Archives: Enforcement

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Deeper Dive: Security Incident Notification Under the New EU General Data Protection Regulation (GDPR)

As noted in the 2017 BakerHostetler Data Security Incident Response Report, the enactment of the EU General Data Protection Regulation (GDPR) represents the most significant change in European data protection law in more than 20 years. Coming into effect on May 25, 2018, the GDPR focuses on a number of core data protection principles and … Continue Reading

Deeper Dive: Be Prepared for Regulatory Investigations in the Wake of a Security Incident

Your company had a data security event. After an investigation, it was determined that notifications were required, and the incident was made public as a result. Notification letters were mailed and regulators were notified, all in accordance with the law. Your company also enhanced security measures and took other remedial action, so there is nothing … Continue Reading

FTC Nets $500,000 Settlement for Alleged Consent Order Violation Related to Online Data Collection Practices

On March 17, 2017, the Federal Trade Commission (FTC) announced that it had reached a $500,000 settlement with Upromise, a membership reward service aimed at families saving for college. The FTC had alleged that Upromise violated a 2012 FTC consent order by failing to make required disclosures about its data collection and use practices and … Continue Reading

FTC’s $2.2m Smart TV Settlement Signals Continued IoT Enforcement Focus

On February 6, 2017, the Federal Trade Commission announced that it had settled charges against VIZIO, Inc., a consumer electronics manufacturer of Internet-connected televisions. The FTC alleged that VIZIO unfairly tracked sensitive TV viewing data of millions of American consumers, and deceptively failed to disclose how the collected data was being used. This action was … Continue Reading

Finalized New York Department of Financial Services Cybersecurity Regulation to Take Effect March 1

On February 16, 2017, the New York Department of Financial Services (NYDFS) announced the release of its finalized Cybersecurity Requirements for Financial Services Companies (“Cybersecurity Regulation”), which will take effect on March 1, 2017. This final iteration, issued following an additional 30-day comment period, is in large part the same as the revised version dated … Continue Reading

FTC Goes After IoT Device Manufacturer for Alleged Security Vulnerabilities in Routers, IP Cameras

On January 6, the Federal Trade Commission (FTC) announced that it had filed a complaint against Taiwanese D-Link Corp. and its U.S. subsidiary, D-Link Systems Inc. (D-Link), alleging the company made deceptive claims about the security of its products and engaged in unfair practices that put U.S. consumers’ privacy at risk. The case is noteworthy for … Continue Reading

New York Department of Financial Services Issues Revised Cybersecurity Regulations

With the clock ticking down to the new year, on December 28, 2016, the New York State Department of Financial Services (NYDFS) released highly anticipated revisions to its proposed Cybersecurity Requirements for Financial Services Companies (the “Proposal”). As we previously reported, the NYDFS first announced the proposed regulations in September; at that time, they were … Continue Reading

FTC Settles with Ad Tech Company Over Deceptive Online Tracking Practices

On December 20, 2016, the Federal Trade Commission (FTC) announced that Turn Inc. agreed to settle charges that it misled consumers about its online tracking activities and failed to honor consumer opt-outs as described in its privacy policy. Background Turn is a digital advertising company that facilitates targeted marketing by commercial brands and ad agencies … Continue Reading

FCC Wades Back Into Data Privacy and Security for ISPs With Revised Privacy Proposal

Recently, Federal Communications Commission (FCC or Commission) Chairman Tom Wheeler circulated to the Commission a revised proposed order to regulate the data privacy and security practices of internet service providers (ISPs) (also known by the Commission as broadband internet access service (BIAS) providers). We previously wrote about the Commission’s initial proposal in this regard (available … Continue Reading

Latest Data Breach Settlement Illustrates Need for Companies to Prioritize Cybersecurity

On Aug. 5, 2016, the New York attorney general, Eric Schneiderman, announced a $100,000 settlement with an e-retailer following an investigation of a data breach that resulted in the potential exposure of more than 25,000 credit card numbers and other personal information. According to the investigation, on Aug. 7, 2014, in an all-too-common scenario, an … Continue Reading

Unanimous FTC Finds LabMD’s Data Security Practices Violated Section 5 of the FTC Act

On July 29, 2016, a unanimous Federal Trade Commission (“FTC” or “Commission”) issued its Opinion and Final Order reversing the decision of an administrative law judge (“ALJ”) and holding that LabMD engaged in “unfair” practices in violation of Section 5 of the FTC Act because it failed to provide reasonable and appropriate security for personal … Continue Reading

Court of Appeals Upholds FCC’s Net Neutrality Rules and Regulatory Authority

On June 14, 2016, the D.C. Court of Appeals ruled 2-1 in favor of the Federal Communication Commission’s (FCC) net neutrality rules, which the commission approved on February 26, 2015 (published March 12, 2015). This reclassified broadband internet access service (BIAS) as a telecommunications service under Title II of the Communications Act, affording the FCC … Continue Reading

German Data Protection Authority Issues Fines for Unlawful Cross-Atlantic Data Transfers

The Data Protection Authority of Hamburg, Germany has made good on its promise to audit cross-Atlantic data transfers in the wake of the October 2015 Safe Harbor decision.  On June 6, the Hamburg DPA announced that it had fined three companies for unlawful transfers of personal data from the EU to the United States.  According … Continue Reading

FCC’s Growing Privacy and Data Security Enforcement

The Federal Communications Commission (FCC) has had a busy 2015, and its presence in the data security regulatory enforcement space will likely continue to grow. Last year, the FCC named Travis LeBlanc as chief of the Enforcement Bureau. Since then, the FCC has brought three separate enforcement actions against companies for allegedly not safeguarding consumers’ … Continue Reading

German Data Protection Authorities Limit Use of Alternative Data Transfer Mechanisms in Light of Safe Harbor Decision

In the weeks since the October 6, 2015, Court of Justice of the European Union decision (“CJEU Decision”) that invalidated the EU-U.S. Safe Harbor framework, companies have been faced with the quandary of establishing legal alternatives for transferring personal data from Europe to the U.S. We have discussed alternative data transfer mechanisms such as standard … Continue Reading

Safe Harbor Is Dead, Long Live Standard Contractual Clauses?

For the past 15 years, the EU-U.S. Safe Harbor Framework has been one of the most popular data transfer mechanisms for organizations that engage in cross-border transfers of EU personal data to the United States. In the aftermath of the recent invalidation of the Safe Harbor Framework by the Court of Justice of the European … Continue Reading

What Now? What Next? FAQs and Answers Regarding the Safe Harbor Decision

As we discussed in our blog post last week, on October 6, 2015, the Court of Justice of the European Union issued a judgment that invalidated the EU-U.S. Safe Harbor Framework. For the past 15 years, thousands of companies have been using the Safe Harbor Framework to transfer personal data from the EU to the … Continue Reading

EU High Court Invalidates Safe Harbor Framework for Cross-Border Data Transfers

On October 6, 2015, the Court of Justice of the European Union (CJEU) issued a highly anticipated judgment that has the potential to impact how thousands of companies transfer data from the EU to the United States. The Court’s decision effectively invalidates the European Commission’s “adequacy” determination with respect to the U.S.-EU Safe Harbor Framework, … Continue Reading

CA AG Requires Chief Privacy Officer and Privacy Compliance Program

California’s Attorney General, Kamala Harris, has required Houzz, a home décor information and e-commerce website and mobile app publisher, to hire a chief privacy officer (CPO), conduct a company-wide privacy assessment, and maintain a privacy compliance program to settle a lawsuit that alleged Houzz failed to follow California law that requires disclosure of the recording … Continue Reading

Federal Trade Commission Joins with Industry Experts to Provide Start-Ups and Developers with Practical Advice at “Start with Security” Conference

The FTC has a history of offering practical advice to organizations and consumers to protect against security threats and related concerns, and is continuing this practice with the upcoming – and very first – “Start with Security” conference, taking place at the University of California’s Hastings College of the Law on September 9, 2015. The … Continue Reading

Federal Trade Commission Continues Its Enforcement Campaign Against False Safe Harbor Claims

Reiterating its commitment to enforcing the U.S.-EU and U.S.-Swiss Safe Harbor Frameworks, the Federal Trade Commission announced on Monday that it has reached settlements with 13 companies alleged to have misled consumers either by claiming Safe Harbor membership despite never having applied, or by allowing their Safe Harbor certifications to lapse. A related FTC Business … Continue Reading

FTC to Host Workshop on Online Lead Generation

The FTC has increasingly focused its attention on the online lead generation industry by bringing enforcement actions against payday loan lead generators (lead generators alleged to have engaged in advertising that lacked disclosures required by the Truth in Lending Act), mortgage lead generators (lead generators alleged to have deceptively advertised mortgage products by misrepresenting their … Continue Reading

FCC’s New TCPA Order May Require Companies to Obtain Updated Consents for Marketing Calls and Texts

Last week we published an overview of key issues raised by the Federal Communications Commission’s July 10, 2015, Declaratory Ruling and Order regarding the Telephone Consumer Protection Act (the “July 2015 Order”). The July 2015 Order responded to 21 requests for clarification concerning previous rules and orders the FCC has issued pursuant to the TCPA, … Continue Reading

“Don’t Call Us, We’ll Call You.” The FCC’s Latest TCPA Ruling Imposes Even More Restrictions on Telemarketing Calls and Texts

On July 10, 2015, the Federal Communications Commission released the Omnibus Declaratory Ruling and Order (the Order) it adopted on June 18. The Order addresses requests for clarification regarding requirements under the Telephone Consumer Protection Act (TCPA) and previous rules and orders issued by the Commission. The Order, which took effect immediately upon release, is … Continue Reading
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