On June 26, 2017, Airway Oxygen, a provider of oxygen therapy and home medical equipment, reported that it was the subject of a ransomware attack affecting 500,000 patients’ protected health information. The attack is the second largest health data breach recorded by the Office for Civil Rights (“OCR”) this year, and the largest ransomware incident recorded by OCR since it began tracking incidents in 2009. Continue Reading
Information Security 101 with Lisa Sotto: Legal Risks
In the first segment of this three-part series, Lisa Sotto, head of the Global Privacy and Cybersecurity practice at Hunton & Williams, discusses information security law issues with The Electronic Discovery Institute. “[Information security] is a significant risk issue” and should be “at the top of the radar screen” for C-suites and boards of directors, says Sotto. In this segment, Sotto addresses U.S. and global data breach notification laws.
Record Data Breach Settlement in Anthem Class Action
On June 23, 2017, Anthem Inc., the nation’s second largest health insurer, reached a record $115 million settlement in a class action lawsuit arising out of a 2015 data breach that exposed the personal information of more than 78 million people. Among other things, the settlement creates a pool of funds to provide credit monitoring and reimbursement for out-of-pocket costs for customers, as well as up to $38 million in attorneys’ fees. Continue Reading
Tempur Sealy Data Breach: Putative Class Action Filed
On June 12, 2017, a putative class action was filed in the U.S. District Court for the Northern District of Georgia against Tempur Sealy International, Inc. and Aptos, Inc. Tempur Sealy is a mattress, bedding and pillow retailer based in Lexington, Kentucky. Aptos is headquartered in Atlanta, Georgia, and formerly hosted and maintained Tempur Sealy’s website and online payment system. The plaintiff alleges that the breach was discovered in November of 2016 and involved the exposure of payment card data and other PII of an undisclosed number of Tempur Sealy customers. Continue Reading
Implementation of the EU GDPR: 30-Minute Guidance Review
As companies in the EU and the U.S. prepare for the application of the EU General Data Protection Regulation (“GDPR”) in May 2018, Hunton & Williams’ Global Privacy and Cybersecurity partner Aaron Simpson discusses with Forcepoint the key, significant changes from the EU Directive that companies must comply with before next year. Accountability, expanded data subject rights, breach notification, sanctions and data transfer mechanisms are a few requirements that Simpson explores in detail. He reminds companies that, in the coming year, it will be very important to “monitor…and stay aware of the guidance being produced by regulators,” but also that the guidance is not a substitute for the specific preparations that each business will need to perform in order to comply with the GDPR.
Webinar on Amendments to Japan’s Act on the Protection of Personal Information
Effective May 30, 2017, Japan’s amendments to its Act on the Protection of Personal Information are extensive. Hunton & Williams will host a webinar on these amendments on June 29, 2017, at 12:00 p.m. EST. Join privacy and cybersecurity partner Bing Maisog as he discusses the main changes to the Act, including amendments on cross-border data transfers, domestic transfers to third parties, sensitive personal information, anonymization and the fundamental regulatory structure.
UK ICO Revises Subject Access Guidance Following Court Rulings
On June 20, 2017, the UK Information Commissioner’s Office (“ICO”) published an updated version of its Code of Practice on Subject Access Requests (the “Code”). The updates are primarily in response to three Court of Appeal decisions from earlier this year regarding data controllers’ obligations to respond to subject access requests (“SARs”). The revisions more closely align the ICO’s position with the court’s judgments. Continue Reading
FTC Releases Guidance on COPPA Compliance
On June 21, 2017, the Federal Trade Commission updated its guidance, Six-Step Compliance Plan for Your Business, for complying with the Children’s Online Privacy Protection Act (“COPPA”). The FTC enforces the COPPA Rule, which sets requirements regarding children’s privacy and safety online. The updated guidance adds new information on situations where COPPA applies and steps to take for compliance. Continue Reading
Germany Issues Ethics Report on Automated and Connected Cars
On June 20, 2017, the German Federal Ministry of Transport and Digital Infrastructure issued a report on the ethics of Automated and Connected Cars (the “Report”). The Report was developed by a multidisciplinary Ethics Commission established in September 2016 for the purpose of developing essential ethical guidelines for the use of automated and connected cars. Continue Reading
Putative Data Breach Class Action Dismissed for the Third Time
On June 13, 2017, Judge Andrea R. Wood of the Northern District of Illinois dismissed with prejudice a putative consumer class action filed against Barnes & Noble. The case was first filed after Barnes & Noble’s September 2012 announcement that “skimmers” had tampered with PIN pad terminals in 63 of its stores and exposed payment card information. The court had previously dismissed the plaintiffs’ original complaint without prejudice for failure to establish Article III standing. After the Seventh Circuit’s decision in Remijas v. Neiman Marcus Group, the plaintiffs filed an almost identical amended complaint that alleged the same causes of action and virtually identical facts. Although the court found that the first amended complaint sufficiently alleged Article III standing, the plaintiffs nevertheless failed to plead a viable claim. The court therefore dismissed the first amended complaint under Rule 12(b)(6). Continue Reading
