House Passes Two Cybersecurity Bills

On April 26, 2012, the U.S. House of Representatives approved the Cyber Intelligence Sharing and Protection Act (“CISPA” or H.R. 3523), which is aimed at facilitating the exchange of cyber threat intelligence information between the government and certain private entities. In addition, the House approved the Federal Information Security Amendments Act of 2012 (H.R. 4257), which modifies the Federal Information Security Management Act of 2002 to provide for automated and continuous monitoring of the security of government information systems.

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Maryland Legislature Approves Bill Prohibiting Employers from Requesting Social Media Passwords

On April 9, 2012, Maryland became the first state to pass legislation that would prevent employers from asking or forcing employees and applicants to hand over their social media login credentials. The bill, which passed the state Senate unanimously (Senate Bill 433) and the House of Delegates by a wide margin (House Bill 964), now awaits Maryland Governor Martin O’Malley’s signature.

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Twitter Slaps Spammers with Lawsuit

On April 5, 2012, social media giant Twitter, Inc. (“Twitter”) filed a civil lawsuit against spammers and makers of spamming software claiming violations of Twitter’s user agreement and various California state and common laws. Borrowing from the popular term for unsolicited email messages, Twitter’s complaint describes “spam” on Twitter as “a variety of abusive behaviors” including “posting a Tweet with a harmful link … and abusing the @reply and @mention functions to post unwanted messages to a user.” The suit alleges that certain defendants violated Twitter’s Terms of Service, which prohibit “spam and abuse,” by distributing software tools “designed to facilitate abuse of the Twitter platform and marketed to dupe customers into violating Twitter’s user agreement.” Other defendants allegedly operated large numbers of automated Twitter accounts through which they attempted to “trick Twitter users into clicking on links to illegitimate websites.”

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Article 29 Working Party Releases Opinion on Facial Recognition Technology

On March 22, 2012, the Article 29 Working Party (the “Working Party”), adopted an Opinion analyzing the privacy and data protection law framework applicable to the use of facial recognition technology in online and mobile services, such as social networks and smartphones. The Working Party defines facial recognition as the “automatic processing of digital images which contain the faces of individuals for the purpose of identification, authentication/verification or categorization of those individuals.”

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Centre Files Comments with NTIA to Develop Consumer Privacy Codes of Conduct

Drawing on its eleven years of experience facilitating multistakeholder processes, on April 2, 2012, the Centre for Information Policy Leadership at Hunton & Williams LLP filed comments in response to the Department of Commerce’s National Telecommunications and Information Administration’s request for public comments on the multistakeholder process to develop consumer data privacy codes of conduct. The NTIA’s request relates to the topics and processes that will inform the creation of binding codes of conduct as discussed in the Obama Administration’s February release of a framework for a Consumer Privacy Bill of Rights.

In its remarks, the Centre indicated support for the multistakeholder approach, but proposed a process that would allow industry stakeholders the opportunity to engage in frank discussions among themselves, without media coverage or concern that their comments might be recorded. While the Centre’s proposal emphasized that industry should draft codes of best practices, it also highlighted the need for feedback from experts, advocates and regulators, specifically through a public workshop and written comment period. The Centre also urged the multistakeholder working group to prioritize the development of industry best practices for accountability.

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Article 29 Working Party Opines on Proposed EU Data Protection Law Reform Package

On March 23, 2012, the Article 29 Working Party (the “Working Party”) adopted an Opinion on the European Commission’s data protection law reform proposals, including the draft Regulation that is of particular importance for businesses. The Working Party’s Opinion serves as the national data protection authorities’ contribution to the legislative process before the European Parliament and the European Council.

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FTC Privacy Report Emphasizes Privacy by Design, Individual Control and Transparency

On March 26, 2012, the Federal Trade Commission issued a new privacy report entitled “Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers.” The report charts a path forward for companies to act in the interest of protecting consumer privacy.

In his introductory remarks, FTC Chairman Jon Leibowitz indicated his support for Do Not Track stating, “Simply put, your computer is your property; no one has the right to put anything on it that you don’t want.” In later comments he predicted that if effective Do Not Track mechanisms are not available by the end of this year, the new Congress likely would introduce a legislative solution.

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NTIA Extends Deadline for Comments on Developing Consumer Data Privacy Codes of Conduct

On March 21, 2012, the U.S. Department of Commerce’s National Telecommunications and Information Administration announced a one-week extension to the deadline for responses to their March 2 request for public comments on the multistakeholder process to develop consumer data privacy codes of conduct. Comments are now due on Monday, April 2, 2012. The request for comments relates to both the topics and processes that will inform the creation of binding codes of conduct as discussed in the Obama Administration’s February release of a framework for a Consumer Privacy Bill of Rights.

The Centre for Information Policy Leadership at Hunton & Williams will be submitting comments.

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Sotto Discusses White House Administration’s Consumer Privacy Bill of Rights

On February 24, 2012, Eric Chabrow of BankInfoSecurity interviewed Lisa J. Sotto, partner and head of the Global Privacy and Data Security practice at Hunton & Williams LLP. Discussing the need for a Consumer Privacy Bill of Rights, Sotto briefly outlined the strengths and weaknesses of the proposed bill, and its potential impact on businesses.

Read the interview or listen to the podcast, which can be streamed or downloaded as an MP3 on the BankInfoSecurity website.

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CBI for the Cloud

A growing number of companies are implementing cloud computing solutions to lower IT costs and increase efficiency. Although cloud technology offers an array of advantages, organizations that rely on the cloud must compensate for the corresponding increase in risk associated with outsourcing business operations to a third party. A recent article  authored by Hunton & Williams Insurance Litigation & Counseling partner Lon Berk discusses the ways in which business interruptions caused by cloud service provider failures may be covered by contingent business interruption insurance, or CBI.

Read CBI for the Cloud.

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