Privacy & Information Security Law Blog

On December 14, 2016, the FTC announced that the operating companies of the AshleyMadison.com website (collectively, the “Operators”) have settled with the FTC and a coalition of state regulators over charges that the Operators deceived consumers and failed to protect users’ personal information. The FTC worked with a coalition of 13 states, the Office of the Privacy Commissioner of Canada and the Office of the Australian Information Commissioner to resolve this matter, which was initiated in the wake of the website’s July 2015 data breach.

On November 30, 2016, the FTC released a staff summary (the “Summary”) of a public workshop called Putting Disclosures to the Test. The workshop, which was held on September 15, 2016, examined ways of testing and evaluating company disclosures regarding advertising claims and privacy practices. The Summary reviews the workshop and its key takeaways.

On February 29, 2016, the European Commission issued the legal texts that will implement the EU-U.S. Privacy Shield. These texts include a draft adequacy decision from the European Commission, Frequently Asked Questions and a Communication summarizing the steps that have been taken in the last few years to restore trust in transatlantic data flows.

The agreement in support of the new EU-U.S. transatlantic data transfer framework, known as the EU-U.S. Privacy Shield, was reached on February 2, 2016, between the U.S. Department of Commerce and the European Commission. Once adopted, the adequacy decision will establish that the safeguards provided when transferring personal data pursuant to the new EU-U.S. Privacy Shield are equivalent to the EU data protection standards. In addition, the European Commission has stated that the new framework reflects the requirements that were set forth by the Court of Justice of the European Union (the “CJEU”) in the recent Schrems decision.

On October 26, 2015, the Federal Trade Commission (“FTC”) issued a press release on the Global Privacy Enforcement Network (“GPEN”) Alert, a new multilateral information sharing system that would allow participating agencies to share information relating to an investigation in order to facilitate better cross-border coordination. The FTC, along with agencies from seven other nations, signed a Memorandum of Understanding at the 37th International Conference of Data Protection and Privacy Commissioners in Amsterdam. FTC Chairwoman Edith Ramirez stated that the “GPEN Alert is an important, practical cooperation tool that will help GPEN authorities protect consumer privacy across the globe.” Australia, Canada, Ireland, The Netherlands, New Zealand, Norway and the United Kingdom join the U.S. in their efforts to coordinate global consumer privacy protection.

On April 7, 2015, the FTC announced proposed settlements with TES Franchising, LLC, an organization specializing in business coaching, and American International Mailing, Inc., an alternative mail transporting company, related to charges that the companies falsely claimed they were compliant with the U.S.-EU and U.S.-Swiss Safe Harbor Frameworks.

On March 9, 2015, the Federal Trade Commission announced that it has entered into a Memorandum of Understanding (the “Memorandum”) with the Dutch Data Protection Authority (the “Dutch DPA”).

On January 27, 2015, the Federal Trade Commission announced the release of a report on the Internet of Things: Privacy and Security in a Connected World (the “Report”). The Report describes the current state of the Internet of Things, analyzes the benefits and risks of its development, applies privacy principles to the Internet of Things and discusses whether legislation is needed to address this burgeoning area. The Report follows a workshop by the FTC on this topic in November 2013.

On January 6, 2015, Federal Trade Commission Chairwoman Edith Ramirez gave the opening remarks on “Privacy and the IoT: Navigating Policy Issues” at the 2015 International Consumer Electronics Show (“International CES”) in Las Vegas, Nevada. She addressed the key challenges the Internet of Things (“IoT”) poses to consumer privacy and how companies can find appropriate solutions that build consumer trust.

On July 10, 2014, the Federal Trade Commission announced that it filed a complaint against Amazon.com, Inc. (“Amazon”) for failing to obtain the consent of parents or other account holders prior to billing them for in-app charges incurred by children. According to the complaint, Amazon, which offers children’s apps through its Appstore, bills Amazon account holders in real money for virtual items that children obtain within an app (i.e., “in-app” charges).

On November 19, 2013, the Federal Trade Commission held a workshop in Washington, D.C. to discuss The Internet of Things: Privacy & Security in a Connected World. FTC Chair Edith Ramirez and FTC Senior Attorney Karen Jagielski provided the opening remarks. Chairwoman Ramirez raised three key issues for workshop participants to consider:

On September 4, 2013, the Federal Trade Commission announced a settlement with TRENDnet, Inc. (“TRENDnet”) stemming from allegations that TRENDnet’s failure to provide reasonable security for its Internet Protocol (“IP”) security cameras allowed hackers to publicly post online live feeds from approximately 700 customers’ cameras. As the FTC noted in its press release, “this is the agency’s first action against a marketer of an everyday product with interconnectivity to the Internet and other mobile devices – commonly referred to as the ‘Internet of Things.’”

On June 17, 2013, the Federal Trade Commission announced that FTC Chair Edith Ramirez has appointed Jessica Rich as Director of the Bureau of Consumer Protection. Rich has served in several leadership roles in the FTC’s Bureau of Consumer Protection during her 20-year tenure with the agency. Most recently, she served as Associate Director of the Division of Financial Practices.

On February 28, 2013, a White House official confirmed that President Obama will nominate Edith Ramirez as Chair of the Federal Trade Commission. Ramirez, who has served as an FTC Commissioner since April 2010, will replace outgoing Chairman Jon Leibowitz, who announced his departure earlier this month.

Prior to being nominated to the FTC in 2010, Ramirez worked as an attorney in private practice, focusing on litigation and antitrust issues. Ramirez has been an active participant in the Asia-Pacific Economic Cooperation Data Privacy Subgroup and the development of the APEC ...

On July 14, 2011, the U.S. House of Representatives Energy and Commerce Committee convened a joint hearing of the Subcommittee on Commerce, Manufacturing and Trade (chaired by Rep. Mary Bono Mack (R-CA)), and the Subcommittee on Communications and Technology (chaired by Rep. Greg Walden (R-OR)), to launch a comprehensive review of Internet privacy.  The series of hearings began with testimony from officials representing three agencies with jurisdiction over consumer privacy issues: FTC Commissioner Edith Ramirez, FCC Chairman Julius Genachowski, and Department of Commerce Assistant Secretary for Communications and Information Lawrence Strickling.

Julie Brill and Edith Ramirez took their oaths of office on April 5 and 6, 2010, completing the Federal Trade Commission’s roster of five commissioners and facilitating the Commission’s new tougher stance on privacy.  As we previously reported, Ms. Brill and Ms. Ramirez were confirmed by the U.S. Senate on March 3, 2010.  There are now three Democrats and two Republicans on the Commission.

Last year, when the Commission was comprised of one Democrat, two Republicans, an independent and a vacant seat, FTC Chairman Jon Leibowitz announced an aggressive agenda for the Commission, including a “privacy re-think.”  The new Democratic majority will make it easier to advance that agenda through recommendations to Congress, responses to market requests for greater self regulation and the approach taken with respect to enforcement cases.

On March 3, 2010, the Senate unanimously confirmed the nominations of Julie Brill and Edith Ramirez to serve as FTC Commissioners for seven-year terms.  Most recently, Ms. Brill has served as Deputy Attorney General for Consumer Protection and Antitrust for the State of North Carolina.  She was formerly Assistant Attorney General for Consumer Protection and Antitrust for the State of Vermont and has served as Chair of the Committee on Privacy for the National Association of Attorneys General.  Edith Ramirez is a partner at Quinn Emanuel Urquhart Oliver & Hedges, LLP in Los Angeles ...