Insights on Privacy, Data Protection & Data Security

Earlier this month, Arent Fox counsel James Westerlind published an article with Mealey’s Emerging Insurance Disputes that details how cybersecurity risks are impacting insurance policies. 

The Network Advertising Initiative (NAI), an advertising industry trade group for third-party advertisers, recently released the 2015 update to its Mobile Application Code.

The FTC may start to scrutinize marketers that engage in cross-device tracking. Advertisers engaged in cross-device tracking should review their online disclosures to ensure that the tracking is adequately described.

Multinational businesses and EU member states are currently making ad hoc decisions to regulate data transfer to the US. To address the chaos, several EU data protection authorities have issued new guidance.

Banks are a key target for hackers, and finance hub New York aims to set first state regulations in this space. While the cyber regulatory landscape continues to shift, companies should constantly analyze and update security measures as compliance does not guarantee security.

The Federal Trade Commission has lost an important mechanism for privacy and data security enforcement in data flowing across the Atlantic with the invalidation of the Safe Harbor framework, according to Commissioner Julie Brill.

The decision caused international panic and businesses will be asked questions about their data protection practices. It is important to check where Safe Harbor is built into current agreements and evaluate both business-to-consumer and business-to-business relationships.

These action items will not only put you in a better position when a breach arises, but you will have the right answers when a regulator calls.

The EU’s top court could rule the Safe Harbor framework is ineffective to allow data to flow across the Atlantic and as companies await the Oct. 6 decision, they should consider other options for transfer of data from the EU to the US.

In a closely watched data collection case, Arent Fox LLP secured a victory for Lacoste when the California Supreme Court declined to clarify whether retailers in the state can ask customers for their personal information.

New York insurer Excellus BlueCross BlueShield became the most recent health care company to announce it was the victim of a sophisticated cyberattack after hackers gained access to the Social Security numbers, mailing addresses, and financial information of as many as 10 million customers.

On September 2-3, 2015, the U.S. Department of Health and Human Services, Office for Civil Rights (OCR) and the National Institute of Standards and Technology (NIST) hosted the 8th Annual Safeguarding Health Information: Building Assurance through HIPAA Security conference.

The US Department of Health and Human Services, Office for Civil Rights announced a new settlement for $750,000 with Cancer Care Group, P.C. to resolve potential violations of the HIPAA Privacy and Security Rules identified as the result of the theft of a laptop and backup media.

On May 20, 2015 the Bureau of Industry and Security (BIS) within the Department of Commerce (Commerce) published a proposed rule that will affect exports of products dubbed “cybersecurity items.”

On June 10, 2015, the U.S. Department of Health and Human Services, Office for Civil Rights, announced that it had entered into a resolution agreement with St. Elizabeth’s Medical Center, a Massachusetts hospital, to resolve potential HIPAA violations.

Beginning September 1, 2015, many companies that engage in mobile advertising will be subject to a new level of scrutiny by industry watch dogs.

The FBI and United States Justice Department announced a joint investigation into the front-office of the St. Louis Cardinals, one of baseball’s top teams for the last two decades, for allegedly hacking into the internal networks of rival Houston Astros to steal proprietary player information.

There is a split among circuit courts over whether a company faced with a privacy breach is subject to liability where a consumer suffers no discernible harm.

The United States District Court in Nevada issued an Order on June 1, 2015 dismissing the complaint filed by alleged victims of a data security breach suffered by Amazon.com d/b/a Zappos.com (Zappos).

The Federal Trade Commission sent a new warning for companies engaged in geolocation tracking. Specifically, the FTC recently reached a settlement agreement with Nomi Technologies, a company that offers services allowing retailers to track the movements of customers in and around their stores.

A US Bankruptcy Judge recently approved the sale of a package of RadioShack’s intellectual property assets—including consumer data obtained from RadioShack customers—to General Wireless Inc., the hedge fund affiliate that acquired over 1,700 RadioShack stores in February.

The 2015 edition of Legal 500 US has rated 50 Arent Fox LLP attorneys as national leaders in their field. In addition, 15 of the firm’s practice areas were ranked among the best in the country.

A California appeals court recently held that a retailer does not violate California privacy law by collecting and recording birth dates of consumers who buy alcohol with credit cards.

Recently reported data breaches and security gaffes have sent many companies scrambling to secure their data against security breaches and to obtain adequate insurance coverage in the event that such a breach occurs.

A California appeals court recently held in Ambers v. Beverages & More, Inc. that retailers are permitted under state law to request customers’ personal information when goods are purchased online but picked up in person.