personal data of up to 15 million UK individuals. The data was compromised during a cyber attack that occurred between May 13 and July 30, 2017, which affected 146 million customers globally. Although Equifax’s systems in the U.S. were targeted, the ICO found the credit agency's UK arm, Equifax Ltd, failed to take appropriate steps to ensure that its parent firm, which processed this data on its behalf, had protected the information. The ICO investigation uncovered a number of serious contraventions of the UK Data Protection Act 1998 (the “DPA”), resulting in the ICO imposing on Equifax Ltd the maximum fine available.

On September 5, 2018, the European Commission (the “Commission”) announced in a press release the launch of the procedure to formally adopt the Commission’s adequacy decision with respect to Japan.

Recently, the Department of Commerce updated its frequently asked questions (“FAQs”) on the EU-U.S. and Swiss-U.S. Privacy Shield Frameworks (collectively, the “Privacy Shield”) to provide additional clarification on a wide range of topics, including transfers of personal information to third parties, the application of the Privacy Shield Principles to data processors, and the relation of the Clarifying Lawful Overseas Use of Data Act (“CLOUD Act”) to the Privacy Shield. Certain key insights from the updated FAQs are outlined below:

• Data processors. When ...

On July 31, 2018, the Supreme Court of Ireland granted Facebook, Inc.’s (“Facebook”) leave to appeal a lower court’s ruling sending a privacy case to the Court of Justice of the European Union (the “CJEU”). Austrian privacy activist Max Schrems challenged Facebook’s data transfer practices, arguing that Facebook’s use of standard contractual clauses failed to adequately protect EU citizens’ data. Schrems, supported by Irish Data Protection Commissioner Helen Dixon, argued that the case belonged in the CJEU, the EU’s highest judicial body. The High Court agreed. Facebook’s request to appeal followed.

On July 10, 2018, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP submitted formal comments to the European Data Protection Board (the “EDPB”) on its draft guidelines on certification and identifying certification criteria in accordance with Articles 42 and 43 of the GDPR (the “Guidelines”). The Guidelines were adopted by the EDPB on May 25, 2018, for public consultation.

On July 12, 2018, British Prime Minister Theresa May presented her Brexit White Paper, “The Future Relationship Between the United Kingdom and the European Union,” (the "White Paper”) to Parliament. The White Paper outlines the UK’s desired future relationship with the EU post-Brexit, and includes within its scope important data protection-related issues, including digital trade, data flows, cooperation for the development of Artificial Intelligence (“AI”), and the role of the Information Commissioner’s Office (“ICO”), as further discussed below:

On July 17, 2018, the European Union and Japan successfully concluded negotiations on a reciprocal finding of an adequate level of data protection, thereby agreeing to recognize each other’s data protection systems as “equivalent.” This will allow personal data to flow safely between the EU and Japan, without being subject to any further safeguards or authorizations. 

During the week of June 25, 2018, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP hosted its annual executive retreat in San Francisco, California. The annual event consisted of a closed pre-retreat session for CIPL members, a CIPL Panel at the APPA Forum Open session followed by a CIPL reception and dinner and a special all day workshop with data protection commissioner members of the Asia Pacific Privacy Authorities (“APPA”) on Accountable AI.

On July 5, 2018, the European Parliament issued a nonbinding resolution (“the Resolution”) that calls on the European Commission to suspend the EU-U.S. Privacy Shield unless U.S. authorities can “fully comply” with the framework by September 1, 2018. The Resolution states that the data transfer mechanism does not provide the adequate level of protection for personal data as required by EU data protection law. The Resolution takes particular aim at potential access to EU residents’ personal data by U.S. national security agencies and law enforcement, citing the passage of the CLOUD Act as having “serious implications for the EU, as it is far-reaching and creates a potential conflict with the EU data protection laws.”

On July 3, 2018, a draft bill (the “Data Protection Bill”) was introduced that would establish a comprehensive data protection regime in Kenya. The Data Protection Bill would require “banks, telecommunications operators, utilities, private and public companies and individuals” to obtain data subjects’ consent before collecting and processing their personal data. The Data Protection Bill also would impose certain data security obligations related to the collection, processing and storage of data, and would place restrictions on third-party data ...

On July 2, 2018, the Federal Trade Commission announced that California company ReadyTech Corporation (“ReadyTech”) agreed to settle FTC allegations that ReadyTech misrepresented it was in the process of being certified as compliant with the EU-U.S. Privacy Shield (“Privacy Shield”) framework for lawfully transferring consumer data from the European Union to the United States. The FTC finalized this settlement on October 17, 2018.

On May 30, 2018, the European Data Protection Board (“EDPB”), replacing the Article 29 Working Party, published the final version of Guidelines 2/2018 on derogations in the context of international data transfers and draft Guidelines 1/2018 on certification under the EU General Data Protection Regulation (“GDPR”). 

On March 20, 2018, the Centre for Information Policy Leadership ("CIPL") at Hunton Andrews Kurth LLP issued a factsheet outlining relevant GDPR provisions for negotiations surrounding the proposed ePrivacy Regulation (the "Factsheet").

On March 26, 2018, the U.S. Department of Commerce posted an update on the actions it has taken between January 2017 and March 2018 to support the EU-U.S. and Swiss-U.S. Privacy Shield Frameworks (collectively, the “Privacy Shield”). The update details measures taken in support of commercial and national security issues relating to the Privacy Shield.

On March 26, 2018, the Centre for Information Policy Leadership at Hunton & Williams LLP and AvePoint released its second Global GDPR Readiness Report (the “Report”), detailing the results of a joint global survey launched in July 2017 concerning organizational preparedness for implementing the EU General Data Protection Regulation (“GDPR”). The Report tracks the GDPR implementation efforts of over 235 multinational organizations, and builds on the findings of the first Global GDPR Readiness Report by providing insights on key changes in readiness levels from 2016 to 2017.

On March 6, 2018, Singapore’s Ministry of Communications and Information announced that Singapore has joined the APEC Cross-Border Privacy Rules (“CBPR”) and Privacy Recognition for Processors (“PRP”) systems. As we previously reported, Singapore submitted its intent to join both systems in July 2017.

Recently, the EU’s Article 29 Working Party (”Working Party”) held a plenary meeting to discuss, among other things, the implementation of the EU General Data Protection Regulation (“GDPR”) and the EU-U.S. Privacy Shield. As well as adopting its first Joint Annual Review Report on the Privacy Shield, the Working Party has been working on a number of documents that offer review and/or guidance on the GDPR, including:

• guidelines on (1) consent and transparency, (2) data protection certifications, and (3) derogations for personal data transfers under the GDPR;
• updated “referentials” on adequacy and binding corporate rules for data controllers and processors; and
• tools for cooperation between data protection authorities on data breach notifications.

On November 23, 2017, the Australian Attorney-General’s Department announced that it will move forward with an application to participate in the APEC Cross Border Privacy Rules (“CBPR”) system. The announcement follows comments received from a July 2017 consultation by the Australian Government regarding the implications of Australia’s possible participation in the system. Over the next months, the Attorney-General’s Department will work with the Office of the Australian Information Commissioner and businesses to implement the CBPR system requirements.

On November 20, 2017, the UK Information Commissioner’s Office (“ICO”) published an article on its blog containing advice on applications for Binding Corporate Rules (“BCRs”) to comply with requirements under the EU General Data Protection Regulation (“GDPR”). BCRs, which are one of the legal mechanisms available to support transfers of personal data outside the EEA, are codified under the GDPR, prompting a number of companies to explore the possibility of applying for BCR authorization. In its article, the ICO stressed that it will continue to accept applications for BCRs in the lead up to GDPR implementation on May 25, 2018, and beyond, and that the UK’s exit from the European Union, currently scheduled for the end of March 2019, will not result in the cancellation of any of the approximately 40 BCR applications currently being considered by the ICO.

On November 8, 2017, the United States District Court for the Northern District of California ordered German defendants in an ongoing patent suit, BrightEdge Technologies, Inc. v. Searchmetrics GmbH, to produce a particular database, despite the defendants’ claims that such production would violate German privacy laws.

The Centre for Information Policy Leadership at Hunton & Williams LLP (“CIPL”) recently submitted responses to the Irish Data Protection Commissioner (IDPC Response) and the CNIL (CNIL Response) on their public consultations, seeking views on transparency and international data transfers under the EU General Data Protection Regulation (“GDPR”).

The responses address a variety of questions posed by both data protection authorities (“DPAs”) and aim to provide insight on and highlight issues surrounding transparency and international transfers.

On October 18, 2017, the EU Commission (“Commission”) released its report and accompanying working document on the first annual review of the EU-U.S. Privacy Shield framework (collectively, the “Report”). The Report states that the Privacy Shield framework continues to ensure an adequate level of protection for personal data that is transferred from the EU to the U.S. It also indicates that U.S. authorities have put in place the necessary structures and procedures to ensure the proper functioning of the Privacy Shield, including by providing new redress possibilities for EU individuals and instituting appropriate safeguards regarding government access to personal data. The Report also states that Privacy Shield-related complaint-handling and enforcement procedures have been properly established.

On October 4, 2017, the Article 29 Working Party (the “Working Party”) revised and adopted the final version of the Guidelines on data protection impact assessments (DPIA) and determining whether processing is “likely to result in a high risk” for the purposes of Regulation 2016/679 (the “Guidelines”). The Guidelines were first published for comment on April 4, 2017, and the final publication of these revised Guidelines follows the public consultation that ended in May 2017.

On September 29, 2017 the French Data Protection Authority (CNIL) published a guide for data processors to implement the new obligations set by the EU General Data Protection Regulation (“GDPR”). The guidance addresses the extended scope of the GDPR and the new and direct obligations data processors will have when the GDPR comes into force on May 25, 2018. The guidance elaborates a three-step checklist for data processors:

On October 3, 2017, the Irish High Court referred a legal challenge to the validity of the EU Standard Contractual Clauses (“SCCs”) to the Court of Justice of the European Union (“CJEU”) for resolution. Max Schrems, who had previously successfully challenged the validity of the now defunct U.S.-EU Safe Harbor Program in the Schrems case, had brought a similar claim in relation to the SCCs, and had requested that the Irish Data Protection Commissioner (“DPC”) declare that the SCCs do not provide sufficient protection when personal data is transferred outside the EU to the US and thus are invalid. The Irish DPC declined to make such a ruling, but instead referred the case to the Irish High Court, and requested that the case be referred to the CJEU for a final decision on the validity of the SCCs.

Last week, the Centre for Information Policy Leadership (“CIPL”) and several privacy team members at Hunton & Williams LLP attended the 39th International Conference of Data Protection and Privacy Commissioners in Hong Kong (the “Conference”). The weeklong event hosted by Stephen Kai-yi Wong, Privacy Commissioner for Personal Data, Hong Kong was attended by over 3000 privacy professionals from data protection authorities (“DPAs”), industry and research sectors. CIPL hosted two events at the conference, as well as a joint roundtable with Hunton & Williams and Citibank, throughout the week.

On September 19, 2017, the French Data Protection Authority (“CNIL”) launched an online public consultation on two topics identified by the Article 29 Working Party (“Working Party”) in its 2017 action plan for the implementation of the EU General Data Protection Regulation (“GDPR”). These two topics are transparency and international data transfers.