On October 19, 2018, the Federal Trade Commission announced that it released a paper on the Staff Perspective on the Informational Injury Workshop (the “Paper”), which summarized the outcomes of a workshop it hosted on December 12, 2017 to discuss and better understand “informational injuries” (i.e., harm suffered by consumers as a result of privacy and security incidents, such as data breaches or unauthorized disclosures of data) in an effort to guide (1) future policy determinations related to consumer injury and (2) future application of the “substantial injury” prong in cases involving informational injury. Continue Reading FTC Releases Staff Perspective on Informational Injuries
As reported on the Insurance Recovery Blog, Hunton Andrews Kurth insurance practice head Walter Andrews recently commented to the Global Data Review regarding the infirmities underlying an Orlando, Florida federal district court’s ruling that an insurer does not have to defend its insured for damage caused by a third-party data breach. Continue Reading Hunton Insurance Head Comments on Hotel Data Breach Coverage Dispute
Vizio, Inc. (“Vizio”), a California-based company best known for its internet-connected televisions, agreed to a $17 million settlement that, if approved, will resolve multiple proposed consumer class actions consolidated in California federal court. The suits’ claims, which are limited to the period between February 1, 2014 and February 6, 2017, involve data-tracking software Vizio installed on its smart TVs. The software allegedly identified content displayed on Vizio TVs and enabled Vizio to determine the date, time, channel of programs and whether a viewer watched live or recorded content. The viewing patterns were connected to viewer’s IP addresses, though never, Vizio emphasized in its press release announcing the proposed settlement, to an individual’s name, address, or similar identifying information. According to Vizio, viewing data allows advertisers and programmers to develop content better aligned with consumers’ preferences and interests. Continue Reading Vizio Agrees to $17M Settlement to Resolve Smart TV Class Action Suit
On September 26, 2018, the SEC announced a settlement with Voya Financial Advisers, Inc. (“Voya”), a registered investment advisor and broker-dealer, for violating Regulation S-ID, also known as the “Identity Theft Red Flags Rule,” as well as Regulation S-P, the “Safeguards Rule.” Together, Regulations S-ID and S-P are designed to require covered entities to help protect customers from the risk of identity theft and to safeguard confidential customer information. The settlement represents the first SEC enforcement action brought under Regulation S-ID. Continue Reading SEC Fines Broker-Dealer $1 Million in First Enforcement Action Under Identity Theft Rule
The U.S. Department of Commerce’s National Institute of Standards and Technology recently announced that it is seeking public comment on Draft NISTIR 8228, Considerations for Managing Internet of Things (“IoT”) Cybersecurity and Privacy Risks (the “Draft Report”). The document is to be the first in a planned series of publications that will examine specific aspects of the IoT topic. Continue Reading NIST Seeks Public Comment on Managing Internet of Things Cybersecurity and Privacy Risks
On September 26, 2018, the U.S. District Court for the District of Colorado (“the Court”) refused to dismiss all putative class claims against Chipotle Mexican Grill, Inc. (“Chipotle”). This litigation arose from a 2017 data breach in which hackers stole customers’ payment card and other personal information by using malicious software to access the point-of-sale systems at Chipotle’s locations. Continue Reading Chipotle Consumer Plaintiffs’ Putative Class Case Survives in Part
On September 27, 2018, the Federal Trade Commission announced a settlement agreement with four companies – IDmission, LLC, (“IDmission”) mResource LLC (doing business as Loop Works, LLC) (“mResource”), SmartStart Employment Screening, Inc. (“SmartStart”), and VenPath, Inc. (“VenPath”) – over allegations that each company had falsely claimed to have valid certifications under the EU-U.S. Privacy Shield framework. The FTC alleged that SmartStart, VenPath and mResource continued to post statements on their websites about their participation in the Privacy Shield after allowing their certifications to lapse. IDmission had applied for a Privacy Shield certification but never completed the necessary steps to be certified. Continue Reading Four Companies Settle FTC Allegations Regarding False EU-U.S. Privacy Shield Certifications
On September 26, 2018, the U.S. Department of Commerce’s National Telecommunications and Information Administration (“NTIA”) announced that it is seeking public comments on a proposed approach to advancing consumer privacy. The approach is divided into two parts: (1) a set of desired user-centric privacy outcomes of organizational practices, including transparency, control, reasonable minimization (of data collection, storage length, use and sharing), security, access and correction, risk management and accountability; and (2) a set of high-level goals that describe the outlines of the ecosystem that should be created to provide those protections, including harmonizing the regulatory landscape, balancing legal clarity and the flexibility to innovate, ensuring comprehensive application, employing a risk and outcome-based approach, creating mechanisms for interoperability with international norms and frameworks, incentivizing privacy research, ensuring that the Federal Trade Commission has the resources and authority to enforce, and ensuring scalability. Continue Reading NTIA Seeks Public Comment on Approach to Consumer Privacy with an Eye Toward Building Better Privacy Protections
On September 26, 2018, the U.S. Senate Committee on Commerce, Science, and Transportation convened a hearing on Examining Consumer Privacy Protections with representatives of major technology and communications firms to discuss approaches to protecting consumer privacy, how the U.S. might craft a federal privacy law, and companies’ experiences in implementing the EU General Data Protection Regulation (“GDPR”) and the California Consumer Privacy Act (“CCPA”). Continue Reading Senate Commerce Committee Holds Hearing on Examining Consumer Privacy Protections
Effective September 21, 2018, Section 301 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Act”) requires consumer reporting agencies to provide free credit freezes and year-long fraud alerts to consumers throughout the country. Under the Act, consumer reporting agencies must each set up a webpage designed to enable consumers to request credit freezes, fraud alerts, extended fraud alerts and active duty fraud alerts. The webpage must also give consumers the ability to opt out of the use of information in a consumer report to send the consumer a solicitation of credit or insurance. Consumers may find links to these webpages on the Federal Trade Commission’s Identity Theft website.
The Act also enables parents and guardians to freeze their children’s credit if they are under age 16. Guardians or conservators of incapacitated persons may also request credit freezes on their behalf.
Section 302 of the Act provides additional protections for active duty military. Under this section, consumer reporting agencies must offer free electronic credit monitoring to all active duty military.
For more information, read the FTC’s blog post.