Data Security

On April 11, 2023, the Cyberspace Administration of China (“CAC”) released draft Administrative Measures for Generative Artificial Intelligence Services (《生成式人工智能服务管理办法（征求意见稿）》) (“draft Measures”) (official Chinese version available here) for public consultation.  The deadline for submitting comments is May 10, 2023.

The draft Measures would regulate generative Artificial Intelligence (“AI”) services that are “provided to the public in mainland China.”  These requirements cover a wide range of issues that are frequently debated in relation to the governance of generative AI globally, such as data protection, non-discrimination, bias and the quality of training data.  The draft Measures also highlight issues arising from the use of generative AI that are of particular concern to the Chinese government, such as content moderation, the completion of a security assessment for new technologies, and algorithmic transparency.  The draft Measures thus reflect the Chinese government’s objective to craft its own governance model for new technologies such as generative AI.

Further, and notwithstanding the requirements introduced by the draft Measures (as described in greater detail below), the text states that the government encourages the (indigenous) development of (and international cooperation in relation to) generative AI technology, and encourages companies to adopt “secure and trustworthy software, tools, computing and data resources” to that end. 

Notably, the draft Measures do not make a distinction between generative AI services offered to individual consumers or enterprise customers, although certain requirements appear to be more directed to consumer-facing services than enterprise services.

This blog post identifies a few highlights of the draft Measures.Continue Reading China Proposes Draft Measures to Regulate Generative AI

On March 8, 2023, the United States Department of Health and Human Services (“HHS”), through the Administration for Strategic Preparedness and Response and the Health Sector Coordinating Counsel Joint Cybersecurity Working Group, released an updated version of its Cybersecurity Framework Implementation Guide (the “Guide”) “to help the public and private health care sectors prevent cybersecurity incidents.”  Specifically, the Guide aims to help healthcare organizations leverage the NIST Cybersecurity Framework to “determine their cybersecurity goals, assess their current cybersecurity practices, or lack thereof, and help identify gaps for remediation.”  Continue Reading HHS Releases Guidance to Help Healthcare Organizations Align with the NIST Cybersecurity Framework

On March 7, 2023, the United States Transportation Security Administration (“TSA”) announced the issuance of new cybersecurity requirements for airport and aircraft operators on an emergency basis.  “The new emergency amendment requires that impacted TSA-regulated entities develop an approved implementation plan that describes measures they are taking to improve their cybersecurity resilience and prevent disruption and degradation to their infrastructure.”Continue Reading TSA Issues New Cybersecurity Requirements for Airport and Aircraft Operators

In February, the Federal Trade Commission (“FTC”) published a blog post that elucidated key security principles from recent FTC data security and privacy orders.  Specifically, the FTC highlighted three practices that the Commission regards as “effectively protect[ing] user data.”  These practices include: (1) offering multi-factor authentication (“MFA”) for consumers and requiring it for employees; (2) requiring that connections within a company’s system be both encrypted and authenticated (e.g., deploying a “zero trust” methodology); and (3) requiring companies to develop data retention schedules.  The FTC noted that while these measures “are not the sum-total of everything the FTC expects from an effective security program, they are a sample of provisions [that the FTC has] seen recently that speak directly to the idea of attacking things at their root cause to produce uniquely effective results.”Continue Reading FTC Publishes Blog Post on Data Security Practices for Complex Systems

On February 24, 2023, the Cyberspace Administration of China (“CAC”) released the final version of the Measures on the Standard Contract for the Cross-border Transfer of Personal Information (“Measures”) (only available in Chinese here), including a template contract (“Standard Contract”) accompanying the Measures.  The Measures will take effect on June 1, 2023, but are subject to a 6-month grace period to allow companies time to bring their activities into compliance.

The finalization of the Measures marks another important step forward in the establishment of China’s cross-border data transfer framework.  With implementing rules for all three lawful transfer mechanisms now in place, China appears to be entering into a new phase where cross-border transfer activities will be more closely regulated and enforcement actions are more likely to arise for non-compliance. Continue Reading China Finalizes Standard Contract for Cross-Border Transfers of Personal Information

At the CPPA board meeting last week, the agency adopted the regulations and directed the staff to file the rulemaking package with the Office of Administrative Law (“OAL”). Before these regulations can become effective (and therefore enforceable), the OAL must complete its review of the regulations.  It has 30 working…

Continue Reading CPPA Approves First Round of Draft Rules

The Federal Energy Regulatory Commission (“FERC”) issued a final rule (Order No. 887) directing the North American Electric Reliability Corporation (“NERC”) to develop new or modified Reliability Standards that require internal network security monitoring (“INSM”) within Critical Infrastructure Protection (“CIP”) networked environments.  This Order may be of interest to entities that develop, implement, or maintain hardware or software for operational technologies associated with bulk electric systems (“BES”).Continue Reading FERC Orders Development of New Internal Network Security Monitoring Standards

On January 19, 2023, the National Institute of Standards and Technology (“NIST”) published a Concept Paper setting out “Potential Significant Updates to the Cybersecurity Framework.”  Originally released in 2014, the NIST Cybersecurity Framework (“CSF” or “Framework”) is a framework designed to assist organizations with developing, aligning, and prioritizing “cybersecurity activities with [] business/mission requirements, risk tolerances, and resources.”  Globally, organizations, industries, and government agencies have increasingly relied upon the Framework to establish cybersecurity programs and measure their maturity.  The NIST CSF was previously updated in 2018, and NIST now seeks public comment on the latest changes outlined in the Concept Paper.Continue Reading NIST Requests Comments on Potential Significant Updates to the Cybersecurity Framework

This quarterly update summarizes key legislative and regulatory developments in the fourth quarter of 2022 related to Artificial Intelligence (“AI”), the Internet of Things (“IoT”), connected and autonomous vehicles (“CAVs”), and data privacy and cybersecurity.Continue Reading U.S. AI, IoT, CAV, and Privacy Legislative Update – Fourth Quarter 2022

On October 6, 2022, the Advocate General (“AG”) of the Court of Justice of the European Union (“CJEU”) released an opinion in case C-300/21 to the effect that a controller or processor’s non-compliance with the GDPR does not automatically entitle data subjects to receive compensation for non-material damages pursuant to Article 82 GDPR.  According to the AG, compensation is meant to remedy the consequences caused by a breach of the GDPR, and therefore a data subject must have suffered damage that he or she can affirmatively demonstrate.Continue Reading CJEU Advocate General Issues Opinion on Non-Material Damages for GDPR Breach