On May 28, 2010, the FTC announced that it would again delay enforcement of the Identity Theft Red Flags Rule. This is the fifth time the Commission has announced an extension of the enforcement deadline, after most recently extending the deadline to June 1, 2010. The Red Flags Rule requires “creditors” and “financial institutions” that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect and respond to patterns, practices or specific activities – known as “red flags” – that could indicate ...
Federal Trade Commission Chairman Jon Leibowitz recently sent a letter to Congressman Edward Markey, Co-Chairman of the bipartisan Congressional Privacy Caucus, announcing that the FTC will address the privacy risks associated with the use of digital copiers. Congressman Markey had urged the FTC to investigate this issue after a CBS News exposé showed that almost every digital copier produced since 2002 stores on its hard drive images of documents that are “scanned, copied or emailed by the machine” – including documents with sensitive personal information.
The Office for Civil Rights (“OCR”) within the Department of Health and Human Services (“HHS”) has announced that it will more closely examine covered entities’ breach notification and risk mitigation plans. OCR noted that small and medium sized covered entities have been particularly vulnerable to data breaches. The National Institute of Standards and Technology (“NIST”) will publish a guide for covered entities that “outlines the steps to mitigate risks for data breaches, training for how to respond to breaches, and overall preparation in the event of a ...
The Russian Federation is considering amending the country’s data protection law, according to BNA’s Privacy Law Watch. Businesses have long complained that the law contains restrictions on data processing that are extremely difficult to meet. For example, the law requires affirmative written consent for most types of data processing. In the online context, this provision has been interpreted to require a consumer’s digital signature. A check box, which is an acceptable mechanism for expressing consent in the EU, for example, is deemed unacceptable in Russia. In ...
At a meeting held April 7-9, 2010, the Council on General Affairs and Policy of the Hague Conference on Private International Law adopted a document entitled 'Cross-Border Data Flows and Protection of Privacy' that outlines the organization's possible future work in the area of privacy and data protection law. The document contains an overview of international data protection initiatives of the last few years, and addresses various cross-border cooperation issues, including problems created by the difficulty of determining applicable law and jurisdiction in cross-border data flows. In
David Holtzman, a health information privacy specialist at the Office for Civil Rights (“OCR”) within the Department of Health and Human Services (“HHS”), stated at a health privacy conference on May 11, 2010, that OCR has been “vigorously” enforcing the Security Rule, which was promulgated pursuant to the Health Insurance Portability and Accountability Act (“HIPAA”). Prior to 2009, HHS divided civil enforcement responsibility for HIPAA between OCR, which enforced the HIPAA Privacy Rule, and the Centers for Medicare and Medicaid Services (“CMS”), which enforced the HIPAA Security Rule. In July 2009, the Secretary of HHS delegated authority to enforce the HIPAA Security Rule to OCR to “facilitate improvements by eliminating duplication and increasing efficiency.”
Following the first “hung parliament” since 1974, the UK is facing considerable legislative reform under the newly formed Conservative - Liberal Democrat coalition government. Although the parties appear to have differing opinions on a number of legislative issues, one issue that unites them is their commitment (at least in theory) to strengthening the current data protection regime implemented under the Labour government.
Each party’s manifesto states that, should it be elected, it will enhance the audit powers of the Information Commissioner (the UK data protection regulator). Currently, the Information Commissioner may audit government departments and public authorities suspected of violating data protection principles without their prior consent. The Conservatives and Liberal Democrats propose to extend the Information Commissioner’s audit powers to private sector organizations. This could be achieved in theory by secondary legislation.
According to a report issued by the EU Agency for Fundamental Rights (“FRA”), European data protection authorities lack sufficient independence and funding. In addition, DPAs impose few sanctions for violations of data protection laws. DPAs “are often not equipped with full powers of investigation and intervention or the capacity to give legal advice or engage in legal proceedings.” In a number of countries, including Austria, France, Germany, Latvia, the Netherlands, Poland and the UK, “prosecutions and sanctions for violations are limited or non-existing.” ...
On May 7, 2010, the data protection authority of the German federal state of North Rhine-Westphalia imposed a fine of €120,000 on Deutsche Postbank AG for illegal disclosure of customers’ bank account transaction data. The bank unlawfully allowed approximately 4,000 self-employed agents to access information on more than a million customer accounts for sales purposes.
“The Department of Commerce is back.” With those words Cameron Kerry, General Counsel of the U.S. Department of Commerce, made it clear the Department intends to take a leading role in shaping domestic privacy policy and representing U.S. privacy interests in international discussions. The announcement was made at the May 7, 2010, Department of Commerce symposium, “A Dialogue on Privacy and Innovation,” where the mostly business audience welcomed Mr. Kerry’s declaration with great enthusiasm.
Rejecting a defense based on compliance with the federal Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), a federal court in Ohio denied a medical clinic’s motion to dismiss invasion of privacy claims following the clinic’s disclosure of medical records to a grand jury. In Turk v. Oiler, No. 09-CV-381 (N.D. Ohio Feb. 1, 2010), plaintiff Turk had been under investigation for illegally carrying a concealed weapon and for having a weapon while under disability in violation of an Ohio law which provides that “no person shall knowingly acquire, have, carry, or use any firearm” if “[t]he person is drug dependent, in danger of drug dependence, or a chronic alcoholic.” Defendant Cleveland Clinic, where Turk was a patient, received a grand jury subpoena requesting “medical records to include but not be limited to drug and alcohol counseling and mental issues regarding James G. Turk.” When the Cleveland Clinic disclosed Turk’s medical records in response to this subpoena, Turk sued the clinic for violating his privacy rights.
On May 4, 2010, Congressmen Rick Boucher (D-VA) and Cliff Stearns (R-FL) introduced draft legislation designed to protect the privacy of personal information both on the Internet and in offline contexts.
The legislation would apply to any “covered entity,” which is defined as “a person engaged in interstate commerce that collects data containing covered information.” The term “covered information” is very broad and includes, but is not limited to, an individual’s first name or initial and last name, a postal address, a telephone number or an email address. Government agencies and entities that collect covered information from fewer than 5,000 individuals in any 12-month period (and do not collect sensitive information) would not be considered “covered entities” for purposes of the law.
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