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As the country’s new Congress settles into its term, several technology issues are coming to the forefront. A number of Senators recently questioned the Department of Justice over how it is collecting cellphone-location data in the wake of the Supreme Court’s landmark Carpenter decision. Carpenter v. United States, 138 S. Ct. 2206 (2018). The House of Representatives is considering a renewed version of legislation that would strengthen the security of “Internet of Things” technologies used by the federal government. And politicians and pundits throughout Capitol Hill are asking whether this will be the year that comprehensive federal privacy legislation becomes law. As it turns out though, some of the nation’s top courts are already tackling these tough issues. In fact, the Seventh Circuit’s opinion last year in Naperville Smart Meter Awareness v. City of Naperville, 900 F.3d 521 (7th Cir. 2018), has received relatively little reporting, but its impact will be broad when it comes to how courts interpret the Fourth Amendment in the era of big data.

In Naperville, the Seventh Circuit heard an appeal concerning the city’s “smart meter” program. Without residents’ permission, Naperville had been replacing traditional energy meters on its grid with “smart meters” for homes. Each smart meter collected thousands of readings a month, as opposed to just the previous single monthly readings. According to the plaintiffs, the repeated readings of the smart meters collected data at such a granular level that they revealed what appliances were present in homes and when they were used. Considering the potential privacy impact, the Seventh Circuit found that Naperville’s collection of smart meter data from residents’ homes constituted a “search” under the Fourth Amendment.
Continue Reading Seventh Circuit Wades into Big Data Case Law

Concluding its investigation into the internal accounting controls of nine public issuers who were recent cyber fraud victims, the Securities and Exchange Commission (“SEC”), Division of Enforcement explicitly reminded issuers to consider cyber-related threats in developing and deploying their Section 13(b)(2)(B) internal accounting controls.

The SEC emphasized the importance of tailoring internal accounting controls to cyber-related threats, noting that cyber frauds like those carried out in the nine cases it investigated have caused “over $5 billion in losses since 2013, with an additional $675 million in adjusted losses in 2017.”
Continue Reading SEC Encourages Internal Accounting Controls to Guard Against Cyber Fraud

On February 21, 2018, the U.S. Securities and Exchange Commission (“SEC”) voted unanimously to disseminate its Statement and Guidance on Public Company Cybersecurity Disclosures, an “interpretive guidance” designed to help publicly-traded companies satisfy their cybersecurity risk disclosure obligations. The new guidance supplements the SEC’s initial October 13, 2011 Cybersecurity Disclosure Guidance, which was relatively broad, by: 1) articulating the SEC’s expectations regarding the adequacy of disclosures; and, for the first time, 2) recommending the implementation of policies and procedures that address disclosure controls as well as insider trading. 
Continue Reading U.S. Securities and Exchange Commission Ups the Ante for Addressing Corporate Cyber Risks

Security ratings firm BitSight recently released a report citing a gap in cybersecurity performance between the U.S. Government and contractors. 

The report was the result of a comparative security assessment between 1,212 randomly selected government contractors and 122 federal agencies. The assessment found that federal agencies were at least 15 points better than the mean

U.S.-based technology companies and courts across the country have disagreed over the extraterritorial application of the Stored Communications Act in allowing U.S. law enforcement to enforce warrants to reach data stored overseas.  Some courts have treated the data stored overseas as a “physical” object  and, therefore, refused to extend the reach of the Act abroad. 

On July 21, 2017, Governor Chris Christie signed the Personal Information Privacy and Protection Act (S-1913) (the “Act”) into law, further enhancing the protections afforded to consumers who make retail credit card purchases in New Jersey.  As technology has evolved, many retailers rely on electronic barcode scanners to review and capture information on

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