On July 6, 2021, Connecticut enacted a new law (Public Act 21-119) that creates a safe harbor for companies that followed certain cybersecurity protocols in the event there’s a security breach. … Continue Reading
On April 14, 2021, the New York Department of Financial Services (NYDFS) announced a $3 million settlement with insurance company National Securities Corp. (NSC), relating to violations of three different requirements of the NYDFS cybersecurity regulation during the period 2018 to 2020.… Continue Reading
On December 18, 2020, the US Department of the Treasury (Office of the Comptroller of the Currency), Federal Reserve and Federal Deposit Insurance Corporation (FDIC) jointly announced a 53-page proposed rule that would require banks to notify their regulators within 36 hours of a “computer-security incident” that rises to the level of a “notification incident.” The proposed rule would also affect companies that provide certain services to those banks, including data processing. Those service providers would be required to notify “at least two individuals at affected banking organization customers immediately after the bank service provider experiences a computer-security incident that … Continue Reading
Although California has recently captured the lion’s share of attention with respect to privacy and security, on October 23, 2019, New York’s amended security breach law goes into effect, and on March 1, 2020, new security safeguards go live (N.Y. S.B. 5575). Anyone with personal information about a New York resident is potentially affected by these far-reaching amendments.
Breach Law Changes
Readers may recall that New York’s security breach notification law (N.Y. Gen. Bus. Law § 899-aa) differs from most states’ law in several ways including (1) using separate definitions of “personal information” and “private information;” and (2) providing factors … Continue Reading
We are pleased to report that Norton Rose Fulbright has been shortlisted for cyber law firm of the year at the 2019 Insurance Insider Cyber Rankings Awards. Many thanks to everyone who has voted for us so far. The winner will be determined from the results of a wide-ranging survey of insurers and brokers and will be announced on 20 September 2019. We encourage our insurer and broker clients and contacts to respond to the survey if they have not already done so.… Continue Reading
On Friday, July 12, 2019, the Wall Street Journal reported that Federal Trade Commission and Facebook reached a settlement to resolve Facebook’s privacy issues surrounding the Cambridge Analytica disclosure discovered last year. The settlement imposes a US$5 billion dollars on the tech giant, which represents roughly 9% of Facebook’s total yearly revenue and is the largest civil and privacy fine ever imposed by the FTC. The fine largely surpasses the FTC’s previous imposed fine in a privacy action, when the FTC fined Google US$22.5 million to settle claims it misrepresented privacy assurances to Safari users.… Continue Reading
Following the now famous €50m fine imposed on Google LLC in January 2019, the French Data Protection Authority (the CNIL) published a decision taken on 28 May 2019 imposing a fine of €400,000 on SERGIC, a company specialised in real estate development, purchase, sale, rental and property management.… Continue Reading
On June 13, 2019 Measures for Personal Data Cross-Border Transfer Security Assessments (Draft for Comment) (Measures) were issued by the Cyberspace Administration of China, along with an invitation for submissions to be made as part of a public consultation. The Measures lay down stricter requirements in relation to cross-border transfers of personal data with the intention to better safeguard internet users’ rights, public interests and national security.
The Measures set out a number of general requirements and implementing provisions for aspects of a network operator’s assessment obligation, assessment standards and reporting procedures. They also introduce specific requirements for contracts … Continue Reading
The UK Supreme Court has confirmed that permission has been granted to Morrisons for it to appeal against the judgment of the Court of Appeal in Morrison Supermarkets PLC v Various Claimants  EWCA Civ 2338.… Continue Reading
On January 21,2019 the French data protection authority (the CNIL) imposed a major fine on the U.S. Google entity, Google LLC. It follows two complaints filed as soon as the GDPR came into force by two consumer rights associations, None of Your Business and La Quadrature du Net.
The two-year transitional period under the New York State Department of Financial Services (“DFS”) Cybersecurity Regulation, 23 NYCRR 500 (the “Regulation”), will expire on March 1, 2019, with the final remaining requirement becoming effective. Entities covered by the Regulation that utilize third party service providers, which include not only banks and insurers, but also other financial services institutions and licensees regulated by the DFS, will be required to implement third-party risk management programs by March 1.… Continue Reading
On November 21, 2018, the Pennsylvania Supreme Court broke new ground by holding that employers have a legal duty to take reasonable care to safeguard its employees’ sensitive personal information from cyberattacks. Dittman v. UPMC, 2018 Pa. LEXIS 6072199 (Pa. Nov. 21, 2018).… Continue Reading
The Court of Appeal has upheld a decision of the High Court holding that an employer can be vicariously liable for data breaches caused by the actions of an employee, even where the employee’s actions were specifically intended to harm the employer. This decision is significant as it means a company can be held liable to compensate affected data subjects for loss caused by a data breach, even where the company has committed no wrongdoing and regardless of the employee’s motive.… Continue Reading
A judgment handed down today by the English High Court will be welcomed by UK data controllers. Lloyd v Google  EWHC 2599 represents a corollary to recent case law expanding the circumstances in which litigation may be brought in relation to breaches of data protection legislation.
Most notably, the case:
- reinforces the need for “damage” to be proven by claimants before compensation can be obtained in these circumstances; and
- makes clear that the courts will not permit representative claims to be brought on behalf of a potentially large population of claimants without close scrutiny of the basis of those
On July 23 and 25, 2018, the U.S. Department of Homeland Security (DHS) held public briefings about an attempt by a state-sponsored Russian hacking group to target control systems for U.S. electrical grids and power plants. DHS’ webinar explained that the hackers obtained access to vendors providing computer services to electric utilities companies. This initial access enabled the hackers to gain entry to power company control systems through a complex series of security compromises lasting quite some time. … Continue Reading
On Thursday, April 26, 2018, the Massachusetts Senate unanimously passed a data breach protection bill that strengthens consumer protections after security breaches involving consumer credit reporting agencies. If passed, the proposed legislation would amend Massachusetts’s current breach notification law. The bill aims to help consumers protect their sensitive information before, during, and after a data breach.… Continue Reading
Starting on November 1, organizations across Canada subject to the Personal Information Protection and Electronic Documents Act (PIPEDA) will be required to provide notice of certain privacy breaches.
The breach reporting requirements relate to a “breach of security safeguards,” which is defined in PIPEDA as: the loss of, unauthorized access to or unauthorized disclosure of personal information resulting from a breach of an organization’s security safeguards, or from a failure to establish those safeguards.
If it is reasonable to believe the breach of security safeguards creates a real risk of significant harm to the individual:
- Organizations will be required to
On March 8, 2018, the Ninth Circuit issued its highly anticipated decision in In re Zappos.com, Inc., finding that allegations of future risk of identity theft from a data breach are sufficient to confer standing. This decision fuels an ongoing circuit split, pitting the D.C., Sixth, Seventh and now Ninth Circuits against the Second, Fourth, and Eighth Circuits over whether the mere exposure of personal information – without actual identity theft or credit/debit card fraud – establishes Article III standing.… Continue Reading
The High Court in London has handed down a judgment establishing that, as a matter of English law, a company can be held vicariously liable in respect of data breaches caused by its employees.
On September 2, 2017, the Government of Canada published proposed new data breach regulations in the Canada Gazette.
These regulations set out specifics regarding the mandatory data breach reporting requirements under the Personal Information Protection and Electronic Documents Act.
The PIPEDA Amendments were passed in June, 2015 but are not yet in force.
The Regulations set out the proposed requirements for the reporting of data breaches of security safeguards (each, a Breach). Under the PIPEDA Amendments, a report to the Privacy Commissioner of Canada is required if it is reasonable in the circumstances to believe that the … Continue Reading
The Equifax breach will likely devour the entire breach news cycle in the near term, given the size of the incident and that it gets to the essence of the company’s business of maintaining some of the most sensitive consumer information. Still, in what for the moment might seem like a more pedestrian risk, companies continue to be affected by ransomware. One of the unique aspects of ransomware is that it does not involve just stealing information, but makes the information unavailable to the business. If critical information is unavailable, there is operational impact and often a material effect that … Continue Reading
Earlier this month, Delaware revamped its data breach notification law, with changes to go into effect April 14, 2018. Most notably, the new law requires any entity that has suffered a data breach that includes social security numbers to provide free credit monitoring services to affected residents for one year. The entity must provide all information necessary for the resident to enroll in such services as well as instructions for how to implement a credit freeze. This makes Delaware the second state to require credit monitoring services be provided to residents at no cost following a breach. (Connecticut has a … Continue Reading
On May 23, 2017, it was announced that Target Corporation had settled the investigation initiated by the Attorneys General of 47 states and the District of Columbia resulting from its 2013 data security incident. Besides the $18.5 million being paid (the largest State AG data breach settlement amount to date), it is the promised remedial measures that are of most interest to those following data breach enforcement actions.… Continue Reading
The Superior Court of Pennsylvania last month dismissed a class action lawsuit, Dittman v. UPMC, brought by employees of the University of Pittsburgh Medical Center (“UPMC”) for a 2014 data breach. The breach impacted nearly 62,000 UPMC employees and resulted in at least 788 fraudulent tax filings. The court held that UPMC had no duty to safeguard the electronically-stored personal and financial information of its employees. This decision presents a practical analysis of the challenges facing large employers who need to store employee information electronically while also guarding against the ever-present risk of a data breach.… Continue Reading