In an important decision for employers, the U.S. Supreme Court unanimously overturned a decision by the U.S. Court of Appeals for the Ninth Circuit in a case involving an employee’s assertion that a government employer had violated the Fourth Amendment by unreasonably obtaining and reviewing personal text messages sent and received on employer-issued pagers. The decision, a victory for employers, provides helpful guidance for management of electronic communication systems and workplace searches. Read this alert to learn more about the decision and how it may affect you.
FTC Settlement Bars Marketing of Spyware for Illegal Uses
The Federal Trade Commission scored a victory over spyware with a recent settlement with a company that will prohibit it from marketing its keylogging software as a “100 percent undetectable” way to “Spy on Anyone, From Anywhere.”
Massachusetts Data Security Regulations: Your Company May Not Be Located There, But If Your Customers Are, You Need to Comply
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 –…
Geez Ruiz: 9th Circuit (Probably) Ends Long-standing Data Breach Litigation Against Gap, Inc. and Others
On May 28, 2010, in an unpublished decision, the U.S. Court of Appeals for the Ninth Circuit affirmed the California district court’s dismissal of a class action lawsuit against retailer Gap, Inc. because, among other things, the plaintiff failed to show that the loss of his personal information harmed him in a legally cognizable way. The Ninth Circuit’s decision echoes those issued in every “identity exposure” lawsuit to date: an increased risk of identity theft does not a lawsuit make!
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FTC Extends (Yet Again) Enforcement Deadline for Identity Theft Red Flags Rule
The Federal Trade Commission announced today that it is once again extending the deadline for enforcing its “Red Flags” Rule, while Congress considers legislation that would affect the scope of entities covered by the Rule. The FTC is delaying enforcement of the Rule until December 31, 2010 in response to a request from members of Congress who are working to finalize legislation that would limit the scope of business covered by the Rule.
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Third-Party Bank Remains Caught Between an Order Compelling Production and Malaysian Law – Coercive Sanctions Recommended
Our April 1, 2010 blog entry discussed the March 8, 2010 Order in Gucci Amer., Inc. v. Curveal Fashion, No. 09 Civ. 8458 (S.D.N.Y.) (the “Order”), compelling the third-party U.S. parent (the “U.S. Parent”) of a foreign bank, to produce documents located at its subsidiary, despite claims that such production was illegal under Malaysian banking secrecy laws. The entry concluded by noting the no-win situation that foreign corporations continue to be placed in by the tension between U.S. courts and foreign law. Subsequent history in this matter further illustrates the seriousness of this predicament.
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FTC to Investigate Digital Copy Machine Privacy Risks
On May 11, 2010, the Federal Trade Commission responded to a letter previously submitted by Congressman Edward Markey which voiced concern over privacy risks relating to digital copiers.