Tag Archives: Consumer Protection

2012 IAPP Global Privacy Summit

Join us at the International Association of Privacy Professionals (“IAPP”) Global Privacy Summit in Washington, D.C., March 7-9, 2012. Hunton & Williams privacy professionals will be featured speakers in the following sessions:

  • Mending Fences after a Breach
    Thursday, March 8, 12:15 p.m.
    Speakers include: Lisa J. Sotto, partner and head of the Global Privacy and Data Security practice, Hunton & Williams LLP; Susan Grant, Director of Consumer Protection, Consumer Federation of America; and Joanne B. McNabb, Chief, California Office of Privacy Protection. Continue reading…
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Digital Advertising Alliance Supports Browser-Based Choice Mechanism

The Digital Advertising Alliance (“DAA”) recently announced that its members will work “to add browser-based header signals to the set of tools by which consumers can express their preferences” not to be tracked online and will work with browser providers to develop “consistent language across browsers…that describes to consumers the effect of exercising such choice.”

This announcement came on the heels of the Obama administration’s release of a framework for a Consumer Privacy Bill of Rights. The DAA’s agreement represents the industry’s attempt to appease consumer privacy concerns in the face of the growth of online advertising. The DAA represents over 400 advertising and technology companies.

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White House Announces Its Highly Anticipated Consumer Privacy Bill of Rights

The White House today released its long-awaited report outlining a framework for U.S. data protection and privacy policy. As expected, “Consumer Data Privacy in a Networked World: A Framework for Protecting Privacy and Promoting Global Innovation in the Global Digital Economy” articulates a Consumer Privacy Bill of Rights based on the individual’s right to exercise control over what personal data companies collect from the individual and how companies use the data. The Consumer Privacy Bill of Rights, which reflects principles of fair information practices and applies to personal data, sets forth individual rights for consumers and corresponding obligations of companies in connection with personal data. It also provides for the consumer’s right to:

  • transparent privacy and data security practices;
  • expect that companies will collect, use and disclose data in a manner consistent with the context in which it was collected;
  • have their data handled in a secure manner;
  • access and correct personal data;
  • set reasonable limits on the personal data that companies collect and retain; and
  • have personal data handled by companies with appropriate measures in place to assure they adhere to the Consumer Privacy Bill of Rights.

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FTC Warns Marketers of Mobile Apps About Potential FCRA Violations

On February 6, 2012, the Federal Trade Commission warned six marketers of background screening mobile applications that they may be violating the Fair Credit Reporting Act (“FCRA”). In a sample letter posted on the FTC website, the FTC indicates that at least one of the recipient marketer’s mobile apps involves background screening reports that include criminal history checks. Pursuant to the FCRA, this could make the marketers of the mobile apps “consumer reporting agencies” if they are “providing information to employers regarding current or prospective employees’ criminal histories [that] involves the individuals’ character, general reputation, or personal characteristics.”

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Connecticut AG Announces Agreement with MetLife over 2009 Breach Incident

On January 24, 2011, Connecticut Attorney General George Jepsen and Consumer Protection Commissioner William Rubenstein announced that they had reached an Assurance of Voluntary Compliance (“AVC”) with Metropolitan Life Insurance Co. (“MetLife”) in connection with an incident involving the disclosure of customer personal information on the Internet. In November 2009, a MetLife employee posted the personally identifiable information of current and former MetLife customers, including their Social Security numbers, on the Internet. Following the discovery of the posting, MetLife acted to mitigate possible harm by providing credit monitoring and identity theft insurance to the affected customers.

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Minnesota AG Sues Debt Collection Agency for Health Privacy Violations

On January 19, 2012, Minnesota Attorney General Lori Swanson announced a lawsuit against Accretive Health, Inc., (“Accretive”) for violations of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and its implementing regulations, the Minnesota Health Records Act, Minnesota’s debt collection statutes and Minnesota’s consumer protection laws. The suit, which was filed in Federal District Court in Minnesota, alleges that Accretive failed to adequately safeguard patients’ protected health information (“PHI”). This failure contributed to a July 2011 information security breach when an Accretive employee left an unencrypted laptop containing information of approximately 23,500 patients in a rental car. The laptop was stolen and has not yet been recovered.

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Third Circuit Holds Data Breach Plaintiffs Lack Standing

On December 12, 2011, the United States Court of Appeals for the Third Circuit affirmed a decision that employees of Ceridian Corporation’s (“Ceridian’s”) customers did not have standing to sue Ceridian after the payroll processing firm suffered a data breach.

In December 2009, a hacker may have gained access to personal and financial information of Ceridian’s customers, including names, addresses, Social Security numbers, dates of birth and bank account information. Although it is not known if the hacker read, copied or understood the data, Ceridian sent notification letters to affected individuals informing them of the breach and offering to provide one year of complimentary credit monitoring and identity theft protection.

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Massachusetts Court Dismisses ZIP Code Suit for Failure to Allege a Cognizable Injury

On January 6, 2012, the United States District Court for the District of Massachusetts granted Michaels Stores, Inc.’s (“Michaels”) a motion to dismiss against a customer-plaintiff who alleged that Michaels’ in-store information collection practices violated Massachusetts law. Although the court ruled in Michaels’ favor, it found that customer ZIP codes do constitute personal information under Massachusetts state law when collected in the context of a credit card transaction. The plaintiff’s class action complaint alleged that “Michaels illegally requested customers’ ZIP codes when processing their credit card transactions in violation of” Massachusetts General Laws Chapter 93, Section 105(a) (“Section 105(a)”). Specifically, Section 105(a) states that “[n]o person, firm, partnership, corporation or other business entity that accepts a credit card for a business transaction shall write, cause to be written or require that a credit card holder write personal identification information, not required by the credit card issuer, on the credit card transaction form.”

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FTC Settles with Alleged Stealth Behavioral Advertising Targeter

On January 5, 2012, the Federal Trade Commission announced a proposed settlement with Upromise, Inc., a membership reward service that gives cash rebates for college savings accounts to members who purchase products and services from its partner merchants. The FTC alleged that the “Personalized Offers” feature on the Upromise TurboSaver Toolbar (1) collected far more information about users’ browsing behavior than was disclosed at the time of installation, and (2) contrary to representations in the company’s privacy notice, transmitted that information, which included data such as Social Security numbers and financial account numbers, in clear text.

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FTC Seeks Public Comments on Facial Recognition Technology

On December 23, 2011, the Federal Trade Commission announced that it is seeking public comments on the privacy and security implications raised by the use of facial recognition technology. The FTC recently held a public workshop entitled “Face Facts: A Forum on Facial Recognition Technology,” that discussed the current and future commercial applications of facial recognition technologies and the associated privacy and security concerns.

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