On November 16, 2022, the Digital Services Act (DSA) took effect across the European Union (EU). The DSA establishes new regulations applicable to “online intermediaries,” such as online marketplaces, social network platforms, and internet service providers. The DSA was implemented to encourage market growth and establish clear and transparent accountability for digital spaces. Although the DSA has been in effect for nearly eight months, the European Parliament (“Parliament”) has allowed for a transitional period before full application. This transitional period ends on February 17, 2024. Beginning on this date, organizations must have the requisite procedures in place to address DSA requirements.Continue Reading Full Steam Ahead: EU’s Digital Services Act Creates Global Impact
Zachary Heck
Zach’s practice focuses on privacy and data security. Specifically, Zach assists clients in the areas of privacy compliance, defense litigation, class action defense and guidance in the aftermath of an information security event, including data breach. Zach has experience advising clients with respect to FTC investigations, federal privacy regulations such as HIPAA, FCRA, TCPA, and GLBA, as well as state laws governing personally identifiable information. For his clients, he also provides regulatory analysis, risk management, policy development, training and audits.
SEC Approves Transformative Cybersecurity Disclosure Requirements
Last week, the US Securities and Exchange Commission (SEC) voted 3-2 on a series of rules relating to cybersecurity disclosures, including a new requirement for public companies to publicly disclose “significant impacts” of cyber-attacks within four days. Public companies would be well-served to review the new requirements immediately to form a plan of action to address the newly approved rules.Continue Reading SEC Approves Transformative Cybersecurity Disclosure Requirements
Not So Fast: California Superior Court Delays Enforcement of Certain CPRA Regulations
On June 30, 2023, California Superior Court Judge James P. Arguelles held that the California Privacy Protection Agency (the “Agency”) cannot enforce any violation for the Agency’s regulations issued on March 29, 2023, under the California Consumer Privacy Act (CCPA), as amended by the California Consumer Privacy Rights Act (CPRA) until March 29, 2024. This holding stems from a petition brought by the California Chamber of Commerce (the “Chamber”) against the Agency, arguing that based on a plain reading of the CPRA’s language, enforcement cannot begin until one year following issuance of the Agency’s regulations.
Although enforcement of the Agency’s regulations are delayed, the text of the CCPA, as well as regulations enacted prior to March 29, 2023, remain in effect and enforceable. The enforcement stay solely bars the Agency from enforcing its own issued regulations under the CPRA for one year after a particular regulation is finalized.Continue Reading Not So Fast: California Superior Court Delays Enforcement of Certain CPRA Regulations
Six down, 44 to go? Iowa Joins Privacy Party by Passing New Privacy Law
As expected, another state has joined the privacy party. This month, Iowa positioned itself to become the sixth state in the nation to pass legislation establishing consumer data privacy protections. Iowa Senate File 262 (the “SF 262”) unanimously passed in the Iowa House and Senate and is now awaiting signature by Iowa Governor Kim Reynolds. When signed into law, SF 262 will become effective on January 1, 2025. The new SF 262 mirrors many of the protections and rights provided in the data privacy laws of the five other states (California, Colorado, Connecticut, Utah, and Virginia). Below are the key highlights that businesses should know about the bill.Continue Reading Six down, 44 to go? Iowa Joins Privacy Party by Passing New Privacy Law
CMMC – Where Do We Stand in 2023?
For companies doing business with the Department of Defense (DoD), the Cybersecurity Maturity Model Certification (CMMC) has been a source of confusion for nearly five years. Originally, November 30, 2020, was the deadline for DoD to implement a standard methodology for assessing DoD contractor compliance with security requirements in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171. Concurrently, the DoD would roll out CMMC as a certification process designed to measure a company’s maturity and institutionalization of cybersecurity practices and processes. This certification, in turn, would be required for performance of DoD contracts.Continue Reading CMMC – Where Do We Stand in 2023?
Windows Pain? German Report Casts Doubt on Microsoft GDPR Compliance
Two weeks ago, the German Conference of the Independent Data Protection Authorities of Germany (Datenschutzkonferenz or “DSK”) released a report looking into Microsoft 365’s (Microsoft) compliance under the European Union’s General Data Protection Regulation (GDPR). DSK’s overarching conclusion of the report was that use of Microsoft 365 applications by businesses processing personal data runs afoul of GDPR requirements.
The DSK report alleged Microsoft’s policies and disclosures lack clarity with respect to how personal data is processed and which entity is processing that data. DSK was unable to conclusively determine the cases where Microsoft acts as a data controller rather than a data processor. The distinction between a data controller and a data processor is important because Article 5(2) of the GDPR imposes additional accountability requirements and responsibilities for data controllers. The DSK also expressed concerns regarding Microsoft’s lack of overall clarity and notification to users about subcontractors and sub-processors. The group determined that Microsoft’s lack of detail regarding subcontractors and sub-processors falls below the European Commission’s template on Standard Contractual Clauses.
Continue Reading Windows Pain? German Report Casts Doubt on Microsoft GDPR Compliance
Colorado AG Publishes CPA Proposed Rules
The Colorado Attorney General (AG) recently published proposed rules for the Colorado Privacy Act (CPA). These draft rules shed light and clarify how the Attorney General plans to carry out the CPA when it goes into effect on July 1, 2023. These proposed CPA rules are a draft that is not yet finalized and therefore are subject to change. In the upcoming months, the Colorado AG will engage with key stakeholders and the public on feedback regarding these proposed rules. While the draft CPA draft rules are months away from finalization, the proposed rules are intended to help entities understand the AG’s requirements for when the CPA becomes effective. Below are a few key highlights of the draft CPA rules as they currently stand, which supplement the AG’s prior guidance from April 2022.
Continue Reading Colorado AG Publishes CPA Proposed Rules
Child’s Play: Latest California Bill Creates Significant Increase in Regulation for Covered Businesses Collecting Personal Data of Children
Last week, the California Legislature passed Assembly Bill 2273: the California Age-Appropriate Design Code Act (“CAADCA”). CAADCA is an online safety bill, which contains unique privacy requirements to protect minors under the age of 18.
Covered Businesses: Covered businesses under the bill include any “business,” as defined by the California Consumer Privacy Act, “that provides an online service, product, or feature likely to be accessed by children.” This means that if your company conducts business in California and (a) has an annual gross revenue of more than $25 million; or (b) alone or in combination, buys, receives for commercial purposes, sells, or shares for commercial purposes the personal information of more than 50,000 consumers, households, or devices; or (c) derives 50% or more of its annual revenue from selling consumers’ personal information, then you will need to evaluate whether your products or services must also address CAADCA requirements.
Continue Reading Child’s Play: Latest California Bill Creates Significant Increase in Regulation for Covered Businesses Collecting Personal Data of Children
Paying the Cost to be the Boss(ware): Considerations Surrounding Employee Monitoring Technologies
Employers have various interests in monitoring employees’ electronic activity on company systems. With an increasing number of businesses allowing remote work throughout and following the Covid-19 pandemic, some companies have sought to implement technical means to keep an eye on their employees’ online activity. For example, employers may want to monitor this activity as a means to manage productivity and performance. Enter: “Bossware.”
Continue Reading Paying the Cost to be the Boss(ware): Considerations Surrounding Employee Monitoring Technologies
Are You Ready for CPRA? 6 Tips for the Final 6 Months
We are officially six months away from the California Privacy Rights Act (“CPRA”) taking effect and amending the California Consumer Privacy Act (“CCPA”). Even for companies that have grown comfortable with requirements under the CCPA, the CPRA changes require planning and preparation. With CPRA taking effect on January 1, 2023, here are six tips to begin that preparation:
Continue Reading Are You Ready for CPRA? 6 Tips for the Final 6 Months