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As we’ve discussed in prior posts, newly effective regulations promulgated under Massachusetts’ recent data security law, Mass. Gen. Law ch. 93H, have raised the bar for data security compliance, and they have a long reach.  The regulations are national and international in scope, as they apply to all companies –

On March 25, 2010, the Federal Trade Commission (“FTC”) announced that it had entered into a settlement with entertainment operator, Dave & Buster’s, Inc., for alleged violations of Section 5(a) of the FTC Act, and for “engag[ing] in a number of practices that, taken together, failed to provide reasonable and appropriate security for personal information on its networks.”
The settlement marks the 27th case brought by the FTC against a company for insufficient data security practices.

This past week, the Ponemon Institute announced their publication of the results of their fifth annual study on the costs of data breaches for U.S.-based companies. The study was sponsored by the PGP Corporation. A similar report for U.K.-based companies was also released. This year’s report, entitled 2009 Annual Study: Cost of a Data Breach, displays the results of the Ponemon Institute’s research of data breach incidents occurring in 2009.
Overall, as with previous years, the study found that U.S. organizations continue to experience increased costs associated with the data breaches they experience.

The Family Educational Rights and Privacy Act (20 U.S.C. 1232g; 34 CFR Part 99) (“FERPA”) imposes various requirements on educational institutions regarding the privacy of personally identifiable information contained in education records of students.  On December 9, 2008, the U.S. Department of Education (“DOE”) published final rules amending the regulations that implement FERPA.   

 

Originally proposed on March 28, 2008, the DOE published a notice which proposed various changes to FERPA and its implementing regulations “to implement various statutory changes made to FERPA to implement two recent US Supreme Court decisions, to respond to changes in information technology, and to address other issues identified through the Department’s experience in administering FERPA.”  (73 FR 74806).  According to the DOE, approximately 121 parties submitted comments in response to the March, 2008 NPRM.  The Final Rules become effective January 8, 2009.

Section 214 of Fair and Accurate Credit Transactions Act (“FACTA”) was enacted to amend the Fair Credit Reporting Act (the “Act”) to give consumers the right to restrict certain entities from using certain information received from their affiliates to make solicitations to that consumer unless the consumer has been provided (1) “clear and conspicuous” notice that the consumer’s information will be shared for such purposes, and (2) an opportunity to opt out of having such information shared for such purposes.
On November 7, 2007, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the National Credit Union Administration issued a joint final rule (along with the Federal Trade Commission (FTC) and the Securities and Exchange Commission(SEC), which separately adopted and proposed, respectively, similar regulations) under the amended Act (the “Affiliate Marketing Rule” or “Final Rule,” codified at 12 C.F.R. Parts 41, 222, 334, 571 and 717) governing the use of specific consumer information obtained by covered entities from their affiliates for certain marketing purposes.
The Affiliate Marketing Rule became effective on January 1, 2008, and compliance by covered entities is required by October 1, 2008.