In this edition of our regular roundup on legislative initiatives related to artificial intelligence (AI), cybersecurity, the Internet of Things (IoT), and connected and autonomous vehicles (CAVs), we focus on key developments in the European Union (EU).

Continue Reading AI, IoT, and CAV Legislative Update: EU Spotlight (Third Quarter 2020)

In a new post on the Covington Energy & Environment Blog, our colleagues discuss the Federal Energy Regulatory Commission’s Notice of Inquiry on updating reliability standards related to cybersecurity, especially given the threat of a coordinated cyberattack targeting geographically distributed generation resources.  The Commission also issued a staff paper that suggests a framework for providing

On May 11, 2020, the State Cryptography Administration (“SCA”) and the State Administration for Market Regulation jointly issued the Commercial Encryption Product Certification Catalogue (First Batch) (“Product Catalogue”) and the Commercial Encryption Product Certification Measures (“Certification Measures”) (the announcement is available here), taking effect immediately.

Prior to the adoption of the Encryption Law (see our post on the Encryption Law here), manufacturers of commercial encryption products were required to apply to the SCA for the “Commercial Encryption Products Type and Model Certificate.”  The Encryption Law removed this approval requirement by establishing a voluntary certification scheme, which encourages manufacturers to voluntarily apply to qualified agencies for the testing and certification of their commercial encryption products.  The release of the Product Catalogue and the Certification Measures marks a critical step forward in implementing such a voluntary certification scheme under the Encryption Law.
Continue Reading China Issued the Commercial Encryption Product Certification Catalogue and Certification

On April 27, 2020, the Cyberspace Administration of China (“CAC”) and other eleven government agencies jointly released the final version of the Measures on Cybersecurity Review (“Measures”) (an official Chinese version of the Measures is available here).  These Measures will take effect on June 1, 2020.

Under Article 35 of China’s Cybersecurity Law (“CSL”), operators of Critical Information Infrastructure (“CII”) are required to undergo a security review if the procurement of “network products and services” implicates China’s national security.  To implement this requirement, CAC previously released the Measures on the Security Review of Network Products and Services (Trial) (“Trial Measures”) on May 2, 2017, which established a process for CAC to conduct a cybersecurity review in a range of key sectors.  On May 24, 2019, CAC released a draft version of the Measures (“Draft Measures”) for public comment (see our post on the Draft Measures here), aiming to update the review process established under the Trial Measures.  The final version of the Measures replaces the Trial Measures and largely tracks the framework proposed in the Draft Measures.

Highlights of the final version of the Measures appear below.
Continue Reading China Issues New Measures on Cybersecurity Review of Network Products and Services

On April 6, 2020, Tapplock, Inc., a Canadian maker of internet-connected smart locks, entered into a settlement with the Federal Trade Commission (“FTC”) to resolve allegations that the company deceived consumers by falsely claiming that it had implemented reasonable steps to secure user data and that its locks were “unbreakable.”  The FTC alleged that these representations amounted to deceptive conduct under Section 5 of the FTC Act.  In its press release accompanying the settlement, the FTC provided guidance for IoT companies regarding the design and implementation of privacy and security measures for “smart” devices, as discussed further below in this post.
Continue Reading IoT Update: FTC Settles with Smart Lock Manufacturer and Provides Guidance for IoT Companies

On 1 April 2020, the UK Supreme Court handed down its ruling in WM Morrison Supermarkets plc v Various Claimants [2020] UKSC 12.  The Court ruled that Morrisons was not vicariously liable for a data breach deliberately perpetrated by an employee.  The judgment is significant in that it overturned the decisions of the two lower courts (the High Court and Court of Appeal) and provides guidance for employers on when they may be held vicariously liable for data breaches and other violations of the GDPR involving employees, who act as independent controllers in their own right.

Continue Reading UK Supreme Court Rules That Supermarket Is Not Vicariously Liable For Data Breach Committed By Employee

In response to the COVID-19 outbreak, several U.S. government entities have released warnings about a rise in scams and fraudulent activity connected to the outbreak.  In a recent bulletin, the FBI warned of a rise in phishing emails, counterfeit treatments or equipment for COVID-19 preparedness, and fake emails from the Centers for Disease Control and Prevention (CDC) purporting to provide information about the outbreak.  The FTC, meanwhile, has released not only a general overview of the steps that it is taking to combat scams related to COVID-19, but has also provided a specific list of seven types of COVID-19 scams that it has observed targeting businesses.  More information about these scams, and guidance from the FBI and FTC on how to protect against and respond to some of the most common risks, is below.
Continue Reading COVID-19 Cybersecurity Advice: FTC and FBI Provide Guidance on Cybersecurity Scam Trends and Preventive Measures

On March 21, 2020, the data security requirements of the New York SHIELD Act became effective.  The Act, which amends New York’s General Business Law, represents an expansion of New York’s existing cybersecurity and data breach notification laws.  Its two main impacts on businesses are:

  1. expanding data breach notification requirements under New York law; and

Covington experts on issues as varied as supply chain and other commercial contracts, employment, and insurance are supporting companies on the commercial implications of Coronavirus COVID-19.  But this blog post provides a brief overview of some of the key issues that privacy and cybersecurity professionals should have top of mind in dealing with response efforts.  We describe below both privacy implications of disclosing data to government authorities and commercial partners and strategies to manage COVID-19 risk by collecting additional information about employees and visitors, as well as the cybersecurity implications of these outbreak prevention and management efforts.

  • Our professionals around the globe have been advising clients on the privacy risks of disclosing health and other personal data to public health authorities and other government agencies.  As we blogged about here, regulators at many different levels of the Chinese government have been actively collecting personal data to monitor and mitigate the spread of the virus, and that’s now happening across the globe.  Other public health agencies worldwide are requesting information from private companies to assist with containing or mitigating the spread of the virus.  For example, they may seek information about a person’s contacts in order to conduct contract tracing of an infected person.  Although public health agencies generally have broad information-gathering authorities, these laws typically do not overcome privacy laws that restrict disclosures of personal or other sensitive information.  Companies may need to consider how to mitigate these legal risks before responding, particularly where more detailed information is requested.
    Continue Reading Key COVID-19 Issues for Privacy and Cybersecurity Professionals

On 19 February 2020, the European Commission presented its long-awaited strategies for data and AI.  These follow Commission President Ursula von der Leyen’s commitment upon taking office to put forward legislative proposals for a “coordinated European approach to the human and ethical implications of AI” within the new Commission’s first 100 days.  Although the papers published this week do not set out a comprehensive EU legal framework for AI, they do give a clear indication of the Commission’s key priorities and anticipated next steps.

The Commission strategies are set out in four separate papers—two on AI, and one each on Europe’s digital future and the data economy.  Read together, it is clear that the Commission seeks to position the EU as a digital leader, both in terms of trustworthy AI and the wider data economy.

Continue Reading European Commission Presents Strategies for Data and AI (Part 1 of 4)