HHS reached a settlement on March 12, 2012 with Blue Cross Blue Shield of Tennessee (“BCBST”) for $1.5 million stemming from a 2009 data breach. This settlement represents the first under the HITECH Act.
HHS Settlement for Lack of HIPAA Safeguards
One April 17, 2012, the United States Department of Health and Human Services Office for Civil Rights (“OCR”) reached a settlement with Phoenix Cardiac Surgery (“PSC”) for alleged violations of the HIPAA Privacy and Security Rules.
Massachusetts AGO Stresses the Importance of Encryption
The Massachusetts Attorney General’s Office ("AGO") has entered into an Assurance of Discontinuance (the "Settlement") with a Massachusetts company after allegations that the company failed to adequately protect personal information of Massachusetts residents. The AGO alleged that an employee of Maloney Properties, Inc. ("MPI") stored unencrypted personal information on a company laptop, and failed to follow the company’s written information security program ("WISP") that set forth the company’s standards for protecting personal information. MPI agreed to pay a fine of $15,000 in connection with the Settlement.
Friend Request Rejected: Maryland Bans Employers from Asking Employees for their Social Media Passwords
Maryland became the first state to pass legislation that prohibits employers from asking employees and job applicants for their social media passwords.
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Katharine Parker Discusses Employer Access to Employee Social Media Accounts with the Christian Science Monitor
On April 11, 2012, Katharine Parker, a partner in Proskauer’s Labor & Employment Law Department, discussed privacy concerns that arise when an employer demands access to its employees’ social media accounts.
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Smart Grid Technology Implicates New Privacy Concerns
The smart grid is an advanced metering infrastructure made up of “smart meters” capable of recording detailed and near-real time data on consumer electricity usage. That data would then be sent to utilities through a wireless communications network. In recent years, utilities have increased the pace of smart meter deployment—smart meters are expected to be on 65 million homes by 2015. A smart grid could deliver electricity more efficiently and would enable consumers to track and adjust their energy usage in real time through a home display. But these new capabilities also implicate new privacy concerns.
FTC Releases Recommendations for Business and Policymakers
The FTC released its final report titled “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Business and Policymakers” which sets forth principles that companies are recommended to follow with respect to their privacy practices.
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