On December 4, 2018, the New York Attorney General (“NY AG”) announced that Oath Inc., which was known as AOL Inc. (“AOL”) until June 2017 and is a subsidiary of Verizon Communications Inc., agreed to pay New York a $4.95 million civil penalty following allegations that it had violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting and disclosing children’s personal information in conducting online auctions for advertising placement. This is the largest-ever COPPA penalty.
On October 30, 2018, ATA Consulting LLC (doing business as Best Medical Transcription) agreed to a $200,000 settlement with the New Jersey Attorney General resulting from a server misconfiguration that allowed private medical records to be posted publicly online. The fine was suspended to $31,000 based on the company’s financial condition. Read the settlement. Continue Reading Medical Transcription Vendor Agrees to $200,000 Settlement with New Jersey Attorney General
On September 26, 2018, Uber Technologies Inc. (“Uber”) agreed to a settlement (the “Settlement”) with all 50 U.S. state attorneys general (the “Attorneys General”) in connection with a 2016 data breach affecting the personal information (including driver’s license numbers) of approximately 607,000 Uber drivers nationwide, as well as approximately 57 million consumers’ email addresses and phone numbers. The Attorneys General alleged that after Uber learned of the breach, which occurred in November 2016, the company paid intruders a $100,000 ransom to delete the data. The Attorneys General alleged that Uber failed to promptly notify affected individuals of the incident, as required under various state laws, instead notifying affected customers and drivers of the breach one year later in November 2017. Continue Reading Uber Settles with 50 State Attorneys General for $148 Million In Connection with 2016 Data Breach
On September 23, 2018, California Governor Jerry Brown signed into law SB-1121 (the “Bill”), which makes limited substantive and technical amendments to the California Consumer Privacy Act of 2018 (“CCPA”). The Bill takes effect immediately, and delays the California Attorney General’s enforcement of the CCPA until six months after publication of the Attorney General’s implementing regulations, or July 1, 2020, whichever comes first. Continue Reading CCPA Amendment Bill Signed Into Law
On September 7, 2018, the New Jersey Attorney General announced a settlement with data management software developer Lightyear Dealer Technologies, LLC, doing business as DealerBuilt, resolving an investigation by the state Division of Consumer Affairs into a data breach that exposed the personal information of car dealership customers in New Jersey and across the country. The breach occurred in 2016, when a researcher exposed a gap in the company’s security and gained access to unencrypted files containing names, addresses, social security numbers, driver’s license numbers, bank account information and other data belonging to thousands of individuals, including at least 2,471 New Jersey residents. Continue Reading Software Company Settles with New Jersey AG Over Data Breach
As reported in BNA Privacy Law Watch, a California legislative proposal would allocate additional resources to the California Attorney General’s office to facilitate the development of regulations required under the recently enacted California Consumer Privacy Act of 2018 (“CCPA”). CCPA was enacted in June 2018 and takes effect January 1, 2020. CCPA requires the California Attorney General to issue certain regulations prior to the effective date, including, among others, (1) to update the categories of data that constitute “personal information” under CCPA, and (2) certain additional regulations governing compliance (such as how a business may verify a consumer’s request made pursuant to CCPA). The proposal, which was presented in two budget bills, would allocate $700,000 and five staff positions to the California Attorney General’s office to aid in the development of the required regulations. The legislature is expected to pass the relevant funding measure by August 31, 2018. California Attorney General Xavier Becerra has stated that he expects his office will issue its final rules under CCPA in June 2019.
On August 3, 2018, California-based Unixiz Inc. (“Unixiz”) agreed to shut down its “i-Dressup” website pursuant to a consent order with the New Jersey Attorney General, which the company entered into to settle charges that it violated the Children’s Online Privacy Protection Act (“COPPA”) and the New Jersey Consumer Fraud Act. The consent order also requires Unixiz to pay a civil penalty of $98,618. Continue Reading Unixiz Agrees to Settle Charges Under COPPA and the New Jersey Consumer Fraud Act
On June 28, 2018, the Governor of California signed AB 375, the California Consumer Privacy Act of 2018 (the “Act”). The Act introduces key privacy requirements for businesses, and was passed quickly by California lawmakers in an effort to remove a ballot initiative of the same name from the November 6, 2018, statewide ballot. We previously reported on the relevant ballot initiative. The Act will take effect January 1, 2020. Continue Reading California Consumer Privacy Act Signed, Introduces Key Privacy Requirements for Businesses
As reported in BNA Privacy Law Watch, on March 21, 2018, South Dakota enacted the state’s first data breach notification law. The law will take effect on July 1, 2018, and includes several key provisions: Continue Reading South Dakota Enacts Breach Notification Law
On January 23, 2018, the New York Attorney General announced that Aetna Inc. (“Aetna”) agreed to pay $1.15 million and enhance its privacy practices following an investigation alleging it risked revealing the HIV status of 2,460 New York residents by mailing them information in transparent window envelopes. In July 2017, Aetna sent HIV patients information on how to fill their prescriptions using envelopes with large clear plastic windows, through which patient names, addresses, claims numbers and medication instructions were visible. Through this, the HIV status of some patients was visible to third parties. The letters were sent to notify members of a class action lawsuit that, pursuant to that suit’s resolution, they could purchase HIV medications at physical pharmacy locations, rather than via mail order delivery. Continue Reading Aetna Agrees to $1.15 Million Settlement with New York Attorney General