New Jersey Courts Issue Conflicting Rulings in ZIP Code Collection Cases

Posted on October 18, 2011 by Hunton & Williams LLP

Last month, two New Jersey judges issued opposing decisions in class action lawsuits regarding merchants’ point-of-sale ZIP code collection practices. The conflicting orders leave unanswered the question of whether New Jersey retailers are prohibited from requiring and recording customers’ ZIP codes at the point of sale during credit card transactions.

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Connecticut Restricts Employer Access to Employee Credit Reports

Posted on July 29, 2011 by Hunton & Williams LLP

As reported in the Hunton Employment & Labor Perspectives Blog, Connecticut recently became the latest state to pass a law regulating employer use of credit reports. The law, which goes into effect on October 1, 2011, prohibits employers from requiring employees or prospective employees to consent to the employer requesting their credit report as a condition of employment.  The full post includes a discussion of the exceptions to this restriction.

Read our previous posts on regulatory scrutiny of employee credit checks and a similar Illinois law that went into effect on January 1, 2011.

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PCI Data Security Standards Council Provides Cloud Compliance Guidelines

Posted on June 21, 2011 by Hunton & Williams LLP

On June 14, 2011, the PCI Security Standards Council’s Virtualization Special Interest Group published its “Information Supplement: PCI DSS Virtualization Guidelines”(the “Guidelines”) to Version 2.0 of the PCI Data Security Standard (“PCI DSS”).  The Guidelines provide context for the application of the PCI DSS to cloud and other virtual environments, and offer at least three critical reminders:

  • the PCI DSS applies to cloud environments without exception; 
  • critical analysis of the application of the PCI DSS to rapidly evolving cloud offerings is essential to compliance; and
  • cloud providers must be prepared to document and contract for necessary controls.

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SEC Announces Penalties Against Executives for Privacy Violations

Posted on April 8, 2011 by Hunton & Williams LLP

On April 7, 2011, the Securities and Exchange Commission announced a settlement involving three former brokerage firm executives charged with “failing to protect confidential information about their customers.”  According to the announcement, “this is the first time that the SEC has assessed financial penalties against individuals charged solely with violations of Regulation S-P.”  Regulation S-P mandates that financial firms safeguard their customers’ confidential information and prevent its release to unaffiliated third parties without authorization.

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China Issues New Measures to Protect Credit Card Holders

Posted on March 18, 2011 by Hunton & Williams LLP

On January 13, 2011, the China Banking Regulatory Commission issued Measures for the Supervision and Administration of the Credit Card Businesses of Commercial Banks (the “Measures”), which took effect that same day. The Measures are reported to be the first comprehensive regulations relating to the credit card business in China, and include a number of provisions on the protection of personal information by commercial banks, as detailed below.

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Speier Introduces Privacy Legislation Package

Posted on February 11, 2011 by Hunton & Williams LLP

On February 11, 2011, Representative Jackie Speier (D-Calif.) introduced two pieces of legislation that, in her words, “send a clear message—privacy over profit.” The Do Not Track Me Online Act of 2011 (HR 654), would direct the Federal Trade Commission to promulgate regulations that establish standards for a “Do Not Track” mechanism. The regulations also would require covered entities to disclose their information practices to consumers, and to respect consumers’ choices regarding the collection and use of their information. The bill includes a provision that would allow the FTC to exempt from its regulations certain “commonly accepted commercial practices” such as using consumer information to provide and improve products and services, to comply with law, or to carry out basic business functions like accounting, quality assurance or internal auditing.

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ILITA Issues Restrictions on Financial Institutions

Posted on February 2, 2011 by Hunton & Williams LLP

Reporting from Israel, legal consultant Dr. Omer Tene writes:

The Israeli Law, Information and Technology Authority (“ILITA”) has issued a new instruction (the “Instruction”) restricting financial institutions from using information concerning writs of execution issued against clients’ property.  Pursuant to the Instruction, if a bank or insurance company finds out that a client’s account has become subject to a writ of execution, such information may not be used to deny the client credit or to adjust the rate of his or her insurance premiums.  Information regarding writs of execution may be used only to carry out the writ.  ILITA’s Instruction is based on the purpose limitation provisions in the Israeli Privacy Protection Act, 1981, as well as a specific section in the Execution of Judgments Act, 1967.

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President Obama Signs Red Flag Program Clarification Act

Posted on December 20, 2010 by Hunton & Williams LLP

On December 18, 2010, President Obama signed into law the “Red Flag Program Clarification Act of 2010” (S.3987), which amends the Fair Credit Reporting Act with respect to the applicability of identity theft guidelines to creditors.  The law limits the scope of the Federal Trade Commission’s Identity Theft Red Flags Rule (“Red Flags Rule”), which requires “creditors” and “financial institutions” that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect and respond to patterns, practices or specific activities that indicate possible identity theft.

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Senator Kerry’s Senior Advisor Provides Key Insight into Forthcoming Privacy Bill

Posted on December 10, 2010 by Hunton & Williams LLP

On December 10, 2010, Senior Advisor to U.S. Senator John Kerry (D-Mass.), Daniel Sepulveda, briefed the Centre for Information Policy Leadership at Hunton & Williams LLP (the “Centre”) members on Senator Kerry’s forthcoming privacy legislation.  The bill, which will be introduced next Congress, aims to establish a regulatory framework for the comprehensive protection of individuals’ personal data that authorizes rulemakings by the Federal Trade Commission. Continue reading…

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Senate Passes Bill to Limit Red Flags Rule Scope

Posted on December 3, 2010 by Hunton & Williams LLP

The “Red Flag Program Clarification Act of 2010” (S. 3987) has passed the Senate.  The legislation would limit the scope of the Red Flags Rule, which requires certain “creditors” to develop and implement written identity theft prevention programs to help identify, detect and respond to patterns, practices or specific activities that indicate possible identity theft.  The new legislation would exclude from the definition of “creditor” certain entities that “[advance] funds on behalf of a person for expenses incidental to a service provided by the creditor to that person.”  As we previously reported, companion legislation has been introduced in the House of Representatives.

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