Privacy and Data Security

On July 24, 2019, the FTC announced a $5 billion settlement with Facebook to address Facebook’s alleged violations of the FTC Act and its 2012 consent order with the FTC. The settlement comes as no surprise to the privacy community – Facebook has been closely scrutinized by the public and regulators since the Cambridge Analytica data incident in March 2018 and indicated to investors earlier this year that it anticipated a fine from the FTC between $3 and $5 billion.

We have read the complaint, settlement, and press releases issued by the FTC and Facebook, and provide our thoughts below on what it means for business:
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The California Assembly had a busy May hearing amendments that might clarify (or further muddy) the California Consumer Privacy Act (“CCPA”). With four new bills approved by the Assembly in the final week of the month, May saw a total of 10 CCPA-related bills pass through the Assembly and on to the Senate. We covered a number of these in our last update. Here’s a rundown of the 10 bills:
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On May 29, 2019, Nevada’s SB 220[1] became law, amending Nevada’s Privacy Law (2017).[2] The existing Nevada Privacy Law is similar to California’s Online Privacy Protection Act (2004), by requiring a conspicuously posted privacy policy. The new SB 220 resembles the new California Consumer Privacy Act (“CCPA”) but is more narrow in application and scope.


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The Office of the California Attorney General (AG) made its fourth stop on its statewide California Consumer Privacy Act listening tour, holding in Los Angeles a public forum on the CCPA. The forums invite public comment as the AG prepares regulations for implementing and enforcing the law. Although the AG specifically requested comment on the seven areas identified in the law for the AG’s regulation,[1] it was clear that some categories caught the attention of the public more than others. And even though the forum was structured to allow participants to provide ideas and suggestions (the AG did not respond to comments or questions presented), most commentators asked for clarity and specific direction from the AG regulations, to help decipher the reach of CCPA and its compliance obligations.


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Once upon a time, Larry Page said “you can’t have privacy without security.” California clearly agrees and may test the sincerity of Mr. Page and other tech leaders innovating in the field of connected devices with new legislation signed by Governor Brown in September.

With the ink barely dry on the infamous California Consumer Privacy Act (the CCPA)—a first-of-its-kind data privacy bill in the United States—Brown signed a new Internet of Things cybersecurity bill into law, SB 327. Perhaps not so coincidentally, both laws will take effect on January 1, 2020, marking a substantial compliance deadline for technology companies big and small.


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For the fourth time, the Federal Trade Commission (FTC) has reached a consent agreement with a company for alleged misrepresentations regarding Privacy Shield certification. A California-based company, ReadyTech Corporation, agreed to a settlement whereby it is “prohibited from misrepresenting its participation in any privacy or security program sponsored by a government or any self-regulatory or standard-setting organization, including but not limited to the EU-U.S. Privacy Shield framework and the Swiss-U.S. Privacy Shield framework.” Privacy Shield is one of a few mechanisms that are available to U.S. companies for the lawful transfer of personal data from the European Union and Switzerland to the United States pursuant to applicable data protection laws including the new General Data Protection Regulation (GDPR). As part of the process, companies must self-certify with the Department of Commerce (DoC) and then annually re-certify that the company is Privacy Shield compliant.

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