Oregon has recently passed a new cybersecurity statute, joining California in requiring manufacturers of “connected devices” to equip qualifying technology with “reasonable security features.” The new law will go into force on January 1, 2020. For further analysis, visit our recent client alert.

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.
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Following a draft Interagency Report published in February, the National Institute of Standards and Technology (“NIST”) has published NISTIR 8200: Interagency Report on the Status of International Cybersecurity Standardization for the Internet of Things (IoT), which seeks to assess the “current state of international cybersecurity standards development for IoT.” In this effort, the Report defines the major areas where IoT is currently being used and evaluates various IoT cybersecurity standards commonly applied in those areas. To evaluate the surveyed IoT standards, the Report relies on a framework that breaks the standards down into twelve core areas, each of which designates a distinct, common element of cybersecurity measures.

Where IoT is Being Used the Most

To help evaluate the current understanding of cybersecurity risks involved in IoT applications and the methods used to measure them, the Report overviews major IoT technologies and how they are deployed. It then breaks down the network-connected devices, systems, and services comprising IoT into five major categories of application, explaining the common components of each:


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Responding to the rise of interconnected technology, the National Institute for Standards and Technology (NIST) has recently issued an introductory document in a planned series of cybersecurity publications addressing Internet of Things (IoT) privacy risks.  Open for comment through October 24, 2018, the Draft NISTIR 8228, Considerations for Managing Internet of Things (IoT) Cybersecurity and

On June 19, 2017, the Federal Trade Commission (FTC) issued a public comment regarding the National Telecommunications & Information Administration’s (NTIA) draft guidance titled Communicating IoT Device Security Update Capability to Improve Transparency for Customers.  In commenting on the guidance, the FTC acknowledged the benefits of and challenges to IoT device security, and encouraged

On June 12, Nevada Gov. Brian Sandoval (R) signed into law a bill requiring the operator of an Internet website to disclose the type of information it collects on Nevada residents.  Under the law, any company or person who (1) owns or operates an Internet website or online service for commercial purposes, (2) collects information

Last week, the Federal Trade Commission (“FTC”) announced an agreement settling claims against a television manufacturer arising from the alleged unauthorized collection of television viewing data.  The FTC, along with the State of New Jersey, alleged that certain “smart TVs” manufactured and sold by VIZIO, Inc. and its subsidiary VIZIO Inscape Services (collectively, “VIZIO”) failed

Discussion headlines:  New guidelines for IoT; Russia blocks access to LinkedIn; Standing under the TCPA; Long distance search warrant power

The DHS and NIST Release Guidelines for the IoT

This week, both the Department of Homeland Security and the National Institute of Standards and Technology released a set of guidelines intended to secure the IoT. 

Brexit effect on EU and UK Privacy rules; EU and U.S. to strengthen ‘Privacy Shield’; Ponemon Study on Healthcare Data Security; Mobile ad provider fined for deceptive conduct FTC comments on the Internet of Things

Brexit – what does it mean for EU and UK Privacy rules?

On June 23, 2016, the population of Great Britain in a historical referendum voted to leave the European Union with a majority of 52% vs 48%.  Although this decision does not have immediate impact on the membership of the United Kingdom in the EU (the UK is still a Member of the European Union and will remain so until at least 2018, see also FAQ on the further procedure by the European Commission), waves of discussion are rising high, among others about the future of UK Privacy laws and the implementation of the General Data Protection Regulation (GDPR).

In a statement of June 24, 2016, the UK’s Data Protection Authority (ICO) has stressed that “the Data Protection Act remains the law of the land irrespective of the referendum.” This means that on the short term, in principle nothing will change. This also applies with regard to the ongoing EU reform, as a result of which the GDPR will enter into force on May 25, 2018, and thus in any event before the earliest possible day for a definite exit of the UK out of the European Union.  It will therefore – at least for a short period of time – also apply to UK businesses.

What will certainly have an impact, however, is the moment in which the UK factually leaves the European Union. Although the ICO has stressed that it aims to stay as close to European Privacy laws as possible also post-Brexit, this situation would have an immediate impact on businesses sending data to the UK.  As soon as the UK would be no longer part of the European Union, due to the absence of an ‘Adequacy Decision’ of the European Commission relating to the UK, companies would have to put in place other transfer mechanisms such as Standard Contractual Clauses or Binding Corporate Rules, in order to lawfully continue to transfer personal data from European countries to the UK as soon as the exit is completed. This could only be avoided if the UK would guarantee an adequate level of Data Protection standards, which would have to be acknowledged by the European Commission.

The ICO has made its position clear: “Having clear laws with safeguards in place is more important than ever given the growing digital economy, and we will be speaking to government to present our view that reform of the UK law remains necessary.”


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The Panama Papers Leak – An overview on histories’ biggest data leak; Article 29 Working Party about to release opinion on EU-U.S. Privacy Shield; EU: GDPR and PCJ DPD about to be approved next week – final consolidated text published by Council; US: New HIPAA Audit Protocol Released as a Guidance Tool for phase two of Compliance Audits; U.S. Sneak News: Defend Trade Secrets Act, NPRM and Sony Settlement Approval. EU: GDPR, PCJ DPD and PNR Directive adoped by Parliament; U.S.: House Judiciary Committee approves E-Mail Privacy Act; Senate to require airlines to report cyberattacks; FTC issues online tool identifying applicable law for health apps; Global: Turkey releases first comprehensive Data Protection law; Connected cars found vulnerable for cyberattacks; Data Breaches May Waive Attorney-Client Privilege?; Encryption Continues to Dominate Privacy Headlines; Hospital Settles with HHS for $ 2.2 Million in HIPAA Action; Southern District of New York Adds Ransomware Conspirator to Hacking Case; European and Canadian Data Protection Authorities Investigate IoT Devices; Norway Requires Data Breach Notification for Individuals

The Panama Papers Leak – An overview on histories’ biggest data leak

On April 3, 2016, reports revealed that a set of 11.5 million confidential documents (“the Panama Papers”), providing detailed information about more than 200,000 offshore companies connected to Panamanian legal service provider Mossack Fonseca, had been made available to German Daily Newspaper Süddeutsche Zeitung by an anonymous source in 2015.

The documents, which form part of the biggest data leak in history, reveal aspects on (potential) exploitations of offshore tax regimes and other illegal purposes, such as fraud or drug trafficking. Among the people concerned are not only big companies, but also twelve national leaders among 143 politicians, celebrities, government officials or other law firms. The Süddeutsche Zeitung, given the scope of the leak, involved the International Consortium of Investigative Journalists (ICIJ) and about 400 other journalists in 76 different countries to investigate and analyze the documents. ICIJ has promised to publish a full list of companies involved in early May 2016.

Mossack Fonseca, the leaked firm, defended its commercial conduct, stating that itself would always comply with applicable laws and carry out thorough due diligence on its clients. However, the leak will have a huge impact on the offshore business, as the biggest selling point of this business, secrecy, has been massively cracked.


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