Federal Trade Commission

In a new post on the Covington Digital Health blog, our colleagues discuss recently announced Federal Trade Commission (“FTC”) guidance meant to help companies determine their obligations under the Health Breach Notification Rule (the “Rule”).  The guidance follows the FTC’s September 2021 Policy Statement, which expanded the Rule’s application to the developers of health…

On January 4, 2022, the Federal Trade Commission published a warning to companies and their vendors to take reasonable steps to remediate the Log4j vulnerability (CVE-2021-44228).  The FTC provided a list of recommended remedial actions for companies using the Log4j software.  The FTC’s warning references obligations under the FTC Act and Gramm Leach Bliley Act (“GLBA”) to take reasonable action to remediate vulnerabilities, and hints at potential inquiries and enforcement actions against companies and vendors that fail to do so.  As the FTC notes in its warning, the “FTC intends to use its full legal authority to pursue companies that fail to take reasonable steps to protect consumer data from exposure as a result of Log4j, or similar known vulnerabilities in the future.”
Continue Reading FTC Warns Companies to Remediate the Log4j Vulnerability and Hints at Potential Enforcement Actions

On September 29, 2021, the Senate Committee on Commerce, Science, and Transportation held a hearing entitled “Protecting Consumer Privacy.”  The hearing centered on strengthening consumer privacy rights, including by increasing the FTC’s resources and creating a comprehensive federal privacy law.

To explore these issues, the Committee invited David Vladeck, Professor and Faculty Director of the Center on Privacy and Technology at Georgetown Law and former Director of the FTC Bureau of Consumer Protection; Morgan Reed, President of The App Association; Maureen Ohlhausen, Partner and Section Chair (Antitrust & Competition Law) at Baker Botts and former Acting Chairman of the FTC; and Ashkan Soltani, Independent Researcher and Technologist and former Chief Technologist of the FTC.
Continue Reading Consumer Privacy Hearing Focuses on Expanding FTC Resources, Creating Federal Privacy Law

On September 15, the Federal Trade Commission (“FTC”) adopted, on a 3-2 party-line vote, a policy statement that takes a broad view of which health apps and connected devices are subject to the FTC’s Health Breach Notification Rule (the “Rule”) and what triggers the Rule’s notification requirement.

The Rule was promulgated in 2009 under the Health Information Technology for Economic and Clinical Health (“HITECH”) Act.  Under the Rule, vendors of personal health records that are not otherwise regulated under the Health Insurance Portability and Accountability Act (“HIPAA”) are required to notify individuals, the FTC, and, in some cases, the media following a breach involving unsecured identifiable health information.  Third-party service providers also are required to notify covered vendors of any breach.
Continue Reading FTC Adopts Policy Statement on Privacy Breaches by Health Apps and Connected Devices

Yesterday, Rep. Kathy Castor (D-FL) introduced an updated version of the “Protecting the Information of our Vulnerable Children and Youth Act” (Kids PRIVCY Act), which would make broad changes the Children’s Online Privacy Protection Act (COPPA).  Rep. Castor introduced a similar bill in early 2020, but it stalled alongside other proposals to overhaul the federal children’s privacy law last year.
Continue Reading Rep. Castor Reintroduces Bill to Rewrite the Children’s Online Privacy Protection Act

To add to the growing list of federal privacy frameworks introduced this year, Senator Amy Klobuchar (D-MN) has re-introduced the bipartisan Social Media Privacy Protection and Consumer Rights Act of 2021 (S. 1667).  Senator Klobuchar introduced the bill originally in 2018 and 2019, although it did not advance to committee in either instance.  Senators Kennedy (R-LA), Burr (R-NC), and Manchin (D-WV) have co-sponsored the bill.

Key provisions in this bill include:
Continue Reading New Privacy Bill Provides Opt-Out Rights and New Data Security Requirements

This week, Senators Ed Markey (D-Mass.) and Bill Cassidy (R-La.) introduced the Children and Teens’ Online Privacy Protection Act, which would update the Children’s Online Privacy Protection Act (COPPA).  COPPA is the comprehensive federal children’s privacy law enacted in 1998 that regulates the collection, use, and disclosure of personal information online from children under 13.
Continue Reading Senators Markey and Cassidy Introduce Bill to Update the Children’s Online Privacy Protection Act

As the push for Congress to pass comprehensive consumer privacy legislation increases, Rep. Suzan DelBene (D-WA) has re-introduced the Information Transparency & Personal Data Control Act, a compromise proposal that contains provisions sought by both parties.  This bill would create national data privacy standards and increase the enforcement authority of the Federal Trade Commission (FTC) and state attorneys general.
Continue Reading Bill Introduced Would Preempt State Laws and Strengthen FTC Enforcement 

In a new post on the Covington Digital Health blog, our colleagues discuss a recent settlement between the Federal Trade Commission (“FTC”) and Flo Health, Inc. (“Flo”), the developer of a popular menstrual cycle and fertility-tracking application.  The settlement resolves allegations that Flo shared app users’ health information with outside third parties after promising…

On February 4, 2021, the House Energy and Commerce’s Subcommittee on Consumer Protection and Commerce held a hearing entitled, “Safeguarding American Consumers: Fighting Scams and Fraud During the Pandemic.”  The hearing focused on the FTC’s ability to obtain equitable monetary relief under Section 13(b) of the FTC Act – an issue that is currently being considered by the Supreme Court in AMG Capital Management LLC v. Federal Trade Commission.

To gain a better understanding of the deceptive marketing campaigns seeking to exploit the ongoing public health crisis and the challenges the FTC faces in fighting fraud, the Subcommittee invited Bonnie Patten, Executive Director of TruthInAdvertising.org; Jessica Rich, former Bureau of Consumer Protection Director and Distinguished Fellow of the Institute for Technology Law & Policy at Georgetown Law School; William E. Kovacic, former FTC Chairman and Global Competition Professor of Law at George Washington University Law School; and Traci Ponto, Spokane COPS Crime Victim Advocate at Spokane Community Oriented Policy Services.
Continue Reading Hearing on Consumer Protection During the Pandemic Focuses on FTC’s Equitable Monetary Authority