On July 18, 2023, Singapore’s data protection authority published proposed guidelines on the use of personal data in artificial intelligence (AI) systems. The guidelines will be up for public consultation until August 31, 2023, and aim to address how Singapore’s privacy laws will apply to organizations which develop or deploy AI systems. The draft guidelines underscore the significance placed by the privacy regulator on the need to ensure personal data protection, without discouraging organizations from responsibly using AI systems in their businesses. Accordingly, organizations interested in using AI can use the guidelines for insight into what privacy expectations lie in store once the guidelines are finalized.
On July 13, Sidley and OneTrust DataGuidance hosted a webinar titled “The Finalization of the EU-U.S. Data Privacy Framework.” The discussion with key players in international data transfers included topics such as significant points and implications of the European Commission Adequacy Decision for the Data Privacy Framework, what organizations should know about the Framework’s Principles, consideration of factors and logistics for signing up for the Framework (including interplay with current Privacy Shield membership), next steps in the EU and UK processes, and other internal data transfer developments, including adequacy decision for the UK-U.S. Data Bridge.
Just before Americans began their Fourth of July holiday, the U.S. Commodity Futures Trading Commission (CFTC) Division of Enforcement Director announced that the division has established two key task forces: the Cybersecurity and Emerging Technologies and the Environmental Fraud Task Force.1 Both task forces will be staffed with attorneys and investigators across the Division of Enforcement with the goal of serving as subject matter experts and prosecuting cases. As a result, CFTC registrants should be prepared for heightened focus on cybersecurity and environmental fraud, particularly in the derivatives and relevant spot markets.
On May 18, 2023, the Federal Trade Commission (“FTC”) issued its 2023 Policy Statement on Biometric Information and Section 5 of the FTC Act (the “Policy Statement”) describing the agency’s concerns about these fast-proliferating technologies and articulating a set of compliance obligations for businesses that develop or use biometric technologies. To address potential risks of bias, discrimination, and security associated with the collection or use of biometric information, the FTC wants businesses to, among other things, conduct pre-release risk assessments evaluating the potential for bias and other potential consumer harms, assess these risks on an ongoing basis, and evaluate and potentially audit third parties with access to a business’s biometric data.
On July 10, 2023, the European Commission issued its Final Implementing Decision granting the U.S. adequacy (“Adequacy Decision”) with respect to companies that subscribe to the EU-U.S. Data Privacy Framework (“DPF”).
On July 10, 2023, the European Commission published its final Adequacy Decision for EU-U.S. data transfers. The draft decision reflects the multi-year coordination between the EU and U.S. to identify and implement a lasting solution to facilitate international data transfers following the Court of Justice of the European Union’s judgment in Schrems II. The EU’s adequacy decision determines that the U.S., through the newly created EU-U.S. Data Privacy Framework, provides comparable safeguards to those of the EU and ensures an adequate level of protection for personal data transferred from the EU to certified organizations in the U.S.
On June 30, 2023, Hong Kong’s data protection authority (the Office of the Privacy Commissioner for Personal Data, or PCPD) issued an updated version of its Guidance on Data Breach Handling and Data Breach Notifications (the Guidance, accessible here), which aims to guide companies on how they respond to data breaches. In particular, the Guidance contains a new recommendation for companies to adopt written data breach response plans.
On 1 June 2023, the Australian Government published the Safe and Responsible AI in Australia: Discussion Paper (“Discussion Paper”) to seek public feedback on identifying the potential gaps in the existing domestic governance landscape and possible additional AI governance mechanisms to support the “safe and responsible” development of AI. As noted in the Discussion Paper, although AI has been identified as a “critical technology in Australia’s national interest”, AI adoption rates across Australia remain relatively low. A key aim of the Discussion Paper is to inform the Australian Government on the steps that should be taken on AI regulation in order to increase “community trust and confidence in AI”. The Discussion Paper addresses a broad range of AI technologies and techniques, such as self-driving cars and generative pre-trained transformers (also known as GPT), and notes that any AI regulatory framework would need to consider existing as well as possible future uses of AI and any ensuing risks. The Discussion Paper has an eight (8) week consultation period ending on 26 July 2023.