2021 proved to be a momentous year for privacy and data security law. The scourge of ransomware continued last year, leading to record-setting ransomware payments, a muscular response from the federal government, a hardening insurance market, and significant corporate anxiety. Two more U.S. states passed comprehensive data privacy laws in 2021. The FTC was very active, issuing new guidance for artificial intelligence (AI), publishing revisions to the GLBA Safeguards Rule, and bringing new enforcement actions. The U.S. Supreme Court issued a number of opinions that had the effect of narrowing the scope of key privacy statutes while biometric litigation in Illinois exploded. The European Commission promulgated new rules for cross-border transfers, and U.S. state regulatory enforcement activities ramped up.
Continue Reading Predictions for Privacy & Data Security in 2022
Exploring the Rise in State Wiretap Claims
The latest wrinkle in the ever-changing world of data privacy litigation is the recent surge in state wiretap claims. What began as a trickle over the summer of 2020 has grown into a clear wave as plaintiffs have filed dozens of lawsuits against prominent tech, eCommerce, entertainment, and retail companies under state wiretap laws. These lawsuits seek statutory damages for the alleged interception of consumers’ electronic communications through the defendant’s use of various website analytic tools. Insofar as the use of website analytics tools is ubiquitous on the internet, privacy litigators are carefully watching the progress of these state wiretap claims. If successful, state wiretap claims could become the next TCPA, threatening virtually every company with a sizable web presence in the U.S.
Continue Reading Exploring the Rise in State Wiretap Claims
Facebook BIPA Class Settlement Receives Preliminary Approval
On August 19, 2020, the United States District Court for the Northern District of California granted preliminary approval of the class action settlement in In re Facebook Biometric Information Privacy Litigation, 3:15-cv-03747-JD. If the settlement receives final approval, Facebook would pay $650 million to Illinois class members as compensation for violations of the Illinois
Increased Use of Zoom Raises Privacy and Security Concerns
In light of COVID-19, many organizations are taking advantage of free video conferencing capabilities offered by Zoom. Almost overnight, Zoom has become one of the most popular video conferencing services among businesses and schools. Daily Zoom users have skyrocketed from 10 million users in December 2019 to 200 million users in March 2020.
Continue Reading Increased Use of Zoom Raises Privacy and Security Concerns
Equifax Reaches Historic $575 Million Settlement Agreement Arising from 2017 Data Breach
Equifax has agreed to pay $575 million to settle consumer as well as state and federal regulatory claims for its 2017 data breach. This is the largest data breach settlement to date.
Continue Reading Equifax Reaches Historic $575 Million Settlement Agreement Arising from 2017 Data Breach
8th Circuit Decision in SuperValu Class Action is a Reminder that Injury and Damages Aren’t the Same Thing.
Last Friday we blogged on the Saks data breach class action, and in the process mentioned a trend among federal courts to reject fear of future identity theft claims in retail breach cases. As we explained, because retail breaches rarely involve theft of social security numbers, date of birth, healthcare information or other data that can be used to commit identity theft, courts have typically found that plaintiffs in such cases lack standing to pursue their claims in federal court.
Continue Reading 8th Circuit Decision in SuperValu Class Action is a Reminder that Injury and Damages Aren’t the Same Thing.
Court Ruling in Saks Data Breach Case Illustrates That Threshold for Article III Standing Is Low
For years, plaintiffs in data breach class actions have argued that the threshold for Article III standing is low – and increasingly courts are accepting that argument. The Saks data breach class action, pending in the Southern District of New York, is the latest example of a federal court finding that Article III standing exists even where the plaintiff’s asserted injuries are very minimal.
Continue Reading Court Ruling in Saks Data Breach Case Illustrates That Threshold for Article III Standing Is Low
Supreme Court Orders Standing Analysis in Google Settlement
On March 20, 2019, the Supreme Court refused to address the adequacy of a $8.5 million Google privacy class action settlement and instead remanded to a lower court to determine whether the class action plaintiffs had standing to assert a claim under the Stored Communications Act (“SCA”). The Court’s holding serves as a reminder that
Pennsylvania Supreme Court Recognizes Common Law Duty to Safeguard Employees’ Personal Data
On November 21, 2018, the Pennsylvania Supreme Court drastically changed the data breach litigation landscape by holding that an employer has a common law duty to use reasonable care to safeguard employees’ personal information stored on an Internet-accessible computer. The Court further held that Pennsylvania’s economic loss doctrine permits recovery for “purely pecuniary damages” on a negligence claim premised on a breach of such a duty.
Continue Reading Pennsylvania Supreme Court Recognizes Common Law Duty to Safeguard Employees’ Personal Data
Analyzing the California Consumer Privacy Act’s Private Right of Action
For good reason, there has been much discussion about the new privacy rights created by the California Consumer Privacy Act of 2018 (CCPA), which becomes effective January 1, 2020. Perhaps one of the most significant provisions of the CCPA, though, will be one that has been somewhat overlooked: Section 1798.150, which provides for statutory damages of between $100 and $750 per consumer per incident for certain data breaches. Indeed, had California enacted Section 1798.150 alone, it would have garnered scores of articles on how its statutory damages remedy will likely lead to an explosion in “bet-the-company” private class action litigation over data breaches. The fact that it was enacted as just one provision in a first-in-the-nation privacy law has resulted in commentators spending less time analyzing its impact on businesses.
We will try to remedy this by taking a look at this provision and analyzing how it will apply to businesses covered by the CCPA. We begin by discussing existing California laws that are referenced in the CCPA’s private right of action. We then track the private right of action through its various forms, starting with the ballot measure and ending with its current version as reflected in Senate Bill 1121. Finally, we discuss how the private right of action likely will be used by private litigants and what steps businesses should take to avoid costly litigation.
Continue Reading Analyzing the California Consumer Privacy Act’s Private Right of Action