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
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 28, 2018, California Governor Jerry Brown signed into law two identical bills regulating Internet-connected devices sold in California. S.B. 327 and A.B. 1906 (the “Bills”), aimed at the “Internet of Things,” require that manufacturers of connected devices—devices which are “capable of connecting to the Internet, directly or indirectly,” and are assigned an Internet Protocol or Bluetooth address, such as Nest’s thermostat—outfit the products with “reasonable” security features by January 1, 2020; or, in the bills’ words: “equip [a] device with a reasonable security feature or features that are appropriate to the nature and function of the device, appropriate to the information it may collect, contain, or transmit, and designed to protect the device and any information contained therein from unauthorized access, destruction, use, modification, or disclosure[.]” Continue Reading California Enacts New Requirements for Internet of Things Manufacturers
On September 4, 2018, the Department of Commerce’s National Institute of Standards and Technology (“NIST”) announced a collaborative project to develop a voluntary privacy framework to help organizations manage privacy risk. The announcement states that the effort is motivated by innovative new technologies, such as the Internet of Things and artificial intelligence, as well as the increasing complexity of network environments and detail of user data, which make protecting individuals’ privacy more difficult. “We’ve had great success with broad adoption of the NIST Cybersecurity Framework, and we see this as providing complementary guidance for managing privacy risk,” said Under Secretary of Commerce for Standards and Technology and NIST Director Walter G. Copan. Continue Reading NIST Launches Privacy Framework Effort
On July 12, 2018, two U.S. Senators sent a letter to the Federal Trade Commission asking the agency to investigate the privacy policies and practices of smart TV manufacturers. In their letter, Senators Edward Markey (D-MA) and Richard Blumenthal (D-CT) note that smart TVs can “compile detailed profiles about users’ preferences and characteristics” which can then allow companies to personalize ads to be sent to “customers’ computers, phones or any other device that shares the smart TV’s internet connection.” Continue Reading Senators Ask FTC to Investigate Smart TV Manufacturers
On June 27, 2018, the Ministry of Public Security of the People’s Republic of China published the Draft Regulations on the Classified Protection of Cybersecurity (网络安全等级保护条例（征求意见稿）) (“Draft Regulation”) and is seeking comments from the public by July 27, 2018. Continue Reading China Publishes the Draft Regulations on the Classified Protection of Cybersecurity
On February 6, 2018, the Federal Trade Commission (“FTC”) released its agenda for PrivacyCon 2018, which will take place on February 28. Following recent FTC trends, PrivacyCon 2018 will focus on privacy and data security considerations associated with emerging technologies, including the Internet of Things, artificial intelligence and virtual reality. The event will feature four panel presentations by over 20 researchers, including (1) collection, exfiltration and leakage of private information; (2) consumer preferences, expectations and behaviors; (3) economics, markets and experiments and (4) tools and ratings for privacy management. The FTC’s press release emphasizes the event’s focus on the economics of privacy, including “how to quantify the harms that result when companies fail to secure consumer information, and how to balance the costs and benefits of privacy-protective technologies and practices.” Continue Reading FTC Releases PrivacyCon 2018 Agenda
On January 18, 2018, Hunton & Williams LLP’s retail industry lawyers, composed of more than 100 lawyers across practices, released their annual Retail Year in Review publication. The Retail Year in Review includes several articles authored by our Global Privacy and Cybersecurity lawyers, and touches on many topics of interest including blockchain, ransomware, cyber insurance and the Internet of Things.
On January 8, 2018, the FTC announced an agreement with electronic toy manufacturer, VTech Electronics Limited and its U.S. subsidiary, settling charges that VTech violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting personal information from hundreds of thousands of children without providing direct notice or obtaining their parent’s consent, and failing to take reasonable steps to secure the data it collected. Under the agreement, VTech will (1) pay a $650,000 civil penalty; (2) implement a comprehensive data security program, subject to independent audits for 20 years; and (3) comply with COPPA. This is the FTC’s first COPPA case involving connected toys and the Internet of Things.
On October 13, 2017, the Federal Trade Commission published the twelfth and final blog post in its “Stick with Security” series (the “Series”). The Series focused on the 10 principles outlined in the FTC’s Start with Security Guide for Businesses and sought to provide insights and lessons learned on data security from recent FTC cases, closed investigations and questions and comments received from businesses. The final post, entitled Stick with Security: FTC resources for your business, outlines the resources available to businesses to put the principles detailed in the Series into practice. These can be found on the FTC’s Data Security page.