August 2013

In a world full of electronic information (not to mention hackers and identity thieves), data breaches—the loss, theft, or unauthorized access to data—are a reality for companies that collect and store personal information. Breaches can occur in myriad ways: a hacker gains access to a database or an unencrypted laptop

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In February of 2013, President Obama signed an executive order with the purpose of creating a cybersecurity framework (or set of voluntary standards and procedures) to encourage private companies that operate critical infrastructure to take steps to reduce their cyber risk (see our blog here). Critical Infrastructure Systems such as the electric grid, drinking water, and trains are considered vulnerable to cyber attack, and the results of such attack could be debilitating. The Departments of Commerce, Homeland Security, and Treasury were tasked with preparing recommendations to incentivize private companies to comply with heightened cybersecurity standards. On August 6, 2013 the White House posted its preliminary list of incentives encouraging the adoption of cybersecurity best practices.

We have heard the well-publicized stories of stolen laptops and resulting violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and we generally recognize the inherent security risks and potential for breach of unsecured electronic protected health information posed by computer hard drives. We remember to “wipe” the personal data off of our phones or computers before they are disposed, donated, or recycled.

A recent HIPAA settlement offers a costly reminder that other types of office equipment we use regularly have similar hard drives capable of storing confidential personal information.

We’re all familiar with the ads that pop up on the side of our browsers, personalized to highlight things we might be interested in based on our web browsing activity.  Marketers and advertisers regularly track consumers’ online activities, interests and preferences and use the information they collect to create targeted ads, meant to appeal to individual consumers based on their behavioral profiles.  Some consumers have no objections to this type of targeted advertising, but others do not want their online activities monitored.  In response to privacy concerns raised by pervasive online tracking, the U.S. Federal Trade Commission endorsed the implementation of a Do Not Track (“DNT”) mechanism and the World Wide Web Consortium (“W3C”) has been working to develop a DNT technology standard that would allow users to control the tracking of their online activities. 

In a recent decision (deliberation CNIL May 30, 2013 n°2013-139), the French Data Protection Agency (CNIL) sanctioned a company for implementing a CCTV system without informing employees and because the CCTV enabled the constant monitoring of one employee making the recording disproportionate to the goal pursued.  The CNIL also sanctioned the company because it failed to implement an adequate level of security of the data housed on its systems.