Proskauer on Privacy

Category Archives: Privacy Law

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Amazon’s Recent Acquisitions Highlight the Value of Consumer Data (and the Evolving Privacy Issues)

Roughly two weeks apart, on July 21, 2022 and August 5, 2022, respectively, Amazon made headlines for agreeing to acquire One Medical, “a human-centered and technology-powered primary care organization,” for approximately $3.9 billion and iRobot, a global consumer robot company, known for its creation of the Roomba vacuum, for approximately $1.7 billion. These proposed acquisitions … Continue Reading

EU-U.S. and UK-U.S. Data Transfer Deals Advance with White House Executive Order

A new legal mechanism to allow for transfers of personal data between the EU and the U.S. is now advancing after an October 7th, 2022 Executive Order was issued by U.S. President Biden (the “Executive Order”). The new mechanism is referred to as the EU-U.S. Data Privacy Framework (the “Framework”) and is intended to replace … Continue Reading

Held to Ransom: How Cyberattacks Can Become a Legal and Regulatory Odyssey for a Private Investment Fund

Where business-critical information or platforms are at stake, many commercial parties will seriously consider immediately paying the ransom hoping to regain control of operations, secure client data and avoid continued business disruption and negative publicity. However, businesses may wish to pause. Cyberattacks, by their very nature, know no borders and nor therefore should a private … Continue Reading

Message Sent! California Attorney General Announces $1.2 Million CCPA Settlement with Retailer and Its Focus on the Sale of Customer Information

On August 24, 2022, California Attorney General (AG) Rob Bonta announced a settlement with beauty products retailer, Sephora USA, Inc. (“Sephora”), resolving claims that Sephora violated the California Consumer Privacy Act (CCPA) for, among other things, failing to disclose to consumers that it was selling their personal information (including precise location data) and failing to … Continue Reading

Businesses That Use Consumer Data or Data Products (Everyone?) Take Heed: FTC Moves Ahead with Rulemaking Process on “Commercial Surveillance” Practices

On August 11, 2022, the Federal Trade Commission (FTC) issued an Advance Notice of Proposed Rulemaking (ANPR) and announced it was exploring a rulemaking process to “crack down on harmful commercial surveillance” and lax data security.  The agency defines commercial surveillance as “the collection, aggregation, analysis, retention, transfer, or monetization of consumer data and the direct derivatives of that … Continue Reading

DOJ’s Civil Cyber-Fraud Initiative Secures More Than $9 Million in Two False Claims Act Settlements for Alleged Cybersecurity Violations

Last fall, the United States Department of Justice (“DOJ”) launched its Civil Cyber-Fraud Initiative (“CCFI”) as part of its effort to “combat new and emerging cyber threats to the security of sensitive information and critical systems.” Led by the Civil Fraud Section of DOJ’s Commercial Litigation Branch, the CCFI leverages the False Claims Act (“FCA”) … Continue Reading

California Privacy Protection Agency Released Proposed CPRA Regulations

The California Privacy Protection Agency (the “Agency”) released draft regulations to the California Privacy Rights Act (“CPRA”) on May 31, 2022 (the “Proposed Regulations”). The Proposed Regulations are drafted as comments to the California Attorney General’s regulations for the California Consumer Privacy Act, California’s landmark privacy law, which was amended by CPRA.… Continue Reading

Department of Health and Human Services Issues Request for Information on Cybersecurity Standards

The Department of Health and Human Services (“HHS”) has issued a formal request for information from the public about how regulated entities are implementing industry recognized security practices. The request for information represents a chance for the private sector to contribute to HHS regulation. Interested parties have until June 6, 2022 to submit comments. HHS … Continue Reading

U.S. and EU Agree in Principle on New Trans-Atlantic Data Privacy Framework

In a joint press conference on March 25, 2022, U.S. President Joseph Biden and European Commission President Ursula von der Leyen announced an agreement “in principle” on a framework, called the Trans-Atlantic Data Privacy Framework (“Privacy Shield 2.0”), to replace the U.S.-EU Privacy Shield. The EU General Data Protection Regulation (“GDPR”) places restrictions on personal … Continue Reading

Growing Risks to Corporate Groups and the Global PE Industry from Robust European Privacy and Cybersecurity Enforcement

Since the EU General Data Protection Regulation (“GDPR”) came into effect in May 2018 there have been numerous high-profile enforcement actions (~US$880m is the largest GDPR fine to-date) and private litigation (including class-action type claims). Notable fines have included the ~US$25m fine levied in October 2020 by the UK’s GDPR regulator against Marriott International for … Continue Reading

ONC Releases Interoperability Frameworks

The 21st Century Cures Act directed the National Coordinator to “develop or support a trusted exchange framework, including a common agreement among health information networks nationally.” Fulfilling that mandate, the Office of the National Coordinator (“ONC”) for Health Information Technology released the “Trusted Exchange Framework and the Common Agreement” for health record interoperability. The two … Continue Reading

Noteworthy Trends in Privacy and Data Security

Reports of sophisticated cyberattacks and ransomware threats dominated 2021 headlines, along with evolving state data privacy laws in the absence of comprehensive federal data protection regulation. Cross-border data transfers between the EU and US still lack a clear, streamlined mechanism while national authorities continue to negotiate an EU-US Privacy Shield replacement. The past year also … Continue Reading

FTC Seeks to Move Beyond Notice and Consent to Restrict Data Collection and Use

The FTC indicated that it will use its rulemaking authority under the FTC Act’s Section 18 to create a new rule that will likely seek to rein in broad data collection and use. In October 2021, FTC Commissioner Rebecca Kelly Slaughter made two speeches in which she expressed a desire to move beyond the FTC’s … Continue Reading

UK Supreme Court Landmark Decision Limits Data Privacy Class Actions in the UK

The UK Supreme Court handed down its much-anticipated decision in the Lloyd v Google LLC [2021] UKSC 50 case on 10 November 2021 restricting claimants’ ability to bring data privacy class actions in the UK under the (now repealed) Data Protection Act 1998 (DPA 1998). This decision will be persuasive (though not binding) with respect … Continue Reading

Litigation Update on Illinois’ Biometric Information Privacy Act

Earlier this year, we reported on the potential breeding ground for litigation under Illinois’ Biometric Information Privacy Act (“BIPA”).  A recent decision from an Illinois state appellate panel on the different limitations periods that apply to BIPA provides guidance for companies faced with a BIPA lawsuit and the arguments they can make on a motion to dismiss. … Continue Reading

INDEPTH: Data Protection & Privacy Laws 2021

A heightened risk for cyberattacks and data breaches calls for companies to remain diligent as they navigate a patchwork of federal, state, local and sector-specific privacy and data protection laws, regulations and guidance. For Financier Worldwide, Margaret A. Dale and Ryan P. Blaney deliver commentary on the evolving landscape and offer considerations for companies looking … Continue Reading

Navigating the New Standard Contractual Clauses for International Data Transfers under the GDPR

The final version of the new standard contractual clauses (“SCCs”) were published by the European Commission on June 4, 2021. Many organizations that transfer or receive personal data originating in the European Economic Area (“EEA”) outside the EEA will be required to implement these SCCs with their customers, suppliers and affiliates by December 2022 to … Continue Reading

Preparing for the Final Version of the New EU Standard Contractual Clauses for International Data Transfers

It has been reported that European Commission will publish the final versions of new forms of Standard Contractual Clauses (“SCCs”) shortly (even potentially within the next few days). The Commission published draft versions of these SCCs and the implementing Commission Decisions in December 2020. These new SCCs are, arguably, the most significant development in European … Continue Reading

Litigation Breeding Ground: Illinois’ Biometric Information Privacy Act

Illinois’ Biometric Information Privacy Act (“BIPA”) is alive and well as a potential breeding ground for litigation for tech companies. In the last month, two settlements have been announced in class actions where the plaintiffs alleged violations of BIPA in the U.S. District Court for the Northern District of Illinois. These settlements show that companies … Continue Reading

Notable Trends in Privacy and Data Security

COVID-19, the California Consumer Privacy Act (CCPA) coming into force, and the invalidation of the EU-US Privacy Shield already made 2020 an especially active year for privacy and data security risks and obligations. Rounding out the year, December then brought discovery of the unprecedented Solarwinds cyberattack affecting government agencies, critical infrastructure entities and others. Thus, looking ahead, … Continue Reading

The Future of the FTC: Part II

A previous blog post discussed FTC Chairwoman Slaughter’s first priority as the newly designated chairwoman – the COVID-19 pandemic. The FTC’s second priority, racial equity, can be broken down into two sub issues. First, the FTC plans to investigate biased and discriminatory algorithms that target vulnerable communities. As the FTC acknowledges, the analysis of data … Continue Reading

The Future of the FTC: Part I

On January 21, 2021, President Biden designated Federal Trade Commission (the “FTC”) Commissioner Rebecca Kelly Slaughter as acting chair of the FTC. Soon thereafter in one of her first speeches in her new role, Chairwoman Slaughter announced two substantive areas of priority for the FTC – the COVID-19 pandemic and racial equity.… Continue Reading
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