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U.S. State Law

14 August 2017

State Privacy Laws: New Jersey Passes Consumer Privacy Act

State laws governing the collection and use of personal information continue to proliferate. The latest comes from New Jersey, which on July 21, 2017, signed into law legislation that restricts a merchant’s ability to collect personal data of shoppers and share such data with third parties.  New Jersey’s Personal Information Privacy and Protection Act permits retailers to scan an identification card only for certain purposes—such as verifying the consumer’s identity—and requires retailers to store such data securely.  Further, a retailer may not share the data with a third party unless the retailer discloses its data-sharing practices to the consumer. (more…)

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05 July 2017

Illinois Becomes the First State to Pass a Geolocation Privacy Protection Bill

On June 27, 2017, the Illinois General Assembly passed a bill seeking to limit the collection, use, retention, or disclosure of precise geolocation data from a mobile device without a person’s prior express and written consent.  This notable bill, the Geolocation Privacy Protection Act (“GPPA”), is on its way to Illinois Governor Bruce Rauner’s desk – although it is unclear if it will be signed or vetoed.  If signed, this bill would mark the first state geolocation privacy protection bill in the country—and represent the most stringent requirements related to geolocation data in the nation, potentially creating complex issues for the rapidly proliferating variety of mobile Internet of Things devices.  (more…)

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26 June 2017

NYDFS Issues FAQs for Recently Issued Cybersecurity Regulations

On June 20, 2017, the New York State Department of Financial Services (“NYDFS”) expanded its set of frequently asked questions (“FAQs”) and answers concerning its recently finalized Cybersecurity Regulations (23 NYCRR 500.01), which set forth minimum requirements for NYDFS-regulated entities to address cybersecurity risk.  The now 17 questions included in the release address the types of entities that fall within the scope of the Regulations, the notice requirements attending a Cybersecurity Event (as defined in the Regulations), the annual certification requirement, and additional specific elements of the rules. (more…)

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09 May 2017

Sidley’s Third Annual Privacy and Cybersecurity Roundtable

On April 18 in the DC office, Sidley hosted the firm’s third annual Privacy and Cybersecurity Roundtable for over 70 clients. Speakers included a senior representative of the European Data Protection Supervisor, senior officials from the Office of the New York State Attorney General and the Federal Trade Commission, legal, policy and compliance leaders from Facebook and Gannett, along with several members of the firm’s privacy, securities law and governance groups. (more…)

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10 April 2017

New Mexico Enacts Breach Notification and Data Security/Secure Disposal Law, While Tennessee Clarifies Encryption Exception

New Mexico has become the 48th state to enact a data breach notification law, which also includes data security requirements. The Data Breach Notification Act, signed by Governor Martinez on April 6, 2017, requires notification within 45 days of discovery of a security breach, or “unauthorized acquisition” of computerized personal information, subject to the needs of law enforcement. A security breach is also limited to unencrypted data or encrypted data when the decryption key is compromised. Personal data protected by the law includes Social Security numbers, driver’s license numbers, government-issued identification numbers, account, credit card or debit card number paired with the security code or other pin, and biometric data.

(more…)

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17 March 2017

NAIC creates new Innovation and Technology (EX) Task Force

The National Association of Insurance Commissioners (NAIC) has created a new task force to monitor technology, data collection and Cybersecurity developments in the insurance industry.  The Innovation and Technology (EX) Task Force (IT Task Force) was formed on March 9, 2017 and reports directly to the NAIC’s Executive Committee.  The  IT Task Force will appoint and oversee the work of the following NAIC groups:  the Big Data Working Group, the Cybersecurity Working Group and the Speed-to-Market Working Group.  According to the NAIC’s March 9, 2017 press release, the IT Task Force’s purpose is to help insurance regulators stay informed about technology-related developments, products and services in the insurance industry, including start-up companies, and to ensure they meet consumer expectations and ensure consumer protections.  The press release notes that annual investment in insurance technology (InsurTech) has increased to more than $2.5 Billion and continues to grow.

(more…)

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28 February 2017

NYDFS issues final cybersecurity regulations, setting new industry standard for cybersecurity controls

On February 16, 2017, the New York State Department of Financial Services (the “NYDFS”) issued its final regulations setting forth minimum requirements for NYDFS-regulated entities to address cybersecurity risk (“Final Regulations”).  The NYDFS issued the Final Regulations after considering feedback and criticism received during two comment periods  — one following the NYDFS’s initial publication of the proposed regulation (on September 13, 2016) and a second comment period after the NY DFS published a revised version of the regulation (on December 28, 2016.)

The Final Regulations will be effective as of March 1, 2017, with a transitional period of 180 days from that date for Covered Entities to comply with the Final Regulations, except for certain enumerated provisions for which longer compliance periods are specified.  The annual certification of compliance (covering the prior calendar year) will be required beginning on February 15, 2018.

(more…)

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05 January 2017

NYDFS Revises Cybersecurity Regulations Incorporating Risk-Based Approach; Maintains Prescriptive Requirements and Certifications

On December 28, 2016, the New York State Department of Financial Services (the “NYDFS”) issued revised proposed regulations setting forth minimum requirements for NYDFS-regulated entities to address cybersecurity risk (“Revised Proposed Regulations”).  The NYDFS issued the Revised Proposed Regulations after considering feedback and criticism submitted during a 45-day comment period to address the initial proposal, issued on September 13, 2016.  The agency has announced an additional and final 30-day comment period from the date of publication to address new comments not previously raised in the original comment process.

(more…)

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27 December 2016

NYDFS to Delay New Financial Cybersecurity Rules

After having received over 150 comments on proposed cybersecurity regulations, the New York Department of Financial Services will delay implementation and initiate a new round of notice and comment on a further revised version of cybersecurity regulations. As we reported previously, NYDFS proposed new cybersecurity regulations for the financial sector in September of this year, and the comment period closed mid-November. NYDFS previously announced that the new rules would be effective January 1, 2017 and that covered entities would have 180 days to comply. Reuters reports that NYDFS will now publish a further revised version of proposed regulations on December 28 for public comment with a new effective date of March 1, 2017.

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12 October 2016

Lessons for California Business Over Recorded Phone Calls

*This article originally appeared in L.A. Biz at bizjournals.com on Oct. 11, 2016.

Over the past few months, Taylor Swift and Kanye West’s feud over a recorded phone call has put the California Invasion of Privacy Act (CIPA) in the spotlight.

Who can record a call? What type of consent is needed? These questions are not just fodder for celebrity tabloids but fundamentally important issues for companies recording customer service calls.

CIPA, codified in California’s Penal Code Section 630 et seq., is an invasion of privacy statute originally designed to restrict wire-tapping and the recording of calls snatched from the airways at the dawn of the wireless telephone industry.

However, in recent years, plaintiffs’ lawyers have embraced Section 632.7 of the Act as a sword to attack companies that record customer service calls.

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