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Corporations face unprecedented challenges in safeguarding sensitive data and mitigating privacy risks in an era marked by the rapid proliferation of Internet of Things, or IoT, devices.

Recent developments, including federal and state regulators’ heightened focus on privacy enforcement, highlight the importance of proactive risk management, compliance and data governance. As IoT and smart devices continue to hit the marketplace, heightened scrutiny for businesses’ data governance practices follows.

The Federal Trade Commission’s recent technology blog, “Cars & Consumer Data: On Unlawful Collection & Use”[1] underscores the agency’s commitment to enforcing consumer protection laws. Despite their blog’s focus on the car industry, the FTC’s message extends to all businesses, emphasizing its vigilance against illegal — or “unfair and deceptive” — collection, use and disclosure of personal data.

Recent enforcement actions are a stark reminder of the FTC’s proactive stance in safeguarding consumer privacy.

Geolocation data is a prime example of sensitive information subject to enhanced protections under the Federal Trade Commission Act. Much like mobile phones, cars can reveal consumers’ persistent, precise locations, making them susceptible to privacy infringements.Continue Reading Careful Data Governance Is a Must Amid Enforcement Focus

The European Union (EU)’s government organizations are just like any another entity trying to function in a world where global companies and even government entities are reliant on digital platforms for messaging and collaboration. For years, there has been debate about how platforms like Microsoft 365, formerly Office 365, could be deployed in a way…

On Wednesday, March 20, Seyfarth attorneys Rebecca Woods, Owen Wolfe, Lauren Leipold, and Puya Partow-Navid will present and Ken Wilton will moderate, the first session of the 2024 Commercial Litigation Outlook webinar series: Charting the Course: AI’s Influence on Legal Practice and IP Protection.

Time of the event:
1:00 p.m.

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Seyfarth Synopsis: Federal judges are requiring attorneys to attest as to whether they have used generative artificial intelligence (AI) in court filings, and if so, how and in what manner it was used. These court orders come just days after two New York attorneys filed a motion in which ChatGPT provided citations to non-existent caselaw…

At the end of May, 2022, the California Privacy Protection Agency (“Agency”) released a preliminary draft of proposed regulations for the California Privacy Rights Act (“CPRA”). The 66-page draft proposal only covers a few topics the Agency is seeking to cover. The issues covered in this draft of the regulations include data collection and processing…

Introduction

On March 9, 2022, the U.S. Securities and Exchange Commission (“SEC”) proposed mandates for cybersecurity disclosures by public companies. If adopted, these mandates seek to provide investors a deeper look into public companies’ cybersecurity risk, governance, and incident reporting practices. SEC chair Gary Gensler noted in a statement regarding the proposed mandates that cybersecurity incidents continue to become a growing risk with “significant financial, operational, legal, and reputational impacts.”

“The interconnectedness of our networks, the use of predictive data analytics, and the insatiable desire for data are only accelerating, putting our financial accounts, investments, and private information at risk. Investors want to know more about how issuers are managing those growing risks.” – Gary Gensler, SEC ChairpersonContinue Reading SEC Proposes Mandatory Cybersecurity Disclosures by Public Companies

Introduction

On March 15, 2022, President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act of 2022. The Act will require critical infrastructure organizations (defined below) to report cyber attacks to the Cybersecurity and Infrastructure Security Agency (CISA) within 72 hours. The Act also creates an obligation to report ransomware payments within 24 hours.

According to the Federal Bureau of Investigation’s 2021 Internet Crime Report, released on March 23, 2022, cyber incidents rose 7% from 2020, with potential losses topping $6.9 billion. Many of the most threatened organizations fall into the critical infrastructure sector, and in 2021 alone, cyber incidents caused oil and food shortages, as well as supply chain threats. With cyber incidents reaching all-time highs in 2021, the legislation purports to protect U.S. critical infrastructure entities and investigate cyber crimes moving forward. The Act suggests that reporting obligations are being implemented to ensure that the government can support in the response, mitigation, and protection of both private and public companies that are covered under the Act. Within 24 months, CISA’s director is required to issue a proposed rule, and must issue a final rule 18 months after making the proposal. The legislation also authorizes the Director of CISA to issue future regulations to amend or revise that rule.
Continue Reading President Biden Signs Bill Mandating Cyber Reporting for Critical Infrastructure Entities

Introduction 

The Utah legislature has passed Senate Bill 227, otherwise known as the Utah Consumer Privacy Act (UCPA). Barring a veto from Utah Governor Spencer J. Cox, who, as of March 15, 2022, officially has the bill on his desk for action, Utah will become the fourth state to pass a comprehensive privacy bill, following the likes of California, Virginia, and Colorado. If enacted, the UCPA would take effect on December 31, 2023.
Continue Reading Utah To Become The Fourth State to Pass Privacy Legislation

Introduction

While previous cybersecurity legislation has largely been unable to pass through Congress, the Strengthening American Cybersecurity Act of 2022 was introduced by U.S. Senators Rob Portman (R-OH) and Gary Peters (D-MI), and has been viewed as a priority as threats of cyber incidents continue to rise. The Senate unanimously passed the Act, which, in its current form, would require federal agencies and critical infrastructure operators to report cyberattacks within 72 hours to the Cybersecurity and Infrastructure Security Agency (CISA). Should the legislative package make it through the House unchanged, it would also require critical infrastructure companies to report ransomware payments within 24 hours. The Act combines language from the three bills Senators Portman and Peters have authored in the past – the Cyber Incident Reporting Act, the Federal Information Security Modernization Act of 2021, and the Federal Secure Cloud Improvement and Jobs Act.
Continue Reading U.S. Senate Unanimously Passes Cybersecurity Bill on March 2, 2022