EU Data Governance Act – Edging Closer to a European Single Market for Data
On 6 April 2022, the European Parliament formally approved the Data Governance Act (“DGA”), which establishes a legal framework to promote the availability of data and increase trust in data sharing across sectors in the EU. Some of the key objectives of the new legislation include enabling the re-use of certain categories of protected public sector data and making it easier and safer for citizens and businesses to share their data with relevant stakeholders. (more…)
Utah Joins the Comprehensive Privacy Law Club
Utah has become the fourth state, following California, Virginia and Colorado, to enact a comprehensive consumer data privacy law. The Utah Consumer Privacy Act (“UCPA”), formerly known as Senate Bill 227, passed the Utah Senate and House with no opposition, and was signed by Governor Cox on March 24, 2022.
The UCPA shares many similarities with Virginia’s Consumer Data Protection Act (“VCDPA”) and the Colorado Privacy Act (“CPA”), and some similarities with the California Consumer Privacy Act (“CCPA”) and the California Privacy Rights Act (“CPRA”). That said, the UCPA is somewhat narrower and more business friendly than other state privacy law analogs. The UCPA will go into effect on December 31, 2023. (more…)
Understanding China’s Data Regulatory Regime: What Are Important Data? And Can They Be Transferred Outside Of China?
The concept of “important data” is a cornerstone of China’s data regulatory regime. The Cyber Security Law (2017) (the CSL) prohibits operators of critical information infrastructures (CIIs) from transferring their “important data” and personal information outside of China. The Data Security Law (2021) (the DSL) and some recent draft regulations indicate that the prohibition on exports of “important data” is likely to apply to all companies, whether CII operators or not.
Then, what are “important data”? (more…)
Developments in Health Privacy and Cybersecurity Policy and Regulation: OCR Issues Cybersecurity Warnings and New Health Data Legislation Is Introduced
On March 17, 2022, the U.S. Department of Health and Human Service’s Office for Civil Rights (“OCR”) issued industry guidance for Health Insurance Portability and Accountability Act (“HIPAA”) regulated entities to take preventative steps to protect against some of the more common, and often successful, cyber-attack techniques. For example, the number of breaches of unsecured electronic Personal Health Information (“ePHI”) reported to the OCR affecting 500 or more individuals due to hacking or IT incidents increased 45% from 2019 to 2020. Further, OCR noted that the number of breaches due to hacking or IT incidents accounted for 66% of all breaches affecting 500 or more individuals reported to the Department in 2020. OCR concludes most cyber-attacks could be prevented or substantially mitigated if HIPAA covered entities and business associates implemented HIPAA Security Rule requirements to address the most common types of attacks.
OCR’s reminders and recommendations for regulated entities include to: (more…)
Uniform Personal Data Protection Act Offers an Alternative Approach to Consumer Data Protection
*This article first appeared in Legaltech News on March 22, 2022, available here.
With federal consumer privacy bills gaining little traction, the Uniform Law Commission proposes the Uniform Personal Data Protection Act (UPDPA) as an alternative to the existing quilt of state consumer privacy laws. In a panel hosted by Sidley Austin partner Alan Raul, the drafters discussed the major features of the law and how they balance consumer concerns about data privacy while reducing commercial disruption. (more…)
Congress Passes Cyber Incident Reporting for Critical Infrastructure Act of 2022
The U.S. Congress has passed a significant new cybersecurity law that will require critical infrastructure entities to report material cybersecurity incidents and ransomware payments to the Cybersecurity and Infrastructure Security Agency (CISA) within 72 and 24 hours, respectively. The reporting requirements will cover multiple sectors of the economy, including chemical industry entities, commercial facilities, communications sector entities, critical manufacturing, dams, financial services entities, food and agriculture sector entities, healthcare entities, information technology, energy, and transportation. CISA must promulgate a proposed implementing regulation within 24 months from final enactment date of March 15, 2022, and a final regulation no later than 18 months thereafter. The effective date of the act’s reporting requirements will be set by the final rule. (more…)
Trying to Tackle Big Data: European Union Launches Draft Data Act
On 23 February 2022, the European Commission (Commission) proposed a draft of a regulation on harmonised rules on fair access to and use of data – also known as the Data Act. The Data Act is intended to “ensure fairness in the digital environment, stimulate a competitive data market, open opportunities for data-driven innovation and make data more accessible for all”.
If adopted in its current form, the new rules will impose far-reaching obligations on tech companies (such as manufacturers of connected products and cloud service providers) and give national authorities new enforcement powers to sanction infringements with fines of up to EUR 20 million or 4% of annual global revenue, whichever is higher. (more…)
5 Key European Data Protection Trends for 2022
It seems there will be a packed agenda for EU and UK data protection this coming year. We set out below the 5 hot topics to watch in 2022 including expected legislative reforms, the most interesting cases to follow, and areas which are expected to continue to receive regulatory attention. (more…)
Uniform Law Commission Proposes “Reasonable” Uniform Personal Data Protection Act for State-by-State Adoption as Federal Privacy Bills Languish
Introduction
As data breaches become more common, increased public attention on privacy has led to a flurry of state-level activity on the issue. With a federal privacy bill languishing in Congress, the states have taken the lead. California, Colorado, and Virginia have all passed comprehensive privacy laws in the past three years. In 2021, an additional twenty-one states considered a comprehensive privacy bill.
Considering the serious risk of fragmentation that could arise from dozens of distinct privacy statutes, the Uniform Law Commission has proposed a model bill – the Uniform Personal Data Protection Act (“UPDPA”). The Uniform Law Commission’s model bills, such as the Uniform Commercial Code, are often influential in the development of state laws. The UPDPA will be available for states’ 2022 legislative sessions, with a bill having already been introduced in the District of Columbia.
If adopted, the UPDPA offers a more business-friendly framework than many of the existing and proposed state privacy laws. (more…)
EU Council Publishes Changes to Artificial Intelligence Act Proposal
On 29 November 2021, the Slovenian Presidency (the “Presidency”) of the European Council published its compromise text (“Compromise Text”) on the European Union’s (“EU”) draft Artificial Intelligence Act (“AI Act” or “Act”) alongside a progress report on the Act. While the overall structure of the AI Act and many of its key provisions (including, those relating to potential fines for non-compliance), remain the same, there are some significant proposed changes to the Act which we have noted below including, for example, a new Article on general purpose AI systems. (more…)