By

Alan Charles Raul

20 August 2020

Third Time’s the Charm: CCPA Regulations Finally Approved With Limited Substantive Changes from June 2020 Version

On August 14, 2020, California’s Office of Administrative Law approved and filed with the California Secretary of State final regulations implementing the California Consumer Privacy Act.  The regulations, drafted by California’s Office of the Attorney General (OAG), went through three rounds of changes during the rulemaking process and were finally enacted more than two years after the CCPA was signed into law.  The CCPA is a landmark state privacy law that grants consumers new privacy rights, and requires businesses to enhance disclosures about their data practices and facilitate consumer privacy rights.  (more…)

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19 August 2020

Historic Charges: First Enforcement Action Filed by New York Department of Financial Services Under Cybersecurity Regulation

On July 21, 2020, the New York State Department of Financial Services (NYDFS or the Department) issued a statement of charges and notice of hearing (the Statement) against First American Title Insurance Company (First American) for violations of the Department’s Cybersecurity Requirements for Financial Services Companies, 23 N.Y.C.R.R. Part 500 (Cybersecurity Regulation or Regulation). The First American Statement of charges alleges six violations of the Cybersecurity Regulation and marks the Department’s first action pursuant to the Regulation, which is enforced by the recently created NYDFS Cybersecurity Division.1

NYDFS’s Statement seeks relief against First American, including civil monetary penalties and an order requiring First American to remediate any defined violations. Although the Statement does not include a calculation of the total penalty, the NYDFS explains that the civil monetary fines against First American are to be assessed pursuant to the Financial Services Law, which provides for a maximum civil monetary penalty of $1,000 per violation of the Regulation.2 Because First American’s violations included the exposure of millions of documents containing nonpublic information (NPI), the total penalty potentially could be substantial. The First American hearing is scheduled to occur on October 26, 2020, at the NYDFS.

(more…)

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06 August 2020

Key Takeaways from Sidley’s Privacy and Cybersecurity Monitor-Side Chat Featuring Adam Klein, Chairman of the PCLOB

Posting revised August 13, 2020

On July 2, 2020, Sidley partner Alan Raul, founder and co-head of Sidley’s Privacy and Cybersecurity practice, hosted Adam Klein, Chairman of the Privacy and Civil Liberties Oversight Board (“PCLOB” or “the Board”), for a Monitor-Side Chat.

The discussion focused largely on the Commission’s work since Mr. Klein became Chairman in October, 2018. Key topics of the chat included:

  • Mission, Operation and Access of PCLOB
  • Balancing Counter-Terrorism and Privacy
  • Comparison of U.S. and Foreign Checks and Balances
  • FISA Reform
  • Emerging Technologies

(more…)

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18 July 2020

The EU’s Highest Court Announces Significant Decision Regarding Cross-Border Data Flows: Invalidates EU-US Privacy Shield Program and Upholds Standard Contractual Clauses

In a decision with significant implications for international trade and cross-border data flows, the EU’s highest court – the Court of Justice of the European Union (“CJEU”) ruled on 16 July 2020 that a key legal mechanism (called the EU-US Privacy Shield program) used to enable transfers of personal data from the European Union (“EU”) was invalid, while also potentially requiring additional protections to be implemented when another key transfer mechanism (called Standard Contractual Clauses) is used.  The case – Data Protection Commissioner v. Facebook Ireland, Max Schrems (“Schrems II”) – considered the validity of the EU-US Privacy Shield (“Privacy Shield”) program (a privacy certification made available for US organizations through an agreement between the European Commission and the US government) and Standard Contractual Clauses (“SCC”) (a form of international data transfer agreement made available for use by the European Commission).

(more…)

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26 June 2020

The Return of the Mac: CCPA 2.0 Qualifies for California’s November 2020 Ballot and Could Usher In Sweeping Changes to CCPA

The California Privacy Rights Act (CPRA), a proposed initiative to codify far-reaching amendments to the California Consumer Privacy Act (CCPA) and sometimes referred to as “CCPA 2.0”, is back in play and heading to the November 2020 ballot.  A series of dramatic procedural twists and turns culminated with initiative backers successfully obtaining a writ of mandate directing the Secretary of State to direct counties to verify signatures for the ballot proposal by the June 25th Constitutional deadline.  This verification involved each county conducting a random sample of the more than 800,000 signatures that proponents had submitted to place the initiative on the ballot.

Before the California court’s ruling, observers were skeptical that signatures could be verified before the deadline.  Initiative proponents were almost two weeks behind the recommended schedule when they delivered signatures to be verified by California’s 58 counties.  This meant counties had until June 26th to verify signatures — a day after the June 25th Constitutional deadline.  Experience with other initiatives this year had shown that several large counties were waiting until the deadline to complete verifications, so proponents petitioned the court to push the deadline up by a day in order to meet the Constitutional deadline.  The court agreed to do so, finding good cause existed to force counties to complete verifications a day early.  And, as it happened, the extra time was not needed, as counties finished the count two days ahead of their initial deadline.

(more…)

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15 June 2020

Who’s Balancing Privacy Against Public Health and Everything Else?

*Article first appeared in The Hill on June 13, 2020.

Concerns over the use of location tracking and contact tracing of infected individuals to help mitigate the spread of COVID-19 have once again placed “privacy” at the forefront of public attention. And even though Congress declared privacy to be a fundamental right in 1974, it established no cabinet office or institutional framework to focus on the role of data protection and digital technology in our society. Consequently, during these days of COVID-19, there is no senior government official responsible for taking account of and balancing the trade-offs between privacy and public health.

Click here to read in full.

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04 June 2020

CCPA Enforcement Date Rapidly Approaching: California Attorney General Proposes Regulations for Final Review With July 1, 2020 Less Than One Month Away

On June 1, 2020, California’s Office of the Attorney General (“AG”) moved one step closer to finalizing the California Consumer Privacy Act (“CCPA”) regulations when the AG submitted proposed final regulations for review and approval by California’s Office of Administrative Law (“OAL”).  This submission signals the end of the AG’s CCPA regulation drafting process that began in early 2019.  If the OAL approves the proposed final regulations, they will be finalized and enforceable by the AG, subject to any legal challenges.

(more…)

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10 April 2020

CCPA Marches On: California Attorney General Proposes Further Revisions to CCPA Regulations, Industry Pleads for Enforcement Delay Amid COVID-19 Crisis

While the world seems to have ground to a halt in so many ways, time still marches on, and along with it, the California Consumer Privacy Act (“CCPA”) enforcement date (July 1, 2020) inches ever closer.   On March 11, 2020, the California Attorney General (“AG”) released the third turn of proposed California Consumer Privacy Act (“CCPA”) regulations.  The AG’s revisions make only moderate changes to the last round of regulations issued in February 2020.  Businesses will not need to dramatically change compliance plans as the proposed revised regulations seek to refine requirements in prior drafts rather than introduce any wholesale changes to the regulatory framework.  (more…)

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24 March 2020

COVID-19: Key EU And U.S. Cybersecurity Issues and Risk-Remediation Steps

The COVID-19 crisis has created significant cybersecurity risks for organizations across the world, particularly arising from remote working, scams and phishing attacks, and weakened information governance controls. These risks warrant attention by legal counsel and information security officers in light of potentially significant adverse legal, financial and reputational consequences that could arise – all while the organization is dealing with effects of a global pandemic.

In addition to identifying the cybersecurity risks, we also consider key measures that organizations can consider adopting to reduce such risks, including measures recommended by the UK’s National Cybersecurity Centre (NCSC), EU’s Agency for Cybersecurity (ENISA) and the US Federal Bureau of Investigation.  The speed at which the COVID-19 crisis has evolved has meant that many organizations have not been able to deploy effective risk-reducing measures in a timely manner.

(more…)

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05 March 2020

Coronavirus Risks – U.S. and European Employment and Privacy Law Issues

This post seeks to help parties navigate issues arising from COVID-19 risks from an employment and privacy law perspective in both the United States and Europe.

Novel coronavirus (COVID-19) presents significant issues for employers to navigate and significant consequences for employees across industries as COVID-19 reduces consumer spending, disrupts supply chains and presents challenges for managing workforces globally. Employers should be aware of their responsibilities and proactively put in place action plans to address this growing problem. Designing these plans, and addressing requested or mandated leaves and other restrictions on employee work, presents myriad employment law issues that may vary by jurisdiction. Employers are also likely to confront privacy questions as they seek information on employees’ and others’ health and travel across jurisdictions. In developing a plan, employers will want to consider these issues in a holistic and coordinated manner.

(more…)

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