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The European Commission (the “EC”) has published (see link here) slides from its Task Force for Relations with the United Kingdom regarding the future relationship with the UK, in connection with personal data protection. The slides discuss a possible “adequacy” decision for the UK’s data protection regime, to be delivered by the EC by the end of the “transition period” which, under the draft Agreement on the Withdrawal of the UK from the EU (the “Withdrawal Agreement”), is currently envisaged to be December 31, 2020.

The slides were used for internal “preparatory discussions” and were presented on January 10, 2020 to the European Council’s Ad hoc Working Party on Article 50. The slides are not binding and are stated as being for “presentational and information purposes only”.…
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The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2020”.

According to a 2019 survey, Chief Legal Officers ranked data breaches as the most important issue keeping them “up at night.” Cybersecurity also remained top of mind for boards and other corporate…

The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2020”.

Increased regulation continues to be the trend in data privacy law, with 2019 bringing forth a host of new regulations and guidance on existing laws. This year, the pace will not likely…

Since the end of 2018, the Federal Trade Commission has reportedly been considering how to strengthen the injunctive relief imposed in orders in data security cases.  The FTC began its evaluation with a public hearing in December 2018 on data breaches and data breach assessments.  Several months later, in March 2019, the Commission issued a statement explaining that it was examining the obligations in its orders in data security cases and mandating “new requirements” while “anticipat[ing] further refinements.”  Thereafter, the FTC ultimately issued seven data security orders with specific data security practices and obligations that differed markedly from past orders.…
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On January 7, 2020, the U.S. Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) released its 2020 Examination Priorities (“2020 Priorities”).  While at first blush the themes appear consistent with and predictable from their 2019 priorities, on closer read OCIE has provided some new insights and some unexpected focus areas.  The themes for the 2020 Priorities are:  retail investors, information security, financial technology (“Fintech”) and innovation (including digital assets and electronic investment advice), several areas covering registered investment advisers and investment companies, anti-money laundering, market infrastructure (clearing agencies, national securities exchanges, alternative trading systems, transfer agents), and oversight of the Financial Industry Regulatory Authority and Municipal Securities Rulemaking Board programs and policies.  OCIE also stressed the challenges it faced in light of last year’s government shutdown and resource constraints, as the Division of Enforcement did in its 2019 Annual Report (see our analysis here), and the challenges in examining non-U.S. advisers due to limits that foreign data protection and privacy laws may place on cross-border information transfers.  In this post, we analyze the highlights in and our takeaways from the 2020 Priorities.…
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On Tuesday, November 12, 2019, the U.S. Federal Trade Commission (“FTC” or “Commission”) announced a proposed settlement with InfoTrax Systems, L.C. (“InfoTrax”), a third-party service provider, regarding multiple data security failures.  As a result of these security shortcomings, a hacker accessed about one million consumers’ sensitive personal information after more than twenty intrusions into InfoTrax’s network.  This settlement marks one of the first instances in which the FTC has alleged a violation of the FTC Act predicated solely upon the failure to maintain reasonable security measures by a third-party service provider.  The settlement is also notable for a Commissioner’s concurring statement criticizing the settlement’s standard twenty-year term.…
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Have the right policies in place

– Ensure clear, readily accessible, and (where necessary) country-specific policies are in place indicating the permitted uses of company devices and other IT equipment, including messaging services. If you allow employees to use their own devices to perform work, make sure your policies adequately address issues of access in the context of investigations.…
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Many investigations, particularly those that are cross-border in nature, are likely to present data privacy issues, and managing these issues is frequently a key consideration in an investigation.  By keeping data privacy laws in mind as soon as an investigation starts, an organization will avoid the risk that it has failed to satisfy certain requirements, thereby exposing itself to the possibility of a fine or sanction from a regulator.…
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The final version of the California Consumer Privacy Act of 2018 is coming into view.

On October 10, California’s Attorney General released the long-anticipated draft regulations to implement the CCPA, and on October 12, the Governor signed into law five amendments to the CCPA passed during the 2019 legislative session.  (We previously discussed the CCPA …

On October 3, 2019, the governments of the United Kingdom and United States signed the first-ever executive agreement governing cross-border data requests (the “Agreement”) pursuant to the US Clarifying Lawful Overseas Use of Data Act (“CLOUD Act”).[1]  As contemplated by the CLOUD Act, the Agreement provides a mechanism for the governments to access and share data stored abroad by electronic communications services providers (“CSP”) in their respective countries in a timely manner.  The Agreement will enter into effect following a 180 day Congressional review period required by the CLOUD Act and a similar review by the UK Parliament.   …
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