Earlier this month, two courts, one in California and one in Massachusetts under two different scenarios, opined on the enforceability of browsewrap and hybridwrap agreements, providing important warnings for companies relying on such agreements to obtain legally required consent for activities such as telemarketing or to otherwise impose terms and conditions on website users. Many
Ninth Circuit Rejects Facebook’s Article III Argument; Biometric Lawsuit Will Proceed
On August 8, 2019, the U.S. Court of Appeals for the Ninth Circuit issued yet another decision adopting relaxed standing requirements in privacy litigation, this time in a decision permitting a plaintiff to pursue claims under Illinois’s Biometric Information Privacy Act (BIPA). In Patel v. Facebook, the Ninth Circuit rejected arguments from Facebook Inc. (Facebook) that claims under the BIPA require assertions of real-world harm, and that BIPA claims only apply to conduct within Illinois. The ruling creates a circuit split on the standard for establishing Article III standing in BIPA litigation, which could prompt the U.S. Supreme Court to take up the issue.
Political Data Firm Improperly Accessed Facebook Users’ Data
Facebook faces government investigations on both sides of the Atlantic after recent revelations that Cambridge Analytica, a British political data firm with ties to President Trump’s 2016 campaign, collected and used the personal information of more than 50 million Facebook users in a manner that violates Facebook’s stated policy regarding access, disclosure, and use of personal information. Legislators in the U.S. and the UK have called for hearings.
The Federal Trade Commission (“FTC”) has confirmed it is conducting an investigation into whether Facebook violated the terms of its November 2011 consent decree requiring it to, among other things, “not misrepresent . . . the extent to which it maintains the privacy or security of [personal] information,” and “establish and implement, and thereafter maintain, a comprehensive privacy program that is reasonably designed to (1) address privacy risks related to the development and management of new and existing products and services for consumers, and (2) protect the privacy and confidentiality of [personal] information.” Several state attorneys general have also announced investigations, and Facebook faces at least one a shareholder lawsuit alleging that Facebook did not properly disclose the third-party access to users’ personal information.
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Ninth Circuit Revives Data Breach Class Action, Finds Risk of Identity Theft Without Actual Harm Sufficient to Establish Standing
Last week, the U.S. Court of Appeals for the Ninth Circuit revived a class action lawsuit related to a 2012 data breach, determining that the future risk of identity theft suffices to establish Article III standing, even where there has been no actual harm. At issue in the case, In re Zappos.com, was whether
PayPal Settles FTC Claims Regarding Venmo’s Disclosure, Privacy, and Security Practices
On February 27, 2018, the Federal Trade Commission (“FTC”) announced a proposed administrative settlement with PayPal, Inc. over allegations that the company failed to make adequate disclosures to users regarding its Venmo peer-to-peer payment service. The settlement underscores the importance of effectively disclosing material information to consumers, including accurately communicating privacy and security practices and user control over optional settings.
Specifically, the FTC alleged that VenmoContinue Reading PayPal Settles FTC Claims Regarding Venmo’s Disclosure, Privacy, and Security Practices
New Texas Law Explicitly Allows Driverless Cars
On June 15, Texas Gov. Greg Abbott signed a bill that explicitly allows self-driving cars on the state’s roads and highways, regardless of whether a human is physically present. While there was no ban on driverless cars, Texas law did not explicitly permit them either. This created a grey area of the law that fueled
Judge Approves Neiman Marcus Data Breach Settlement
Last week, an Illinois judge preliminarily approved a $1.6 million settlement between Neiman Marcus and a class of customers affected by a 2013 data breach. The settlement, which the parties agreed to in March, covers U.S. residents whose credit card or debit card was used between July 16, 2013 and January 10, 2014 at any
Data Breach Class Action Dismissed for Not Establishing Economic Injury
Earlier this week, a federal Illinois court dismissed a class action against book retailer Barnes & Noble that alleged breach of contract, invasion of privacy, and violations of state consumer fraud and breach reporting laws. The case, dismissed for failing to establish economic harm, marks another data point in demarcating actionable data breaches and highlights
Supreme Court to Hear Major Cellphone Privacy Case
Yesterday, the Supreme Court announced that it will hear a case with significant ramifications for privacy in the digital age. The case involves a man convicted of armed robbery based in part on cellphone location data obtained without a probable cause warrant. The conviction was appealed at the Sixth Circuit Court of Appeals, which held
The PRC Cybersecurity Law Takes Effect
The first comprehensive data protection framework in China’s history, the PRC Cybersecurity Law, takes effect today, June 1, 2017, despite concerns from businesses around the world about the law’s stringency and scope. The law will carry with it the authority to impose fines up to approximately $145,000.00 per violation in addition to various administrative and