Privacy & Information Security Law Blog

On August 8, 2022, Commissioner Noah Joshua Phillips announced that he plans to resign from the Federal Trade Commission in the fall after serving four years with the agency. Phillips was appointed by former President Donald Trump in May 2018 and is one of the two Republican commissioners on the FTC alongside Commissioner Christine S. Wilson. Commissioner Phillips had served as chief counsel to Sen. John Cornyn (R-Texas) before joining the FTC.

On November 17, 2020, the Senate passed by unanimous consent H.R. 1668, the Internet of Things (“IoT”) Cybersecurity Improvement Act (the “IoT Bill”). The House previously passed the IoT Bill in September after negotiations with the Senate to resolve differences in their respective bills. The IoT Bill now heads to the President’s desk for signature.

On September 17, 2020, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, along with Senators John Thune (SD), Deb Fischer (NE) and Marsha Blackburn (TN) introduced the Setting an American Framework to Ensure Data Access, Transparency, and Accountability (SAFE DATA) Act (“the Bill”). The Bill marks an official introduction of an update of Senator Wicker’s draft United States Consumer Data Privacy Act of 2019, which was circulated last November.

On August 6, 2020, President Trump signed executive orders imposing new economic sanctions under the International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.) and the National Emergencies Act (50 U.S.C. § 1601 et seq.) against TikTok, a video-sharing mobile application, and WeChat, a messaging, social media and mobile payments application. The orders potentially affect tens of millions of U.S. users of these applications and billions of users worldwide.

On August 10, 2020, European Commissioner for Justice Didier Reynders and U.S. Secretary of Commerce Wilbur Ross released a joint press statement (the “Statement”) following the ruling of the Court of Justice of the European Union (“CJEU”) in the Schrems II case.

On June 11, 2020, the California Senate amended AB-713 to the California Consumer Privacy Act of 2018 (“CCPA”). The Senate’s recent amendments impose new contractual obligations on the use or sale of de-identified information and modify the exemption from the CCPA for information used for public health purposes. The California Assembly had originally passed AB-713 in 2019 to (1) explicitly carve out from coverage by the CCPA information de-identified pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Privacy Rule, and (2) expand the CCPA exemption for information used for research purposes. AB-713 is intended to “preserv[e] access to information needed to conduct important health-related research that will benefit Californians.” The revised version of AB-713 containing the Senate’s recent amendments has not yet passed either house of the California legislature.

On June 1, 2020, the Office of the California Attorney General submitted the final California Consumer Privacy Act (“CCPA”) proposed regulations to the California Office of Administrative Law (“OAL”). Notably, the final proposed regulations are the same as the draft issued in March. The OAL must review the rulemaking package for procedural compliance with California’s Administrative Procedure Act. The OAL’s typical 30-day review period has been extended by 60 calendar days under an executive order related to the COVID-19 pandemic. Assuming OAL approves the regulations, the final text will be filed with the Secretary of State.

On May 14, 2020 Democrats in both the House and Senate introduced the Public Health Emergency Privacy Act (“the Act”). In the House, the Act was sponsored by Representatives Jan Schakowsky (IL), Anna Eshoo (CA) and Suzan DelBene (WA), and in the Senate was sponsored by Senators Richard Blumenthal (CT) and Mark Warner (VA). Similar to the recently-introduced COVID-19 Consumer Data Protection Act of 2020, the Act would put temporary rules in place regarding the collection, use and disclosure of emergency health data used to combat the spread of the coronavirus. The rules imposed by the Act would only apply during the course of the Public Health Emergency as declared by the Secretary of Health and Human Services (“HHS”) and would only apply to specific uses of certain personal data.

On May 1, 2020, the White House issued an executive order on securing the United States bulk-power system (the “Order”), finding that foreign adversaries are creating and exploiting vulnerabilities in the U.S. bulk-power system (“BPS") and determining that unrestricted foreign supply of BPS equipment constitutes an “unusual and extraordinary threat” to national security. The Order imposes restrictions on certain transactions involving BPS equipment in which foreign adversaries of the United States have an interest.

As part of its regulatory review of the Gramm-Leach-Bliley Act (“GLB”) Safeguards Rule, the Federal Trade Commission will hold a workshop, Information Security and Financial Institutions: An FTC Workshop to Examine the Safeguards Rule. The workshop, originally scheduled for May, has been postponed until July 13, 2020.

On April 30, 2020, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, along with Senators John Thune (SD), Jerry Moran (KS) and Marsha Blackburn (TN), announced plans to introduce the COVID-19 Consumer Data Protection Act of 2020 (“the bill”), which would put temporary rules in place regarding the collection, processing and transfer of data used to combat the spread of the coronavirus. The bill would only apply during the course of the COVID-19 Public Health Emergency as declared by the Secretary of Health and Human Services, and would only apply to specific uses of certain personal data.

On April 9, 2020 the U.S. Senate Committee on Commerce, Science and Transportation held a “paper hearing” entitled Enlisting Big Data in the Fight Against Coronavirus. A “paper hearing” consists of the committee members submitting opening statements and witnesses submitting testimony, which were posted on the Committee’s website. Witnesses were required to submit answers to member questions last week.

On March 26, 2020, Washington D.C. enacted bill number B23-0215, amending D.C.’s data breach notification law (the “Bill”). Among other requirements, the Bill requires the provision of identity theft prevention services in certain data breaches, establishes a new regulatory reporting requirement in the event of a cognizable data breach affecting 50 or more residents of D.C., and imposes certain data security requirements on covered businesses.

On March 18, 2020, Washington Governor Jay Inslee signed into law a bill amending Washington State’s Agency Breach Notification Law (“Agency Breach Law”). The Agency Breach Law applies to all state and local agencies, including state and municipal offices, departments, bureaus and commissions.

On March 12, 2020, the Washington State Legislature passed SB 6280, which establishes safeguards for the use of facial recognition technology by state and local government agencies. Its stated goal is to allow the use of facial recognition services in ways that benefit society, but prohibit uses that put freedoms and civil liberties at risk.

On March 12, 2020, Senator Jerry Moran (KS) introduced a comprehensive federal privacy bill entitled the Consumer Data Privacy and Security Act of 2020 (the “Act”).

Hunton’s Centre for Information Policy Leadership (“CIPL”) reports on the top privacy-related priorities for this year:

1.  Global Convergence and Interoperability between Privacy Regimes

Around the world, new privacy laws are coming into force and outdated laws continue to be updated: the EU General Data Protection Regulation (“GDPR”), Brazil’s Lei Geral de Proteção de Dados Pessoais (“LGPD”), Thailand’s Personal Data Protection Act, India’s and Indonesia’s proposed bills, California’s Consumer Privacy Act (“CCPA”), and the various efforts in the rest of the United States at the federal and state levels. This proliferation of privacy laws is bound to continue.

As reported by Bloomberg Law, on March 12, 2020, the Washington House and Senate were unable to reach consensus on the Washington Privacy Act.  As we reported this January, lawmakers in Washington state introduced a new version of the Washington Privacy Act, a comprehensive data privacy bill.  In the past two months, the much-discussed bill flew through the Washington Senate and House, but ultimately failed to pass.

The bill’s House version would have provided for a private right of action while the bill’s Senate version would have given sole enforcement authority to the state ...

The District Court for the District of Columbia recently invalidated certain Department of Health and Human Services (“HHS”) rules regarding an individual’s access to their protected health information (“PHI”). The Court held that: (1) individuals can only direct their electronic PHI to third parties (and not hard copy PHI); and (2) the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Omnibus Rule provisions regarding the caps on fees that HIPAA-covered entities may charge for such requests did not follow relevant administrative law procedures.

On February 12, 2020, Senator Kirsten Gillibrand announced a plan to create a Data Protection Agency through her proposed legislation, the Data Protection Act of 2020. According to Senator Gillibrand, the purpose of the law is to create the new agency and bring the protection of privacy and freedom into the digital age.

On January 16, 2020, the Senate approved the United States-Mexico-Canada Agreement (“USMCA”), sending it to the President’s desk for ratification. Mexico ratified the Agreement in June 2019, and Canada is expected to follow suit later this month. To coincide with its ratification, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth issued a white paper entitled What Does the USMCA Mean for a U.S. Federal Privacy Law?

On January 13, 2020, lawmakers in Washington state introduced a new version of the Washington Privacy Act, a comprehensive data privacy bill, in both the state Senate and House of Representatives. It would apply to companies conducting business in Washington or who provide products or services to Washington residents.

On December 18, 2019, the House Energy and Commerce Committee released a bipartisan staff-level draft privacy bill (“the bill”). While comprehensive in scope, much of the key language in the bill was left in brackets, meaning the two sides have not yet reached a compromise on final language.

On November 29, 2019, Senator Roger Wicker (MS), Chairman of the Senate Commerce Committee, circulated a draft of a comprehensive federal privacy bill entitled the United States Consumer Data Privacy Act of 2019 (“the Bill”).

On November 26, 2019, Senate Commerce Committee Ranking Member Maria Cantwell (WA), alongside Senators Brian Schatz (HI), Amy Klobuchar (MN) and Ed Markey (MA), unveiled a new comprehensive federal privacy bill entitled the Consumer Online Privacy Rights Act (“COPRA”).

The bill would create a new bureau within the Federal Trade Commission  focusing on privacy and data security to enforce the law and promulgate new rules and regulations in the space. It also would provide enforcement authority for state attorneys general as well as a private right of action. It would preempt only state laws that “directly conflict with the provisions of the Act,” and specifically notes that state laws that afford a “greater level of protection to individuals” would not be considered in direct conflict.

On November 18, 2019, the ranking members from four Senate Committees (Senator Maria Cantwell (WA) from Commerce, Senator Dianne Feinstein (CA) from Judiciary, Senator Sherrod Brown (OH), and Senator Patty Murray (WA) from Health, Education, Labor and Pensions) released a set of “core principles” for federal privacy legislation.

On September 6, 2019, the National Institute of Standards and Technology (“NIST”) released a preliminary draft of its Privacy Framework: A Tool for Improving Privacy Through Enterprise Risk Management (“Privacy Framework”).

There are six bills pending before the California legislature that would amend the California Consumer Privacy Act of 2018 (“CCPA”). These bills could significantly alter the law’s application and associated compliance obligations, including with respect to HR data, B2B customer data, loyalty programs and the definition of “personal information.” As of September 12, three bills have passed out of the California Senate and are pending before the Assembly for a concurring vote: AB 874, AB 1146 and AB 1564. The California legislature must vote on all pending CCPA ...

Earlier this month, the U.S. Department of Justice (“DOJ”) published a white paper entitled “Promoting Public Safety, Privacy, and the Rule of Law Around the World: The Purpose and Impact of the CLOUD Act” (“White Paper”). The Clarifying Lawful Overseas Use of Data Act (the “CLOUD Act”) was enacted in March 2018 by the U.S. government to aid foreign and U.S. investigators in obtaining access to electronic information related to serious crimes and held by service providers. The CLOUD Act authorizes the U.S. to enter into bilateral agreements with foreign countries that abide by a baseline standard for rule-of-law, privacy and civil liberties protections to streamline processes for obtaining electronic evidence. The CLOUD Act also codifies the principle that a company subject to U.S. jurisdiction “can be required to produce data the company controls, regardless of where it is stored at any point in time.”

On March 27, 2019, Utah Governor Gary Herbert signed HB57, the first U.S. law to protect electronic information that individuals have shared with certain third parties. The bill, called the “Electronic Information or Data Privacy Act,” places restrictions on law enforcement’s ability to obtain certain types of “electronic information or data” of a Utah resident, including (1) location information, stored data or transmitted data of an electronic device, and (2) data that is stored with a “remote computing service provider” (i.e., data stored in digital devices or servers).  The law provides for situations in which law enforcement may obtain such information without a warrant.

On March 5, 2019, the Federal Trade Commission announced that it is seeking comment on proposed changes to the FTC’s Safeguards Rule and Privacy Rule under the Gramm-Leach-Bliley Act (“GLB”).

The proposed amendments to the Safeguards Rule, which went into effect in 2003 and imposes data security obligations on financial institutions over which the Commission has jurisdiction, are based primarily on the cybersecurity regulations issued by the New York Department of Financial Services and the insurance data security model law issued by the National Association of Insurance Commissioners. The proposed changes would add more detailed requirements on how financial institutions must protect customer information.

On August 29, 2018, Bloomberg Law reported that four Senate Commerce Committee members are discussing a potential online privacy bill. The bipartisan group consists of Senators Jerry Moran (R-KS), Roger Wicker (R-MS), Richard Blumenthal (D-CT) and Brian Schatz (D-HI), according to anonymous Senate aides.

On May 14, 2018, the Department of Energy (“DOE”) Office of Electricity Delivery & Energy Reliability released its Multiyear Plan for Energy Sector Cybersecurity (the “Plan”). The Plan is significantly guided by DOE’s 2006 Roadmap to Secure Control Systems in the Energy Sector and 2011 Roadmap to Achieve Energy Delivery Systems Cybersecurity. Taken together with DOE’s recent announcement creating the new Office of Cybersecurity, Energy Security, and Emergency Response (“CESER”), DOE is clearly asserting its position as the energy sector’s Congressionally-recognized sector-specific agency (“SSA”) on cybersecurity.

On May 8, 2018, Senator Ron Wyden (D–OR) demanded that the Federal Communications Commission investigate the alleged unauthorized tracking of Americans’ locations by Securus Technologies, a company that provides phone services to prisons, jails and other correctional facilities. Securus allegedly purchases real-time location data from a third-party location aggregator and provides the data to law enforcement without obtaining judicial authorization for the disclosure of the data. In turn, the third-party location aggregator obtains the data from wireless carriers. Federal law restricts how and when wireless carriers can share certain customer information with third parties, including law enforcement. Wireless carriers are prohibited from sharing certain customer information, including location data, unless the carrier has obtained the customer’s consent or the sharing is otherwise required by law.

On April 26, 2018, the U.S. Senate confirmed by unanimous consent all five pending nominees to the Federal Trade Commission. Once installed, the agency will have a full complement of Commissioners for the first time in nearly three years. The FTC will be comprised of three Republicans — Joseph Simons (Chairman), Noah Joshua Phillips and Christine Wilson — and two Democrats — Rebecca Kelly Slaughter and Rohit Chopra.

On March 15, 2018, the Trump Administration took the unprecedented step of publicly blaming the Russian government for carrying out cyber attacks on American energy infrastructure. According to a joint Technical Alert issued by the Department of Homeland Security and the FBI, beginning at least as early as March 2016, Russian government cyber actors carried out a “multi-stage intrusion campaign” that sought to penetrate U.S. government entities and a wide range of U.S. critical infrastructure sectors, including “organizations in the energy, nuclear, commercial facilities, water, aviation and critical manufacturing sectors.”

What were the hottest privacy and cybersecurity topics for 2017? Our posts on the EU General Data Protection Regulation (“GDPR”), EU-U.S. Privacy Shield, and the U.S. executive order on cybersecurity led the way in 2017. Read our top 10 posts of the year.

On October 19, 2017, the White House announced that President Donald J. Trump plans to nominate two individuals to serve as commissioners of the Federal Trade Commission. President Trump selected Joseph Simons to lead the FTC as its chairman for a seven-year term, beginning September 26, 2017. Simons’ background primarily has focused on antitrust matters. From June 2001 to August 2003, he led the FTC’s antitrust initiative as Director of the FTC’s Bureau of Competition.

On August 22, 2017, the National Infrastructure Advisory Council (“NIAC”) issued a report entitled Securing Cyber Assets: Addressing Urgent Cyber Threats to Critical Infrastructure (“NIAC Report”). NIAC was first created in 2001 shortly after the 9/11 attacks and advises the President on information security systems in banking, finance, transportation, energy, manufacturing and emergency government services. The NIAC Report notes that sophisticated and readily available malicious cyber tools and exploits have lowered the barrier to cost and increased the potential for successful cyber attacks. According to the NIAC Report, “[t]here is a narrow and fleeting window of opportunity before a watershed, 9/11-level cyber attack to organize effectively and take bold action.”

On May 11, 2017, President Trump signed an executive order (the “Order”) that seeks to improve the federal government’s cybersecurity posture and better protect the nation’s critical infrastructure from cyber attacks. The Order also seeks to establish policies for preventing foreign nations from using cyber attacks to target American citizens.

Read the full text of the Order.

On January 25, 2017, President Trump issued an Executive Order entitled “Enhancing Public Safety in the Interior of the United States.” While the Order is primarily focused on the enforcement of immigration laws in the U.S., Section 14 declares that “Agencies shall, to the extent consistent with applicable law, ensure that their privacy policies exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information.” This provision has sparked a firestorm of controversy in the international privacy community, raising questions regarding the Order’s impact on the Privacy Shield framework, which facilitates lawful transfers of personal data from the EU to the U.S. While political ramifications are certainly plausible from an EU-U.S. perspective, absent further action from the Trump Administration, Section 14 of the Order should not impact the legal viability of the Privacy Shield framework.

On December 1, 2016, the nonpartisan Commission on Enhancing Cybersecurity (the “Commission”), established in February 2016 by President Obama as part of a $19 billion Cybersecurity National Action Plan, issued its Report on Securing and Growing the Digital Economy (the “Report”), which includes recommended actions that the government and private sector can take over the next 10 years to improve cybersecurity.