On October 27, the Federal Trade Commission (“FTC”) unanimously voted to amend the Safeguards Rule to require non-banking financial institutions, such as mortgage brokers, motor vehicle dealers, and payday lenders, to report data breaches and security events to the Agency. This amendment will become effective 180 days after its publication in the Federal Register.
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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
On January 6, 2021, a bipartisan group of New York state lawmakers released a copy of Assembly Bill 27 (AB 27), the New York Biometric Privacy Act. If New York passes AB 27, it will join Illinois, Texas, and Washington as states that have adopted laws that strictly regulate the notice, collection, and handling
On November 17, 2020, H.R. 1668, the “Internet of Things Cybersecurity Improvement Act of 2020”, was unanimously passed by the Senate. The bill is now on its way to President Trump for signature or veto.
The bill would require the National Institute of Standards and Technology (“NIST”) and the Office of Management and Budget
Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, recently announced the following three major improvements that have been made to FTC orders in data security cases:
Delaware (July 31, 2019) and New Hampshire (August 2, 2019) have become the latest states to add to the insurance cybersecurity landscape by enacting information security laws. These laws come on the heels of Connecticut’s law enacted a few days earlier. Notably, while Connecticut followed the New York Department of Financial Services’ 2017 Cybersecurity
On July 26, 2019, Connecticut Governor Ned Lamont signed into the law the state’s new Insurance Data Security Law, which imposes new information security, risk management, and reporting requirements for carriers, producers, and other businesses licensed by the Connecticut Insurance Department (“CID”). In doing so, Connecticut joins New York, South Carolina, Ohio, Michigan, and Mississippi
The FTC has proposed amendments to its 2003 Safeguards Rule and the 2000 Privacy Rule, applicable to financial institutions under the Gramm Leach Bliley Act (GLBA). The proposed changes are informed by the FTC’s enforcement experience and are intended to keep pace with technological developments.
Continue Reading FTC Seeks Comment on Proposed Amendments to Safeguards and Privacy Rules
A new bill introduced by House Financial Services subcommittee Chairman Rep. Blaine Luetkemeyer would significantly change data security and breach notification standards for the financial services and insurance industries. Most notably, the proposed legislation would create a national standard for data security and breach notification and preempt all current state law on the matter.
Continue Reading Proposed House Bill Would Set National Data Security Standards for Financial Services Industry
One of the most bedeviling aspects of data privacy and security law concerns the concept of “reasonable” data security, which has become the default statutory and common law standard. The FTC began articulating a reasonableness standard in the early aughts, when the Commission first began scrutinizing companies’ data security practices. Companies for years quietly grumbled about the vagueness of this standard, which isn’t defined in any regulations or federal statutes. Critics obtained a recent victory when the Eleventh Circuit, in LabMD v. FTC, struck down an FTC judgment on grounds that the relief sought by the FTC against LabMD– implementation of reasonable data security practices — was too vague to be enforceable.
Continue Reading What Does “Reasonable” Data Security Mean, Exactly?