On April 4, 2023, the data protection regulator of the UK, the Information Commissioner’s Office (ICO), issued a fine of a £12.7 million to TikTok Information Technologies UK Limited and TikTok Inc (together, “TikTok”) for a number of breaches of UK data protection law, including failing to use children’s personal data lawfully.
On Monday, March 27, 2023, the Centre for Information Policy Leadership (CIPL) at Hunton Andrews Kurth submitted a response to the California Privacy Protection Agency (CPPA)’s Invitation for Preliminary Comments on Proposed Rulemaking for cybersecurity audits, risk assessments and automated decisionmaking.
On March 6 and 15, 2023, both chambers of the Iowa Legislature unanimously voted to approve Senate File 262, which could make Iowa the sixth U.S. state to enact comprehensive privacy legislation. The bill is most similar to Utah’s comprehensive privacy law.
On March 15, 2023, the UK Information Commissioner’s Office (“ICO”) published an updated version of its guidance on AI and data protection (the “updated guidance”), following requests from UK industry to clarify requirements for fairness in AI.
On March 8, 2023, the UK Secretary of State for Science, Innovation and Technology, Michelle Donelan, introduced the Data Protection and Digital Information (No. 2) Bill to UK Parliament. The first version of the reform bill was originally proposed by the UK government in July 2022, but was put on pause during September 2022.
On March 7, 2023, the Irish Data Protection Commission (“DPC”) published its Annual Report for 2022 (the “Report”). The Report contains details on several areas of the DPC’s work, including complaints from data subjects received by the DPC, personal data breach notifications received by the DPC and statutory inquiries conducted by the DPC.
On March 2, 2023, the FTC announced a proposed order against BetterHelp, Inc., an online mental health counseling service, for sharing consumer data, including sensitive mental health information, with third parties for targeted advertising and other purposes. The FTC’s proposed order is notable, in that it is the first such order that would return funds to consumers whose health data was affected.
On February 24, 2023, Representative Patrick T. McHenry of North Carolina introduced a bill proposing the creation of the Data Privacy Act of 2023. The bill proposes to amend the Gramm-Leach-Bliley Act (“GLBA”) by making the following changes:
On March 2, 2023, the Biden-Harris Administration announced the release of the National Cybersecurity Strategy.
On February 28, 2023, the Colorado Office of the Attorney General announced that revised draft Colorado Privacy Act (“CPA”) rules were adopted for review by the Colorado Attorney General prior to finalization and publication in the Colorado Register.
On February 24, 2023, following public consultation, the European Data Protection Board (EDPB) published the following three sets of adopted guidelines:
- Guidelines on the Interplay between the application of Article 3 and the provisions on international transfers as per Chapter V GDPR (05/2021) (final version);
- Guidelines on certification as a tool for transfers (07/2022) (final version); and
- Guidelines on deceptive design patterns in social media platform interfaces (03/2022) (final version).
On February 17, 2023, the Illinois Supreme Court issued an opinion in Cothron v. White Castle Systems, Inc., in response to a certified question from the Seventh Circuit, ruling that the plain language of Section 15(b) and 15(d) of the Illinois Biometric Privacy Act (“BIPA”) shows that a claim accrues under BIPA with every scan or transmission of biometric identifiers or biometric information without prior informed consent.
On February 20, 2023, in the case of Experian Limited v The Information Commissioner, the First-Tier Tribunal in the UK (the “Tribunal”) ruled on the ICO’s action to require Experian to make changes to how it processes personal data for direct marketing purposes. While the Tribunal supported the ICO in certain respects, it largely ruled in favor of Experian and issued a Substituted Decision Notice, as detailed further below.
As previously posted in our Hunton Employment & Labor Perspectives blog, on January 10, 2023, the Equal Employment Opportunity Commission (“EEOC”) published a draft of its Strategic Enforcement Plan (“SEP”) in the Federal Register, which outlines the EEOC’s enforcement goals for the next four years. While the EEOC aims to target a number of new areas – such as underserved workers and pregnancy fairness in the workplace – it is notable that it listed as priority number one the elimination of barriers in recruitment and hiring caused or exacerbated by employers’ use of artificial intelligence (“AI”).
On February 9, 2023, the Court of Justice of the European Union (“CJEU”) issued its judgment in the X-FAB Dresden case (C-453/21). In this decision, the CJEU clarified the criteria for assessing whether a conflict of interest exists between the Data Protection Officer (“DPO”) position, and other tasks or duties assigned to the DPO.
On February 2, 2023, the Illinois Supreme Court reversed in part and remanded a judgment of the lower appellate court in a class action lawsuit alleging violation of the Illinois Biometric Information Privacy Act (“BIPA”).
On January 4, 2023, the Irish Data Protection Commission (“DPC”) announced the conclusion of two inquiries into the data processing practices of Meta Platforms, Inc. (“Meta”) with respect to the company’s Instagram and Facebook platforms. As a result of the investigations, the DPC fined Meta a combined €390 million for breaches of the EU General Data Protection Regulation (“GDPR”) and, following consultation with the European Data Protection Board (“EDPB”), notably held that Meta can no longer rely on the GDPR’s “performance of a contract” legal basis for processing personal data in the behavioral advertising context, a decision that has broad implications for publishers engaged in behavioral advertising in the EU.
On January 10, 2023, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth responded to a call for public comments from the European Data Protection Board (“EDPB”) regarding their Recommendations 1/2022 on the Application for Approval and on the elements and principles to be found in Controller Binding Corporate Rules (Art. 47 GDPR) (“Recommendations 1/2022”). The Recommendations 1/2022 are intended to bring existing Controller Binding Corporate Rules (“BCR-C”) in line with the GDPR and the Schrems II ruling.
On January 16, 2023, the Directive on measures for a high common level of cybersecurity across the Union (the “NIS2 Directive”) and the Directive on the resilience of critical entities (“CER Directive”) entered into force. The NIS2 Directive repeals the current NIS Directive and creates a more extensive and harmonized set of rules on cybersecurity for organizations carrying out their activities within the European Union. The CER Directive repeals the European Critical Infrastructure Directive and brings with it new, stronger rules for the cyber and physical resilience of critical entities and networks.
On January 11, 2023, the Belgian Data Protection Authority (“Belgian DPA”) announced that it has approved the Interactive Advertising Bureau Europe’s (“IAB Europe”) action plan with respect to its Transparency and Consent Framework (“TCF”).
On January 10, 2023, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP and Cisco’s Privacy Center of Excellence published a joint report on “Business Benefits of Investing in Data Privacy Management Programs” (the “Report”). The Report provides insights into how several leading global companies realize value from privacy management programs and demonstrates that organizations are experiencing a wide range of risk and compliance benefits as well as other tangible benefits from investing time, money, effort and other resources into building their privacy programs.
On December 21, 2022, the Colorado Attorney General published an updated version of the draft rules to the Colorado Privacy Act (“CPA”). The draft, which follows the first iteration of the proposed rules published on October 10, 2022, solicits comments on five topics: (1) new and revised definitions; (2) the use of IP addresses to verify consumer requests; (3) a proposed universal opt-out mechanism; (4) streamlining the privacy policy requirements; and (5) bona fide loyalty programs.
On December 20, 2022, the English High Court has granted the victim of a cyber attack a permanent injunction against cyber attackers whilst the victim organization maintains its anonymity. Generally, a claimant's identity is public in English court proceedings. Injunctions can be made against unknown and unidentifiable defendants enabling them to be granted against individuals who are acting in breach or threatening to commit a breach.
On December 19, 2022, the Federal Trade Commission announced two settlements, amounting to $520 million, with Epic Games, Inc. in connection with alleged violations of the Children’s Online Privacy Protection Act Rule (the “COPPA Rule”) and alleged use of “dark patterns” relating to in-game purchases.
On December 13, 2022, the European Commission launched the process for the adoption of an adequacy decision for the EU-U.S. Data Privacy Framework. If adopted, the long-awaited adequacy decision will provide EU companies transferring personal data to the U.S. with an additional mechanism to legitimize their transfers.
An adequacy decision would foster trans-Atlantic data flows and address the concerns raised by the Court of Justice of the European Union (“CJEU”) judgment in the Schrems II case.
On November 25, 2022, Ireland’s Data Protection Commission (“DPC”) released a decision fining Meta Platforms, Inc. (“Meta”) €265 million for a 2019 data leak involving the personal information of approximately 533 million Facebook users worldwide.
The UK Information Commissioner’s Office (“ICO”) recently published a package of detailed guidance and checklists for direct marketing activities. The ICO’s new webpage on direct marketing now includes various resources, including specific guidance for SMEs, business-to-business marketing, and organizations using the marketing services of data brokers, as well as direct marketing FAQs and checklists, and a training module for businesses.
On November 22, 2022, the Court of Justice of the European Union (“CJEU”) determined in a preliminary ruling that the general public’s access to information on beneficial ownership constitutes a serious interference with the fundamental rights to respect for private life and to the protection of personal data, enshrined in Articles 7 and 8 of the Charter of Fundamental Human Rights (the “Charter”).
On November 23, 2022, the UK government’s Department for Digital, Culture, Media & Sport (“DCMS”) announced that it had completed its assessment of South Korea’s personal data legislation, and concluded that sufficiently strong privacy laws are in place to protect UK personal data transferred to South Korea while upholding the rights and protections of UK citizens.
Kochhar & Co. reports that, on November 18, 2022, the Government of India (“Government”) released the long-awaited fourth draft of India’s proposed privacy law, now renamed the Digital Personal Data Protection Bill.
Terms and Application
The draft law uses terminology similar to past versions: the data controller is called the “data fiduciary,” the data subject is called the “data principal,” and personal information is referred to as “personal data.” There is no separate category of sensitive personal data.
SHIFT Counsellors at Law reports from Indonesia that The People’s Representative Council of the Republic of Indonesia has ratified Indonesia’s draft law on personal data protection. The draft law came into effect on October 17, 2022. The law, which is partly modeled on the EU General Data Protection Regulation, is Indonesia’s first “umbrella regulation” on personal data protection. The law will provide certain protections to Indonesian citizens’ data, and provide more legal certainty to parties processing such data.
On November 2, 2022, the ICO issued to the UK Department for Education (“DfE”) a formal reprimand following an investigation into the sharing of personal data stored on the Learning Records Service (“LRS”), a database which provides a record of pupils’ qualifications that the DfE has overall responsibility for. The investigation found that the DfE’s poor due diligence meant the LRS database was being used by Trust Systems Software UK Ltd (trading as Trustopia), a third party screening firm, to check whether people opening online gambling accounts were 18. Trustopia was found to have had access from September 2018 to January 2020, during which it performed over 20,000 searches on children whose personal data was in the LRS database.
On October 31, 2022, the Federal Trade Commission announced a proposed settlement with education technology provider Chegg in connection with the company’s alleged poor cybersecurity practices.
On October 1, 2022, the Colorado Attorney General’s Office submitted an initial draft of the Colorado Privacy Act Rules (“CPA Rules”), which will implement and enforce the Colorado Privacy Act (“CPA”). The CPA Rules, which are currently about 38 pages, address many recent issues in state data privacy regulation, including data profiling, data protection, automated data processing, biometric data, universal opt-out mechanisms and individual data rights.
On October 24, 2022, the New York City Department of Consumer and Worker Protection (“DCWP”) proposed rules to implement its new law regarding automated employment decision tools (“AEDTs”).
On October 24, 2022, the Federal Trade Commission announced a proposed consent order with Drizly, an online alcohol ordering and delivery service, and the company’s CEO, for the alleged failure to maintain appropriate security safeguards that led to a data breach that affected 2.5 million consumers’ personal information.
On October 20, 2022, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth published a white paper entitled Protecting Children’s Data Privacy, Policy Paper I, International Issues and Compliance Challenges. The paper identifies and explores the key issues and challenges that organizations and data protection authorities face in the context of globally divergent legal standards and policy approaches relating to children’s data.
On September 23, 2022, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth submitted a response to the UK Department for Digital, Culture, Media & Sport (“DCMS”) on its Consultation on establishing a pro-innovation approach to regulating AI (the “Response”).
On October 17, 2022, the French Data Protection Authority (the “CNIL”) imposed a €20 million fine on Clearview AI for unlawful use of facial recognition technology. The fine was imposed after the CNIL’s prior formal notice remained unaddressed by Clearview AI.
On October 18, 2022, the New York State Department of Financial Services (“NYDFS”) announced that EyeMed Vision Care LLC (“EyeMed”) agreed to a $4.5 million settlement for violations of the Cybersecurity Regulation (23 NYCRR Part 500) that contributed to the exposure of hundreds of thousands of consumers’ health data in connection with a cybersecurity event in 2020.
On October 12, 2022, New York Attorney General Letitia James announced that her office had secured a $1.9 million penalty from e-commerce retailer Zoetop, owner of SHEIN and ROMWE, following an improperly handled data breach. The Office of the Attorney General of the State of New York (“NYAG”) alleged in its Assurance of Discontinuance that Zoetop failed to properly handle the breach and lied about its scope to consumers.
On September 27, 2022, California Governor Gavin Newsom signed into law a pair of bills designed to prevent medical information and other data held by California entities from being used in out-of-state abortion prosecutions.
On September 26, 2022, the UK Information Commissioner’s Office (“ICO”) confirmed in a statement that it issued TikTok Inc. and TikTok Information Technologies UK Limited (together, “TikTok”) a notice of intent to potentially impose a £27 million fine for failing to protect children’s privacy. This notice of intent follows an investigation by the ICO finding that TikTok may have breached UK data protection law between May 2018 and July 2020 by failing to protect children’s privacy when using the TikTok platform.
On September 21, 2022, Denmark’s data protection authority Datatilsynet (“Danish DPA”) announced its guidance that Google Analytics, Google’s audience measurement tool, is not compliant with the EU General Data Protection Regulation (“GDPR”), as the tool transfers personal data to the United States which, following Schrems II, does not offer an adequate level of data protection.
On September 20, 2022, Indonesia’s parliament ratified the Personal Data Protection Act (the “Act”). The Act is the first comprehensive data protection law to be enacted in Indonesia and will come into effect on a date set by the Minister of State Secretariat. Organizations subject to the Act will have two years to come into compliance with the Act’s requirements.
On September 15, 2022, California Governor Gavin Newsom signed into law the California Age-Appropriate Design Code Act (the “Act”). The Act, which takes effect July 1, 2024, places new legal obligations on companies with respect to online products and services that are “likely to be accessed by children” under the age of 18.
On September 5, 2022, the Irish Data Protection Commissioner (the “DPC”) imposed a €405,000,000 fine on Instagram (a Meta-owned social media platform) for violations of the EU General Data Protection Regulation’s (“GDPR’s”) rules on the processing of children’s personal data.
On July 7, 2022, the Cyberspace Administration of China (the “CAC”) issued the Measures on Security Assessment on Cross-border Transfer (the “Measures”), which became effective on September 1, 2022, and provide a six-month grace period to the relevant data handlers. On August 31, 2022, the CAC issued the Guidelines on Application for Security Assessment on Cross-border Transfer (the “Guidelines”), which further clarify certain issues and provide specific application documents for security assessments (including templates of application forms for security assessment on cross-border transfer and self-assessments report for risks of cross-border transfer).
On June 10, 2022, New York became the first state to require attorneys to complete at least one credit of cybersecurity, privacy and data protection training as part of their continuing legal education (“CLE”) requirements. The new requirement will take effect July 1, 2023.
On July 28, 2022, a federal judge approved TikTok’s $92 million class action settlement of various privacy claims made under state and federal law. The agreement will resolve litigation that began in 2019 and involved claims that TikTok, owned by the Chinese company ByteDance, violated the Illinois Biometric Information Privacy Act (“BIPA”) and the federal Video Privacy Protection Act (“VPPA”) by improperly harvesting users’ personal data. U.S. District Court Judge John Lee of the Northern District of Illinois also awarded approximately $29 million in fees to class counsel.
In July 2022, Maria Ostashenko from ALRUD Law Firm reports that the Russian Parliament passed, and the President of the Russian Federation signed into law, major reforms in data protection and information governance. The reforms include:
- Significant changes to Federal Law No. 152-FZ on Personal Data, including the scope of its application, new rules for cross-border transfer of personal data, data breach notifications, and additional protections for data subjects;
- New amendments to the Unified Biometric System regulations;
- Establishment of a countersanction-information ...
On July 22, 2022, T-Mobile entered into an agreement to settle a class action lawsuit stemming from its 2021 data breach. The breach involved the personal information of 76.6 million U.S. residents and was T-Mobile’s fifth breach over a four year period. The proposed settlement will require T-Mobile to pay $500 million to settle customers’ claims and to bolster its cybersecurity practices.
On July 7, 2022, the Irish Data Protection Commission (the “DPC”) sent a draft decision to other EU data protection authorities, proposing to block Meta’s transfers of personal data from the EU to the United States.
On June 30, 2022, the New York Office of the Attorney General (“NYOAG”) announced a $400,000 agreement with Wegmans Food Markets, Inc. (“Wegmans”) in connection with a cloud storage security issue. The NYOAG alleges that Wegmans exposed the personal information of three million consumers by storing the data in misconfigured cloud storage containers.
On July 8, 2022, President Biden issued an Executive Order titled, “Protecting Access to Reproductive Health Care Services,” in response to the Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization that overturned Roe v. Wade. The Executive Order aims, in part, to “ [p]rotect[] the privacy of patients and their access to accurate information” regarding reproductive health care services. It directs the Department of Health and Human Services (“HHS”) and the Federal Trade Commission to take certain steps to address the potential threat to patient privacy caused by the transfer and sale of sensitive health-related data, and by digital surveillance related to reproductive health care services from fraudulent schemes or deceptive practices.
On June 24, 2022, the New York State Department of Financial Services (“NYDFS” or the “Department”) announced it had entered into a $5 million settlement with Carnival Corp. (“Carnival”), the world’s largest cruise-ship operator, for violations of the Cybersecurity Regulation (23 NYCRR Part 500) in connection with four cybersecurity events between 2019 and 2021, including two ransomware events.
On June 23, 2022, Italy’s data protection authority (the “Garante”) determined that a website’s use of the audience measurement tool Google Analytics is not compliant with the EU General Data Protection Regulation (“GDPR”), as the tool transfers personal data to the United States, which does not offer an adequate level of data protection. In making this determination, the Garante joins other EU data protection authorities, including the French and Austrian regulators, that also have found use of the tool to be unlawful.
On June 21, 2022, the Colorado Attorney General’s Office announced it is seeking informal input from the public on its rulemaking related to the Colorado Privacy Act (“CPA”). Before starting its formal rulemaking process, the Office has indicated it wants to better “understand the community’s thoughts and concerns about data privacy.”
On June 10, 2022, the Centre for Information Policy Leadership at Hunton Andrews Kurth published a white paper entitled “Local Law Assessments and Online Services – Refining the Approach to Beneficial and Privacy-Protective Cross-Border Data Flows A: Case Study from British Columbia.” The paper discusses recent developments in British Columbia that demonstrated a recognition by law- and policy-makers of the importance of cross-border data flows to an efficient and effective public sector.
On June 3, 2022, House Energy and Commerce Chair Rep. Frank Pallone (D-NJ), Ranking Member Rep. Cathy McMorris Rodgers (R-WA) and Senate Commerce, Science and Transportation Committee Ranking Member Sen. Roger Wicker (R-MS) released a new comprehensive federal privacy bill, the American Data Privacy and Protection Act (“ADPPA”).
On June 1, 2022, Thailand’s Personal Data Protection Act (“PDPA”) entered into force after three years of delays. The PDPA, originally enacted in May 2019, provides for a one-year grace period, with the main operative provisions of the law originally set to come into force in 2020. Due to the COVID-19 pandemic, however, the Thai government issued royal decrees to extend the compliance deadline to June 1, 2022.
On May 10, 2022, as part of the Queen’s Speech, the UK government announced its intention to introduce a Data Reform Bill (the “Bill”). The UK government’s background and briefing notes to the Queen’s Speech state that the purpose of the Bill is to “take advantage of the benefits of Brexit to create a world class data rights regime…that reduces burdens on businesses, boosts the economy, helps scientists to innovate and improves the lives of people in the UK.”
On May 10, 2022, Connecticut Governor Ned Lamont signed An Act Concerning Personal Data Privacy and Online Monitoring, after the law was previously passed by the Connecticut General Assembly in April. Connecticut is now the fifth state to enact a consumer privacy law.
On April 11, 2022, Virginia Governor Glenn Youngkin signed into law three bills that amend the Virginia Consumer Data Protection Act (“VCDPA”) ahead of the VCDPA’s January 1, 2023 effective date. The bills, HB 381, HB 714 and SB 534, (1) add a new exemption to the VCDPA’s right to delete; (2) modify the VCDPA’s definition of “nonprofit”; and (3) abolish the Consumer Privacy Fund.
On April 12, 2022, Colorado Attorney General Phil Weiser made remarks at the International Association of Privacy Professionals Global Privacy Summit in Washington, D.C., where he invited stakeholders to provide informal public comments on the Colorado Privacy Act (“CPA”) rulemaking.
On April 11, 2022, Federal Trade Commission Chair Lina Khan spoke at the opening of the International Association of Privacy Professionals’ Global Privacy Summit. This speech marks Khan’s first major privacy address since her appointment last June.
On April 8, 2022, the New York Bar issued an opinion to protect “confidential” client identity information stored on an attorney’s smartphone. In particular, the opinion prohibits an attorney who stores “confidential” (as defined under Rule 1.6 of the New York Rules of Professional Conduct) client identity information in the attorney’s “contacts” folder on the attorney’s smartphone from consenting to share their “contacts” with a smartphone app, unless certain criteria are met.
On March 29 and March 30, 2022, the California Privacy Protection Agency (“CPPA”) held via video conference two public pre-rulemaking informational sessions regarding the California Privacy Rights Act (“CPRA”). During the sessions, members of the California Attorney General’s Office and various privacy and cybersecurity experts led discussions on topics such as the sale and sharing of personal information, dark patterns, data privacy impact assessments, cybersecurity audits and automated decision-making. The CPPA Board has not at this time responded to the views expressed by the experts at the meetings.
On February 28, 2022, the Emirate of Dubai enacted Law No. 4 of 2022 on the Regulation of Virtual Assets (“VAL”) and established the Dubai Virtual Assets Regulatory Authority (“VARA”). By establishing a legal framework for businesses related to virtual assets, including crypto assets and non-fungible tokens (NFTs), this landmark law reflects Dubai’s vision to become one of the leading jurisdictions for entrepreneurs and investors of blockchain technology.
On April 7, 2022, the European Data Protection Board (the “EDPB”) released a statement on the announcement of a new Trans-Atlantic Data Privacy Framework (the “Statement”).
On March 18, 2022, Indiana Governor Eric Holcomb signed into law an amendment to Indiana’s data breach notification statute. The amendment requires notification of a data breach to affected individuals and the Indiana Attorney General without unreasonable delay, but no later than forty-five (45) days after discovery of the breach. The amendment will take effect on July 1, 2022.
On January 18, 2022, New Jersey Governor Phil Murphy signed into law Assembly Bill No. 3950, requiring employers to provide written notice to employees prior to the use of tracking devices in vehicles used by employees (the “Act”). The Act will go into effect on April 18, 2022.
On March 25, 2022, the U.S. District Court for the Northern District of Illinois approved a $1.1 million settlement with TikTok Inc. (“TikTok”) to resolve claims that TikTok collected children’s data and sold it to third parties without parental consent. The plaintiffs sued TikTok in 2019, alleging that TikTok did not seek verifiable parental consent prior to collecting personal information of children under 13 on the popular video platform in violation of the Children’s Online Privacy Protection Act. The complaint further alleged that TikTok disclosed and sold user data, including lip-syncing videos created by children who used a TikTok-affiliated app called Musical.ly, to third parties, without parental consent. The $1.1 million settlement will be distributed among class members, who consist of U.S. users who, prior to the settlement’s effective date and while under the age of 13, registered for or used TikTok or Musical.ly.
On March 29 and March 30, 2022, the California Privacy Protection Agency (“CPPA”) will hold public pre-rulemaking informational sessions regarding the California Privacy Rights Act (“CPRA”) via video conference. As we previously reported, the CPPA, which has rulemaking authority under the CPRA and will be responsible for implementing and enforcing the CPRA, recently estimated that it will not publish final CPRA regulations until the third or fourth quarter of 2022.
On March 15, 2022, the Federal Trade Commission (FTC) announced a proposed settlement with custom merchandise platform CafePress in connection with the company’s alleged failure to implement reasonable security measures, and its alleged attempt to cover up a 2019 data breach. The proposed settlement would require CafePress to implement a comprehensive data security program and pay $500,000 in redress to affected individuals.
On March 24, 2022, Utah became the fourth state in the U.S., following California, Virginia and Colorado, to enact a consumer data privacy law, the Utah Consumer Privacy Act (the “UCPA”). The UCPA resembles Virginia’s Consumer Data Protection Act (“VCDPA”) and Colorado’s Consumer Privacy Act (“CPA”), and, to a lesser extent, the California Consumer Privacy Act (as amended by the California Privacy Rights Act) (“CCPA/CPRA”). The UCPA will take effect on December 31, 2023.
On February 18, 2022, California Assembly Member Evan Low (D) introduced a pair of bills – AB 2871 and AB 2891 – that would extend the duration of the current exemptions in the California Consumer Privacy Act (“CCPA”) (as amended by the California Privacy Rights Act (“CPRA”)) for certain HR data and business-to-business (“B2B”) customer representative personnel data from most of the law’s requirements. The existing temporary “HR” and “B2B” exemptions were first introduced through amendments to the CCPA, and were extended by the CPRA, under which the exemptions will sunset on the CPRA’s compliance deadline, January 1, 2023.
The Federal Trade Commission has reached a settlement with WW International, Inc. and Kurbo, Inc. over allegations the companies improperly registered children for the “Kurbo by WW” online weight loss management program. In pleadings filed on February 16, 2022, in federal court in the Northern District of California, the FTC claims WW and Kurbo offered a service that was tailored for children but that failed to ensure parental involvement in the registration process. According to the FTC, the defendants created an age gate that children could easily evade, and that ...
On January 28, 2022, in celebration of Data Privacy Day, the Colorado Attorney General’s Office issued prepared remarks from Colorado Attorney General Phil Weiser and published guidance on data security best practices. In his remarks, Attorney General Weiser highlighted the importance of protecting data security and outlined his office’s plans for implementing the Colorado Privacy Act (“CPA”), which takes effect July 1, 2023.
On January 12, 2022, the French Data Protection Authority (the “CNIL”) published guidelines on the re-use of personal data by data processors for their own purposes (such as product improvement or the development of new products and services) under the EU General Data Protection Regulation (“GDPR”) (the “Guidelines”). This post outlines key takeaways from the Guidelines.
Stephen Mathias from Kochhar & Co. reports that on December 16, 2021, the Indian Joint Parliamentary Committee (the “JPC”) submitted its report on India’s draft Data Protection Bill (the “Bill”). The Bill is now likely to be passed by Parliament in its next session, beginning in February 2022, and likely will enter into force in the first half of 2022. In its report, the JPC recommended a phased approach to implementing the law, beginning with the appointment of various government officers, such as the Data Protection Authority (“DPA”), with full implementation of the law to be completed within 24 months. The JPC’s report also contained a revised draft of the Bill. Certain key aspects of the revised Bill are summarized below.
On November 19, 2021, the European Data Protection Board (“EDPB”) published its draft Guidelines 05/2021 (the “Guidelines”) on the interplay between the application of Article 3 of the EU General Data Protection Regulation (“GDPR”), which sets forth the GDPR’s territorial scope, and the GDPR’s provisions on international data transfers. The Guidelines aim to assist organizations subject to the GDPR in identifying whether a data processing activity constitutes an international data transfer under the GDPR, as the GDPR does not define the term.
On November 5, 2021, IAB Europe (“IAB EU”) announced that, in the coming weeks, the Belgian Data Protection Authority plans to share with other data protection authorities a draft ruling on the IAB EU Transparency & Consent Framework (“TCF”). The TCF is a GDPR consent solution built by IAB EU that has become a widely used approach to collecting consent to cookies under the GDPR. The draft ruling is expected to find that the TCF does not comply with the GDPR, in part because IAB EU acts as a controller, and the digital signals the TCF creates to capture individuals’ consent to cookies are personal data under the GDPR. Because IAB EU does not consider itself a controller with respect to the TCF, it does not currently comply with the GDPR’s controller obligations.
On November 10, 2021, the UK Supreme Court issued its long-awaited judgment in the Lloyd v Google case. The decision is expected to make it difficult in practice for a future class action lawsuit that is brought on behalf of a class of individuals who have not actively opted in to being represented by the lead claimant to proceed under UK law.
Beginning in 2022, Apple and Google will impose new privacy requirements on mobile apps available for download in the Apple App Store and Google Play Store, respectively. As described further below, Apple’s new account deletion requirement will apply to all mobile app submissions to the Apple App Store beginning January 31, 2022. Similarly, Google’s new Data Safety section will launch in February 2022, and app developers will be required to submit to the Google Play Store Data Safety forms and Privacy Policies by April 2022.
On October 29, 2021, the Cyberspace Administration of China (“CAC”) released for public comment “Draft Measures on Security Assessment of Cross-border Data Transfer” (“Draft Measures”). The CAC, in its third legislative attempt to build a cross-border data transfer mechanism in China, issued the Draft Measures three days before the November 1, 2021 effective date of the Personal Information Protection Law (“PIPL”).
During the week of October 4, 2021, California Governor Gavin Newsom signed into law bills amending the California Privacy Rights Act of 2020 (“CPRA”), California’s data breach notification law and California’s data security law. Additional bills, amending the California Confidentiality of Medical Information Act (“CMIA”) and the California Insurance Code, also were also signed into law. The Governor also signed into law a bill protecting the privacy and security of genetic data processed by direct-to-consumer genetic testing companies and a bill designed to prevent the sale, purchase and use of data obtained by illegal means.
On October 12, 2021, the Oxford County Court determined that a homeowner had breached the Data Protection Act 2018 (“DPA”) and UK General Data Protection Regulation (“UK GDPR”) by using Ring security cameras around his property. In Dr Mary Fairhurst v Mr Jon Woodard, Fairhurst claimed harassment, nuisance and breach of UK data protection law based on her former neighbor, Woodard’s, use of security cameras and lights around his property. While the claim in nuisance failed, the judge found for the claimant on the claims of harassment and breach of data protection law.
On August 29, 2021, a New York City Council bill amending the New York City Administrative Code to address customer data collected by food delivery services from online orders became law after the 30-day period for the mayor to sign or veto lapsed. Effective December 27, 2021, the law will permit restaurants to request customer data from third-party food delivery services and require delivery services to provide, on at least a monthly basis, such customer data until the restaurant “requests to no longer receive such customer data.” Customer data includes name, phone number, email address, delivery address and contents of the order.
On August 16, 2021, the U.S. Securities and Exchange Commission (“SEC”) announced that Pearson plc (“Pearson”), a publicly traded British multinational educational publishing and services company, agreed to pay a $1 million civil penalty in a settlement related to charges that Pearson misled investors about a 2018 data breach resulting in the theft of millions of student records. The SEC’s order found that Pearson made material misstatements and omissions about the data breach in a report furnished to the SEC and in a media statement.
On August 25, 2021, New Mexico Attorney General (“AG”) Hector Balderas sued Rovio Entertainment (“Rovio” or the “Company”), the developer of the popular Angry Birds mobile app games, alleging that the Company violated the federal Children’s Online Privacy Protection Act (“COPPA”) by knowingly collecting data from players under age 13 and sharing it with advertisers. Under COPPA, developers of child-directed apps are required to provide notice to parents of their data collection practices and obtain verifiable parental consent to collect personal information from children under 13.
On August 20, 2021, China’s 13th Standing Committee of the National People’s Congress passed the Personal Information Protection Law (the “PIPL”). As we previously reported, the PIPL is China’s first comprehensive data protection law. It is modeled, in part, on other jurisdictions’ omnibus data protection regimes, including the EU General Data Protection Regulation (“GDPR”). The PIPL will become effective on November 1, 2021. Below are some of the key provisions under the PIPL.
On August 2, 2021, the Italian Data Protection Authority (Garante per la protezione dei dati personali, “Garante”) announced that it had levied a €2,500,000 fine on Deliveroo Italy s.r.l. for the unlawful processing of personal data of approximately 8,000 Deliveroo riders, and various infringements of the EU Genera Data Protection Regulation (the “GDPR”).
On July 16, 2021, the Luxembourg data protection authority (Commission nationale pour la protection des donées, “CNPD”) imposed a record-breaking €746 million fine on Amazon Europe Core S.à.r.l. for alleged violations of the EU General Data Protection Regulation (“GDPR”). The CNPD also ordered Amazon to revise certain of its practices. As Amazon has its EU headquarters in Luxembourg, the CNPD acts as Amazon’s lead supervisory authority in the EU.
On June 16, 2021, the UK Government’s Taskforce on Innovation, Growth and Regulatory Reform published an independent report containing recommendations to the Prime Minister on how the UK can reshape its approach to regulation in the wake of Brexit (the “Report”). Among wide-ranging proposals across a range of areas, the Report recommends replacing the UK General Data Protection Regulation (“UK GDPR”) with a new UK Framework of Citizen Data Rights. The proposed approach would aim to give individuals greater control over their personal data while also allowing increased data flows and driving growth in the digital economy. The Report will be considered by the Government’s Better Regulation Committee.
On June 4, 2021, the European Commission published the final version of the implementing decision on standard contractual clauses for transfers of personal data to third countries under the EU General Data Protection Regulation (“GDPR”), as well as the final version of the new standard contractual clauses (the “SCCs”). The European Commission had previously published draft versions of the implementing decision and the SCCs in November 2020.
On June 3, 2021, Google informed app developers that beginning in late 2021, when Android 12 OS users opt out of personalized ads, the advertising ID provided by Google Play services (the Google Ad ID, or “GAID”) will not be made available to app developers for any purpose.
On May 27, 2021, the European Data Protection Supervisor (the “EDPS”) announced that it has opened two investigations regarding (1) the use of cloud services provided by Amazon Web Services and Microsoft under Cloud II contracts by European Union institutions, bodies and agencies; and (2) the use of Microsoft Office 365 by the European Commission.
On May 26, 2021, the Court of Appeal handed down its judgment in the case of R (Open Rights Group and the3million) v Secretary of State for the Home Department and Others [2021] EWCA Civ 800, finding that the UK 2018 Data Protection Act’s (“DPA 2018”) “immigration exemption” is unlawful.
On May 12, 2021, the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, the “Dutch DPA”) imposed a €525,000 fine on Locatefamily.com for failure to comply with the obligation imposed under Article 27 of the EU General Data Protection Regulation (“GDPR”) to appoint a representative in the EU.
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