Businesses operating in New York City should be aware of a local law addressing the use of automated employment screening and decision-making tools coming into effect on January 1, 2023. This law applies broadly to employers and employment agencies operating in New York City that target New York City residents using what it refers to
CFPB Warns Failure to Safeguard Consumer Data May Be Unfair Act or Practice
The CFPB recently published a circular confirming that covered persons and service providers under the Consumer Financial Protection Act (CFPA) may violate the CFPA’s prohibition against unfair acts or practices when they fail to adequately safeguard consumer information. However, the lack of clear substantive standards creates uncertainty as to what the CFPB would deem to be adequate data security practices.
Pursuant to the Gramm-Leach-Bliley Act, the FTC and federal banking agencies have promulgated rules and interagency guidelines requiring financial institutions to establish appropriate administrative, technical, and physical safeguards to protect the security and confidentiality of customer information. Such safeguards include restricted access to customer information, encryption of information, and periodic reports on the information security program to the board of directors, among other requirements. In the August 11, 2022 circular, the CFPB stated that failure to comply with these specific requirements may also be an unfair act or practice under the CFPA in certain circumstances, but “[w]hile these requirements often overlap, they are not coextensive.” This leaves open the question of what exact security measures companies would need to implement in order to avoid an unfairness violation under the CFPA.
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NYDFS Announces Draft Amendments to Cybersecurity Regulation
On July 29, 2022, the New York Department of Financial Services (“NYDFS”) released Draft Amendments to its Cyber Security Regulations. The Amendments, if adopted, would further regulatory trends and impose important new requirements on covered entities.
The Amendments contain three significant changes relating to ransomware. First, the Amendment specifically adds “the deployment of ransomware
Webinar Recording – Crypto Breaches: Legal & Regulatory Update
The FTC recently reported that over $650 mm worth of cryptocurrency was stolen by hackers last year. Thus far, over $320 mm in cryptocurrency has been stolen by hackers this year. Not surprisingly, this surge in crypto breaches has led to litigation. In our monthly webcast series, Ballard partners Phil Yannella, Greg Szewczyk and
Webinar — Ballard Partner Phil Yannella to Join Discussion of New Proposed SEC Cyber Rules for Investment Advisors
Since the beginning of the year, the SEC has issued several sets of proposed rules governing cybersecurity. In an upcoming webinar, Ballard Privacy & Data Security partner Phil Yannella will join a panel discussion hosted by SEI Investments concerning the impact of these new rules on registered investment advisors and funds. You can register
Podcast – New Privacy Litigation Targets Sharing of Consumer Personal Data
On the latest episode of our podcast, Business Better, our Ballard lawyers discuss emerging trends in privacy litigation. Issues we discuss include companies sharing and selling consumer data, plaintiffs’ liability theories, including the right of publicity, and best business practices to consider in anticipation of privacy claims.
Leading this discussion is Aliza Karetnick, a Partner
Colorado AG’s Office Issues Data Security Guidance
On January 28, 2022 the Consumer Protection Section of the Colorado Attorney General’s Office issued guidance regarding data security best practices. Businesses subject to the Colorado Privacy Act can look to these best practices as a roadmap for the technical and organizational data security safeguards the law requires businesses to implement.
The guidance instructs covered
California Passes Suite of New Privacy Laws
California continues to be at the vanguard of privacy protection. On October 11, 2021 California’s Governor Newsom signed several bills addressing privacy and data security. These new laws go into effect January 1, 2022 and include:
- AB 335, which adds an exemption to the California Consumer Privacy Act (CCPA) consumer personal information sales opt-out
California Enforcement Updates and Privacy Tools Highlight Regulatory Scrutiny of Right to Opt Out
With a little over a year of enforcing the California Consumer Privacy Act (CCPA) under its belt, the Office of the California Attorney General (OAG) recently held a press conference to announce updates on its CCPA enforcement efforts and promote new tools relating to California consumers’ right to opt out of the sale of their personal information.
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New York City’s Biometric Identifier Information Law Takes Effect
On July 9, 2021, New York City’s biometric identifier information law became effective. The law, which was enacted in January 2021, addresses the collection and use of biometric identifier information (BII) by commercial establishments—meaning places of entertainment, retail stores, or food and drink establishments—to track customer activity. It creates a private right of action and subjects violators to statutory damages.
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