FTC Announces it May Pursue Rulemaking to Combat Discrimination in AI
On December 10, the Federal Trade Commission (FTC) announced it is considering a rulemaking on commercial Artificial Intelligence (AI). The purpose of the rulemaking, according to an advanced notice of proposed rulemaking (ANPRM) titled “Trade Regulation in Commercial Surveillance,” would be “to curb lax security practices, limit privacy abuses, and ensure that algorithmic decision-making does not result in unlawful discrimination.”
While not formally part of the rulemaking process mandated by the Administrative Procedure Act, advanced notices allow agencies to solicit public comment before drafting more specific proposals. The FTC has not yet issued privacy or artificial intelligence rules, though it has indicated that such rulemaking is on the horizon. The December 10 ANPRM is another signal that the FTC is gearing up to develop substantive privacy guidelines. (more…)
SEC Announces Long-Awaited Updates to Broker-Dealer Recordkeeping Requirements
In a much anticipated (and, to many, long overdue) release published in mid-November, the U.S. Securities and Exchange Commission (SEC) proposed to update its decades-old recordkeeping requirements for broker-dealers to, among other things, allow for electronic records to be retained in a manner other than “exclusively in a non-rewriteable, non-erasable format” (aka write once, read many, or WORM). The proposal would allow electronic records to be retained, as an alternative to WORM, using an audit-trail methodology.
Meru Data Podcast Features Sidley Associate Lauren Kitces
Sidley associate Lauren Kitces was featured on Simplify For Success, a podcast series presented by Meru Data and hosted by Priya Keshav. The discussion covered upcoming U.S. privacy laws and key considerations for organizations as they prepare for these laws. (more…)
A Software Primer For Attorneys After Cyber Executive Order
When President Joe Biden issued his major cybersecurity executive order on May 12, a White House press briefing said the order would invoke:
“the power of federal procurement to say, “If you’re doing business with us, we need you to practice really good — really good cybersecurity. And, most importantly, we really need you to focus on secure software development.” (more…)
European General Court Judgment in Google Shopping: Key Takeaways
On November 10, 2021, the European General Court (Court) issued its judgment in Case T-612/17 Google and Alphabet v Commission (Google Shopping).
The Court dismissed almost in its entirety the action brought by Google and Alphabet against the decision by the European Commission (Commission) of June 27, 2017, which found that Google had abused its dominant market position by favoring its own comparison shopping service (CSS) on its general results pages while demoting the results from competing CSSs. The Court also upheld the fine of €2.42 billion imposed on Google by the Commission. The judgment can be appealed to the Court of Justice of the European Union (CJEU). (more…)
U.S. Federal Bank Regulators Require Notifications For Material Cybersecurity Incidents
On November 18, 2021, a group of federal bank regulators announced a final rule requiring banks to notify their primary federal regulator of any “significant computer-security incidents.” Regulators must be notified no later than 36 hours after the bank has determined that the incident triggers the rule’s notification requirement. Further, bank service providers are now required to promptly notify all affected banks whenever a cybersecurity disruption lasts for four or more hours. (more…)
Governance Challenges 2021–2022: Digital Transformation Oversight
Privacy and cybersecurity concerns are expanding, and with them the proliferation of laws and regulations. Boards play a key role in ensuring that companies are positioned to comply with various jurisdictional requirements, that they understand and mitigate related risks, and that they are well-prepared to play a key role in response to security breaches and incidents. (more…)
Institutional Investor’s Introduction to Blockchain and Digital Asset Investing
Article I: Digital Asset Overview and Methods to Gain Exposure to Digital Assets
Given the growth of markets for cryptocurrencies and other blockchain-based assets, often referred to as “digital assets,” we see growing interest from traditional investment managers in gaining exposure to this emerging asset class. We have seen development of many new products and service offerings to facilitate institutional investment in digital assets over the past year. With the recent announcement of the first bitcoin-exchange traded fund, this week, we expect continued and expansive growth in this area. This article aims to serve as an introductory guide to digital asset investing for institutional investors by describing at a high level the available service offerings and potential avenues for investment managers to gain exposure to the digital assets space.
Fireside Chat: Earning Public Trust Amid Heightened Tech Regulation
On October 19, 2021, Sidley partner Alan Raul engaged in a fireside chat with Julie Brill, Corporate Vice President, Chief Privacy Officer, and Deputy General Counsel of Microsoft at the Reuters Events’ Legal Leaders 2021 Conference. (more…)
How Artificial Intelligence Manufacturers Can Protect Themselves Against Future Negligence Claims
Innovative medical devices have changed the healthcare landscape and will continue making dramatic improvements in patient care. Nevertheless, the growth of such devices will inevitably lead to increased litigation over their alleged failures. All companies developing healthcare tech therefore need to consider measures to protect themselves against potential claims. (more…)
