On March 30, 2021, the Supreme Court heard arguments in TransUnion LLC. v. Ramirez, a case in which Respondent Ramirez brought a class action lawsuit against Petitioner TransUnion, alleging that it incorrectly placed a flag on his credit report; the flag suggested that Ramirez was on a list of potential terrorists and criminals maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (the “OFAC list”) because his name was similar to two individuals whose name were on that list. After Ramirez learned he had been flagged, he requested a copy of his credit report from TransUnion. TransUnion sent him a copy of his credit report, which did not include any reference to the OFAC list, and a second mailing indicating that his name was a potential match for a name on the OFAC list. Ramirez sued on behalf of himself and a class of over 8,000 individuals who received similar mailings, alleging that TransUnion violated the Fair Credit Reporting Act (“FCRA”) by (i) incorrectly flagging him as potentially appearing on the OFAC list and (ii) sending him the information about the potential match separately from his requested credit report, which he argued was confusing because the mailing regarding the OFAC list did not include FCRA-required information about how to dispute and correct the incorrect information.
On January 5, 2021, President Donald Trump signed Executive Order (EO) 13971, banning certain transactions and activities with persons who “develop or control” eight Chinese “connected software applications,”1 specifically Alipay, CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate, WeChat Pay, and WPS Office. The prohibitions will come into effect 45 days after the issuance of the order, that is, February 19.
On December 15, 2020, the U.S. Federal Deposit Insurance Corporation (FDIC) approved and the federal banking agencies jointly announced on December 18 a notice of proposed rulemaking, Computer-Security Incident Notification Requirements for Banking Organizations and Their Bank Service Providers (NPR).1 The NPR is a joint proposal by the Office of the Comptroller (OCC), the Board of Governors of the Federal Reserve System (Board), and the FDIC.
On November 2, 2020, Singapore’s legislature finally approved amendments to the Personal Data Protection Act (PDPA). The changes become law once a government gazette is passed (possibly before the end of 2020). If you operate in Singapore, handle Singapore data, or maintain a server in Singapore, it is crucial that you have protocols in place to guide employees on what to do when a data breach occurs and consider doing a data breach tabletop exercise. (We have organized a number of these drills for clients in preparation for breach notification requirements in Australia and now Singapore.) (more…)
The results are in, and California voters have approved the California Privacy Rights Act (CPRA) which was listed on the ballot as Proposition 24. The law, most of which does not go into effect until January 1, 2023, will substantially overhaul and amend the California Consumer Privacy Act (CCPA) which went into effect just this year, on January 1, 2020, with final regulations issued just a few months ago, on August 14, 2020. And indeed, CCPA obligations continue to evolve, with proposed amendments to the regulations proposed by the Attorney General’s Office mid-October 2020.
*This article was adapted from “Global Overview,” appearing in The Privacy, Data Protection and Cybersecurity Law Review (7th Ed. 2020)(Editor Alan Charles Raul), published by Law Business Research Ltd., and first published by the International Association of Privacy Professionals Privacy Perspectives series on September 28, 2020.
Privacy, like everything else in 2020, was dominated by the COVID-19 pandemic. Employers and governments have been required to consider privacy in adjusting workplace practices to account for who has a fever and other symptoms, who has traveled where, who has come into contact with whom, and what community members have tested positive or been exposed.
As a result of all this need for tracking and tracing, governments and citizens alike have recognized the inevitable trade-offs between exclusive focus on privacy versus exclusive focus on public health and safety.
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.
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
The U.S. Departments of State, the Treasury and Homeland Security and the Federal Bureau of Investigation issued a joint advisory (the Advisory) on April 15, 2020, discussing the threat to the international community posed by cyberattacks linked to the Democratic People’s Republic of Korea (North Korea), in particular highlighting concerns for the financial services sector. North Korea has been subjected to comprehensive international sanctions implemented to pressure its government to denuclearize. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has implemented additional unilateral sanctions in response to other North Korean activities, including cyberattacks, human rights violations and money laundering. In addition to broad prohibitions on trade with North Korea, U.S. sanctions bar domestic financial institutions from conducting or facilitating any significant transaction in connection with trade with North Korea or on behalf of any person whose property has been blocked under executive orders imposing sanctions on North Korea. Foreign financial institutions risk secondary sanctions for engaging in the same. (more…)