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
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
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
In our inaugural Data Security Incident Response Report (the Report), we found that regulators inquired about a company’s breach 31% of the time and multi-state state Attorneys General investigations were launched less than 5% of the time. A post-breach investigation is not guaranteed. Certainly, in large, highly public incidents, companies can expect at least an … Continue Reading
Editor’s Note: We recently launched a graphic illustrating our Cyber Risk Mitigation Services. This week, our attorneys will be writing about specific examples of those services. The past few years have witnessed the unprecedented rise of Big Data. Fully 90 percent of today’s data was created over just the past two years. Businesses now double the … Continue Reading
Editor’s Note: We recently launched a graphic illustrating our Cyber Risk Mitigation Services. This week, our attorneys will be writing about specific examples of those services. Vendor contract review—what does that mean to you? Does it bring back bad memories? A last minute scramble to close a deal? Capitulating to oppressive limits on liability to meet … Continue Reading
Editor’s Note: We recently launched a graphic illustrating our Cyber Risk Mitigation Services. This week, our attorneys will be writing about specific examples of those services. Strange as it sounds, we hear from companies at the end of an investigation where it is determined that a breach did not occur that they are glad to … Continue Reading
Today, data can be transferred around the world instantaneously, making the global marketplace seem almost borderless. As any multinational company knows, however, compliance with each country’s data transfer and privacy laws can be onerous. As the U.S. contemplates data protection legislation, the FTC last week announced a joint initiative with agency officials from the European … Continue Reading
As reported here last summer, many types of IT equipment have the capacity to store data that may have to be purged before the equipment can be recycled, remarketed or otherwise disposed of. Failure to do so can result in a breach of confidential data, leading to serious regulatory and legal issues. Click here for a … Continue Reading
Last week the European Commission's panel on privacy, commonly known as the Article 29 Working Party, provided long-awaited clarity (in the form of an "Opinion") on whether and how European governments and private enterprise can utilize cloud computing technology in their operations, including processing personal information and other protected data.
Cloud computing is a broad term that varies in context and has been subject to hype, but generally refers to technologies and service models allowing the sharing of on-demand scalable computer resources over the internet, including software programs, computer storage space and elastic computing power. Implementing IaaS systems has allowed companies and governments to significantly reduce capital expenditures by eliminating the need for purchase and maintenance of computer infrastructure equipment. Cloud services also allow for rapid remote deployment of software and network solutions. Additionally, cloud services enable organizations to decrease reliance on developing sophisticated in-house staff since major cloud providers have trained experts monitoring the computing environment.
But, because cloud computing leverages the internet and computing resources in geographically disparate locations, the technologies present serious privacy and data security risks. In addressing this fundamental concern the Opinion indicates that the principal risks are a potential lack of control over data and limited transparency into its processing. A cloud provider's infrastructure can seem opaque and lacking information ensuring the "availability, integrity, confidentiality, transparency, isolation, intervenability and portability of the data". Additionally, due to the collaborative nature of cloud computing, customers may not be aware of subcontractors in the supply chain handling their data. With due respect to the data security risk, many observers consider this to be the great triumph of cloud compuing - that is that is simply "works" without its users having to worry about the back-end.… Continue Reading