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
Federal Financial Regulators Tighten Timelines for Reporting Ransomware Attacks
As anticipated, the Department of the Treasury’s Office of the Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System (“Federal Reserve”), and the Federal Deposit Insurance Corporation (“FDIC”) recently approved and released the Final Rule Requiring Computer-Security Incident Notification (“Final Rule”). This Final Rule is designed to promote early awareness and stop computer security incidents before they become systemic. It places new reporting requirements on both U.S. banking organizations, as well as bank service providers.
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FTC Guidance Affirms Breach Notification Obligations for Health Apps and Connected Devices
On September 15, 2021, the Federal Trade Commission (“FTC”) issued a policy statement affirming the applicability of its Health Breach Notification Rule (the “Rule”), 16 CFR Part 318, to health apps and connected devices that are not subject to the Health Insurance Portability and Accountability Act (“HIPAA”) but are capable of drawing information from multiple sources.
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Another Federal Court Orders Production of Data Breach Forensic Report
Following in the footsteps of the Eastern District of Virginia’s Capital One decision last year and the District of D.C.’s Clark Hill decision earlier this year, the Eastern District of Pennsylvania has just ordered the production of a data breach forensic report and related communications. In re Rutter’s Data Sec. Breach Litig., No. 1:20-CV-382,
Ballard Spahr Partner, Phil Yannella, Authors Book on Data Breach and Privacy Litigation
Phil Yannella, Ballard Spahr litigation partner and Practice Leader of Ballard’s Privacy & Data Security Group, recently authored a treatise on data breach and privacy litigation. The book, Cyber Litigation: Data Brach, Data Privacy & Digital Rights, is published by Thomson Reuters and is available now for purchase.
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President Biden’s Cybersecurity Executive Order Has Implications for the Private Sector
On May 12, 2021, President Joe Biden issued an Executive Order to implement new policies aimed at strengthening the nation’s cybersecurity. The Executive Order was issued in response to the recent SolarWinds, Microsoft Exchange, and Colonial Pipeline cybersecurity incidents, which were, according to the White House, “a sobering reminder that U.S. public and private sector entities increasingly face sophisticated malicious cyber activity from both nation-state actors and cyber criminals.”
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Second Circuit Ruling Clarifies When Data Breach Plaintiffs Have Adequately Plead Article III Standing
In a thoughtful opinion that diverges from how other circuit courts have addressed the issue, the Second Circuit recently issued a ruling clarifying the circumstances when data breach plaintiffs can rely on fear of identity theft to establish Article III standing.
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11th Circuit Finds No Standing Based on Fear of Future Identity Theft
In an opinion that deepens an existing circuit court split, the Eleventh Circuit recently held that the future risk of identity theft is not sufficient to establish Article III standing.
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Federal Court Dismisses CCPA Claim Against Marriot International, Inc. For Lack of Standing
On January 12, 2021, the federal District Court for the Central District of California dismissed a data breach law suit—including a claim filed under the California Consumer Privacy Act (“CCPA”)—against Marriott International, Inc. The holding, which dismissed the claims for lack of standing, will likely play a role in a number of CCPA cases that
Federal Court System—And Possibly Sealed Filings—Breached in Connection With SolarWinds Hack
The Administrative Office of the U.S. Courts (the “AO”) recently disclosed that it has initiated an investigation into an apparent compromise in security of the Judiciary’s Case Management/Electronic Case Files System (“CM/ECF”) as a result of vulnerabilities associated with SolarWinds Orion products. The AO noted that it is currently working with the Department of Homeland