In recent years, the Federal Trade Commission has increasingly exercised its enforcement authority to target deceptive and unfair information security practices. During this time, enforcement actions have targeted companies for failing to honor their promises to implement “reasonable” or “industry standard” security practices, defend against well-known security threats, put in place basic security measures, or take many other basic data security steps. And despite challengers arguing that the FTC provided insufficient notice before pursuing these actions or that the actions otherwise exceeded the FTC’s Section 5 enforcement authority, the Commission generally has a track record of successfully defending its prerogatives. (more…)
*This article first appeared on Law360 on April 17, 2018
On April 17, the National Institute for Standards and Technology (NIST) released an updated version of its standard-setting Cybersecurity Framework. Commerce Secretary Wilbur Ross announced the new release with a statement saying the “Cybersecurity Framework should be every company’s first line of defense” and “adopting version 1.1 is a must do for all CEO’s.” Version 1.1 is dated April 16, 2018, and is available at: https://nvlpubs.nist.gov/nistpubs/CSWP/NIST.CSWP.04162018.pdf. (more…)
On February 21, 2018, the U.S. Securities and Exchange Commission issued interpretive guidance (the Guidance) to assist public companies in drafting their cybersecuritydisclosures in SEC filings. See 83 FR 8166 (Feb. 26, 2018). In his public statement accompanying the issuance of this guidance, SEC Chairman Jay Clayton said he believed that “providing the Commission’s views on these matters will promote clearer and more robust disclosure by companies about cybersecurity risks and incidents, resulting in more complete information being available to investors.”1 In this new guidance, the SEC is likely intending to signal how it may focus future enforcement concerning the cybersecurity disclosure obligations of public companies, and their underlying disclosure controls, procedures and certifications. (more…)
On Jan. 3, the United States Court of Appeals for the Sixth Circuit issued a decision that effectively required a company to turn over materials relating to a privileged forensic data breach investigation because, the court concluded, the company had implicitly waived privilege when it disclosed certain of the forensic firm’s conclusions in response to a discovery request. The Sixth Circuit’s decision emphasizes the need for caution by litigants wishing to raise a defense that relies on privileged investigations and reports, including third-party forensic reports, or otherwise disclosing the conclusions of such investigations and reports. (more…)
Following months of intense debate, an attempted filibuster, and close votes in both the House and Senate, Congress last week finally extended Section 702 of the Foreign Intelligence Surveillance Act (FISA).
On January 8, the FTC announced a settlement with VTech (a maker of electronic children’s toys) for violations of COPPA, adding to the regulatory activity mounting in the last few years around the Internet of Toys. The company agreed to pay $650,000 to settle allegations that its Kid Connect app and its Learning Lodge platform collected personal information from almost 3,000,000 children without providing direct notice and obtaining their parent or guardian’s consent. (more…)
This past year was marked by ever more significant data breaches, growing cybersecurity regulatory requirements at the state and federal levels and continued challenges in harmonizing international privacy and cybersecurity regulations. We expect each of these trends to continue in 2018.
As we begin this New Year, here is list of the top 10 privacy and cybersecurity issues for 2018: (more…)
*This post originally appeared in Law 360 on October 24, 2017.
We’ve seen it happen time and again. When a company experiences a major data breach or hacking incident, media attention turns to speculation or allegations about the company’s past history of underinvesting in cyber defenses, its supposed culture of cyber complacency, or its history of unaddressed (but, in retrospect, allegedly clear) vulnerabilities. New information may come to light indicating the victimized company suffered previous breaches months, or years, earlier. Rumors of cyber-inadequacy gain currency among current and former employees and, ultimately, regulators and plaintiffs. Sometimes (but not always), these rumors, allegations, supposition and speculation even turn out to be true. (more…)