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(FTC) issued a public comment regarding the National Telecommunications & Information Administration’s (NTIA) draft guidance titled Communicating IoT Device Security Update Capability to Improve Transparency for Customers.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
‘Privacy Shield’ certifications possible since August 1, 2016; Hamburg DPA aims to challenge ‘Privacy Shield’; EU Court rules on applicability of EU privacy laws to online companies; Pokémon Go violating EU Privacy Laws?; Norwegian DPA criticizes ‘Facebook at Work’; Advocate Health to Pay Largest HIPAA Settlement Ever; FTC Overrules LabMD Dismissal; Banner Health Cyberattack Affects 3.7M; HHS Announces Grant for Healthcare Sector Information Sharing Organization
‘Privacy Shield’ certifications possible since August 1, 2016
On Monday, August 1, 2016, the U.S. Department of Commerce has opened up the registration process for multinationals so that they can self-certify their compliance with the newly adopted ‘EU-U.S. Privacy Shield’ (‘Privacy Shield’) for transfers of personal data from Europe to the U.S.
The ‘Privacy Shield’, which had been formally approved via the European Commission’s adequacy decision on July 12, 2016, is replacing the formerly invalidated ‘U.S.-EU Safe Harbor’ Framework that had been struck down before the European Court of Justice in October 2015. The national Data Protection Authorities (‘DPAs’), in their function as Article 29 Working Party (‘WP29’), had also okayed the new Framework, by stating that they would not seek to challenge it “at least until the next annual review”.
Companies, who decide to sign up with the new framework as from now, may therefore rely on it at least until next May. For more details, see also our Client Alert on Privacy Shield as well as our previous week’s blog post.
Article 31 Committee approves Privacy Shield; House Cuts FCC Funding Over Attempted Broadband Privacy Regulations; No Charges for Clinton in Data Security Probe; European Commission launches public-privacy partnership on cybersecurity; European Parliament adopts NIS Directive; Privacy Code of Conduct for mHealth app providers finalized; French parliament about to make French Privacy act more severe; Russia introduces new data retention obligations.
Article 31 Committee approves Privacy Shield
On July 8, 2016, the Article 31 Committee has finally given its support for the adoption of the “EU-U.S. Privacy Shield”, the new framework for cross-Atlantic data transfers.
For more details, please see our latest client alert here.
House Defunds FCC’s Data Privacy Efforts for Broadband Providers
On July 7, the House of Representatives voted to cut off funding for the FCC’s proposed privacy regulations of broadband service providers. The measure, attached as an amendment to the 2017 Financial Services and General Government Appropriations Bill, cut the FCC’s funding by more than 17%. Calling the FCC’s proposed rules “extreme,” Rep. Marsha Blackburn (R-TN), the amendment’s author, claimed the measure was necessary to reassert the Federal Trade Commission’s status as the go-to federal data privacy regulator. The FCC, Rep. Blackburn asserted, “simply doesn’t have the requisite technical expertise to regulate privacy.”
The proposed regulations, which the FCC announced in March 2016, would require ISPs to disclose how data regarding customers’ online activities could be collected and recorded. These proposed rules represented the FCC’s first major attempt to regulate broadband providers in the aftermath of the agency’s February 2015 decision to treat broadband as a public utility. Several broadband providers had expressed public reservations about the FCC’s proposed rulemaking and actively lobbied legislators to act. The bill, which passed in a 239-185 vote, next heads to the Senate for consideration.
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.”
EU-U.S. Agreement on Law Enforcement Data; European Data Protection Supervisor Criticizes Privacy Shield; House Members Criticize FCC Privacy Proposal; NHTSA Targets Automotive Cybersecurity; Yahoo Releases National Security Letters; CareFirst Data Breach Lawsuit Dismissed; FDA Guidance on Data Protection in Investigations
EU and U.S. sign Umbrella Agreement on Law Enforcement Data
On June 2, 2016, Vera Jourová, European Commissioner for Justice and Consumer Protection, Dutch minister Ard van der Steur and U.S. Attorney General Loretta E. Lynch signed the “Umbrella Agreement”, a deal between the U.S. and the EU “on the protection of personal information relating to the prevention, investigation, detection and prosecution of criminal offenses”. The agreement aims at enhancing the cooperation of the EU and the U.S. in criminal enforcement (including terrorism), while at the same time protecting personal data of European citizens, when transferred from the EU to the U.S. for criminal investigations.
The text of the agreement, which was negotiated over a long period due in part to a Court of Justice of the EU (ECJ) finding that European citizens lacked adequate rights of redress, includes provisions on purpose limitation, information security, data retention, rights of data subjects, breach notifications and onward transfers. A “fact sheet”-FAQ is available on the Commission’s website. Before the agreement can be finally concluded, the European Parliament will still need to give its consent.
European Data Protection Supervisor criticizes “EU-U.S. Privacy Shield”
On May 30, the European Data Protection Supervisor (EDPS), Giovanni Buttarelli, issued an opinion on the draft “EU-U.S. Privacy Shield (“Privacy Shield”), which is in line with the criticism previously raised by the Article 29 Working Party and the European Parliament.
Last week, members of the Senate HELP Committee issued a draft of upcoming bipartisan legislation on health information technology (health IT), including changes to the HITECH Act. The legislation calls for a framework for governance of health information exchange and supplements patient access requirements under HITECH. Other focus areas include information blocking, interoperability, and transparency …