On July 9, 2024, the FTC and California Attorney General settled a case against NGL Labs (“NGL”) and two of its co-founders. NGL Labs’ app, “NGL: ask me anything,” allows users to receive anonymous messages from their friends and social media followers. The complaint alleged violations of the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), the Children’s Online Privacy Protection Act (COPPA), and California laws prohibiting deceptive advertising and prohibiting unfair and deceptive business practices.
Continue Reading FTC Reaches Settlement with NGL Labs Over Children’s Privacy & AIUncategorized
HHS Modifies Privacy Rule to Support Reproductive Health Care Privacy
HHS Modifies Privacy Rule to Support Reproductive Health Care Privacy
On April 26, 2024, the Office for Civil Rights (“OCR”) at the U.S. Department of Health & Human Services (“HHS”) published a final rule that modifies the Standards for Privacy of Individually Identifiable Health Information (“Privacy Rule”) under the Health Insurance Portability and Accountability Act (“HIPAA”) regarding protected health information (“PHI”) concerning reproductive health. We previously covered the proposed rule (hereinafter, “the NPRM”), which was published on April 17, 2023. The final rule aligns closely with the NPRM.
Continue Reading HHS Modifies Privacy Rule to Support Reproductive Health Care PrivacyCongress Passes Bill Prohibiting Sharing or Selling Americans’ Sensitive Data to Entities Controlled by Foreign Adversaries
On April 24, 2024, President Biden signed into law H.R. 815, which includes the Protecting Americans’ Data from Foreign Adversaries Act of 2024 (“the Act”), a bill that passed the House 414-0 as H.R. 7520 on March 20. The Act is one of several recent actions by the U.S. government to regulate transfers of U.S. personal data for national security reasons, with a particular focus on China. While the ultimate policy objectives are similar, the Act takes a different approach by comparison to the Biden Administration’s Executive Order on Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern (“the EO”), which the U.S. Department of Justice (“DOJ”) is in the process of implementing. We summarize below some key features of the Act, which will go into effect on June 23, 2024.
Continue Reading Congress Passes Bill Prohibiting Sharing or Selling Americans’ Sensitive Data to Entities Controlled by Foreign AdversariesFlorida Enacts Social Media Bill Restricting Access for Teens Under the Age of Sixteen
On Monday, March 25, Florida Governor Ron DeSantis signed SB 3 into law. At a high level, the bill requires social media platforms to terminate the accounts of individuals under the age of 14, while seeking parental consent for accounts of those 14 or 15 years of age. The law will become effective January 1, 2025.
Continue Reading Florida Enacts Social Media Bill Restricting Access for Teens Under the Age of SixteenChina Eases Restrictions on Cross-Border Data Flows
After nearly six months since the initial draft was issued for public comments on September 28, 2023 (see here for our previous alert on that development), on March 22, 2024, the Cyberspace Administration of China (“CAC”) issued the final version of the Provisions on Promoting and Standardizing Cross-Border Data Flows (促进和规范数据跨境流动规定) ( “Provisions”) (Chinese version available here). The Provisions take effect immediately.
The newly finalized Provisions introduce significant changes to China’s existing cross-border data transfer regime. These changes primarily involve exemptions from the previously mandated transfer mechanisms outlined in the Personal Information Protection Law (“PIPL”) and its implementing regulations. Such mechanisms included undergoing a government-led security assessment, entering into a standardized contract, or obtaining personal information protection certification. As a result, many companies that previously faced these requirements may now be exempt, easing their compliance burden for cross-border data transfers. Importantly, the Provisions take precedence over any conflicting provisions within PIPL’s implementing regulations, including the Measures on the Standard Contract for Cross-Border Transfer of Personal Information and the Measures for Security Assessment of Cross-Border Data Transfer.
Continue Reading China Eases Restrictions on Cross-Border Data FlowsFTC Returns to Bipartisan Commission with Confirmation of Two New Republican Commissioners
On Thursday, March 7, 2024, the U.S. Senate confirmed two nominees for the open seats on the Federal Trade Commission: Andrew N. Ferguson, former solicitor general of the Commonwealth of Virginia; and Melissa Holyoak, former solicitor general with the Utah Attorney General’s Office. With this confirmation of two new Republican Commissioners, the FTC is one step closer to a full slate of five bipartisan Commissioners. The Senate also re-confirmed Commissioner Rebecca Kelly Slaughter for a second term. President Biden had nominated Ferguson and Holyoak on July 11, 2023, and renominated Slaughter on February 13, 2023.
Continue Reading FTC Returns to Bipartisan Commission with Confirmation of Two New Republican CommissionersFTC Announces Proposed Consent Orders Related to Location Data
The FTC recently announced proposed consent orders with Outlogic (formerly X-Mode Social) and InMarket Media concerning their collection and monetization of precise geolocation data. Both companies collect location data using software development kits (“SDKs”) installed in first and third party apps, among other data sources. According to the FTC’s complaints, Outlogic sold this data to third parties (including in a manner that revealed consumer’s visits to sensitive locations) without obtaining adequate consent, and InMarket used this data to facilitate targeted advertising without notifying consumers that their location data will be used for targeted advertising. In both cases, the FTC alleged that these acts and practices constituted unfair and/or deceptive acts or practices under Section 5 of the FTC Act.
Continue Reading FTC Announces Proposed Consent Orders Related to Location DataDepartment of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and Resellers
On January 29, 2024, the Department of Commerce (“Department”) published a proposed rule (“Proposed Rule”) to require providers and foreign resellers of U.S. Infrastructure-as-a-Service (“IaaS”) products to (i) verify the identity of their foreign customers and (ii) notify the Department when a foreign person transacts with that provider or reseller to train a large artificial intelligence (“AI”) model with potential capabilities that could be used in malicious cyber-enabled activity. The proposed rule also contemplates that the Department may impose special measures to be undertaken by U.S. IaaS providers to deter foreign malicious cyber actors’ use of U.S. IaaS products. The accompanying request for comments has a deadline of April 29, 2024.
Continue Reading Department of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and ResellersU.S. Tech Legislative, Regulatory & Litigation Update – Fourth Quarter 2023
A new post on the Covington Inside Global Tech blog highlights key legislative, regulatory, and litigation developments in the fourth quarter of 2023 and early January 2024 related to technology issues. These included developments related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), data privacy, and cybersecurity. As noted…
Continue Reading U.S. Tech Legislative, Regulatory & Litigation Update – Fourth Quarter 2023U.S. Senate Passes REPORT Act to Expand Scope of CSAM Reporting Obligations
On December 14, 2023, the U.S. Senate passed the Revising Existing Procedures on Reporting via Technology (“REPORT”) Act (S. 474), which, among other provisions, would impose new obligations on providers to report additional categories of online child sexual abuse material (“CSAM”) under 18 U.S.C. § 2258A.
Continue Reading U.S. Senate Passes REPORT Act to Expand Scope of CSAM Reporting Obligations