On March 15, 2022, President Biden signed the Consolidated Appropriations Act 2022, a $1.5 trillion omnibus spending package to fund the government through September 2022.  The omnibus spending package includes the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (the “Act”), which establishes two cyber incident reporting requirements for covered critical infrastructure entities:  a 24-hour requirement to report any ransomware payments to the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) and a 72-hour requirement to report all covered cyber incidents to CISA.  These requirements will take effect upon the issuance of implementing regulations from the Director of CISA.
Continue Reading President Biden Signs Critical Infrastructure Ransomware Payment and Cyber Incident Reporting into Law

Last Thursday, the Eastern District of Virginia in United States v. Chatrie, No. 19-cr-00130, 2022 WL 628905, denied a motion to suppress evidence obtained from Google pursuant to a geofence search warrant.  Geofence warrants are a relatively new investigative tool that target private companies’ databases of location data, compelling these companies to produce the location data of every user that was in a particular area over a particular span of time.  The court invalidated the warrant for lack of particularized probable cause, but declined to suppress the evidence obtained from Google—which linked the defendant to the scene of a 2019 bank robbery—because the officers sought the warrant in good faith.
Continue Reading Federal Court Expresses Skepticism About Validity of Geofence Warrants But Declines Suppression Remedy

Utah appears poised to be the next state with a comprehensive privacy law on its books, following California, Virginia, and Colorado.  On March 2nd, the Utah House of Representatives voted unanimously to approve an amended version of the legislative proposal, and the Senate concurred with the House amendment on the following day.  Formalities are now being completed to send the bill to Governor Spencer Cox for signature.

The Utah Consumer Privacy Act (“UCPA”) provides for consumer rights and responsibilities for controllers and processors.  Although the bill generally tracks the comprehensive privacy law passed in Virginia last year, the VCDPA, there are some notable differences.  Key provisions in the bill include the following:
Continue Reading Utah Legislature Passes Comprehensive Privacy Bill

An Illinois federal district court recently rejected dismissal of Illinois Biometric Information Privacy Act (“BIPA”) claims in In re Clearview AI, Inc., Consumer Privacy Litigation, No. 21-cv-135 (N.D. Ill.).  The Clearview plaintiffs alleged that Clearview violated their privacy rights without their knowledge and consent by scraping more than three billion photographs of facial images from the internet and using artificial intelligence algorithms on the images to harvest individuals’ unique facial biometric identifiers and corresponding biometric information.  Clearview sought dismissal of the BIPA claims under the First Amendment, extraterritoriality doctrine, dormant commerce clause, and BIPA’s express exemption for  photographs.  The court rejected these grounds, and declined to dismiss the BIPA claims.
Continue Reading Court Rejects Dismissal of Illinois Biometric Information Privacy Act Against Clearview AI in Pending Multidistrict Litigation

Last week, Senators Richard Blumenthal (D-CT) and Marsha Blackburn (R-TN) introduced the bipartisan Kids Online Safety Act (“KOSA”), which would impose new safeguards, tools, and transparency requirements for minors online.  The bill applies to entities that are a “commercial software application or electronic service that connects to the internet and that is used, or is

On January 18, 2022, a New Jersey bill which prohibits employers from making use of tracking devices in vehicles operated by employees without providing written notice was passed into law. See Assembly Bill A3950. Effective April 18, 2022, the law will subject employers that knowingly make use of a “tracking device” in a vehicle used by an employee without providing written notice to the employee to civil penalties not exceeding $1,000 for the first violation and not exceeding $2,500 for the second violation. Id.
Continue Reading New Jersey Law Requires Employers to Provide Notice Before Tracking Vehicles

2021 was another busy year for data privacy regulatory enforcement and litigation. With some distance to reflect on last year, we have prepared this post identifying and describing important trends from 2021 that can help provide insight into what to expect in the data privacy landscape in 2022.

Data Privacy Regulatory Enforcement Trends

Federal Trade Commission (FTC) and state enforcement action in 2021 centered on several key areas, including protecting children.

An FTC enforcement action last year alleged that the maker of an online coloring book application violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal information about children who used the app without notifying their parents and obtaining their consent.  The allegations note that the app included a “Kids” category that was targeted to children.  The FTC further claimed that the app’s social media features collected personal information from users and that some parents, lacking knowledge of these features, may have inadvertently permitted their young children to use the app.
Continue Reading 2021 Trends in Privacy Regulatory Enforcement and Litigation

On Thursday, the Illinois Supreme Court unanimously ruled in McDonald v. Symphony Bronzeville Park LLC that the exclusivity provisions of the state’s workers’ compensation statute do not preclude liquidated damages claims under the Biometric Information Privacy Act.  The decision narrows the defenses available to employers facing employment-related BIPA claims.

Illinois’s Workers’ Compensation Act generally provides the exclusive means by which an employee can recover against an employer for a work-related injury and requires such claims to be adjudicated before the Illinois Workers’ Compensation Commission, subject to several exceptions.  One of those exceptions is for injuries that are not compensable under the Workers’ Compensation Act.  At issue in McDonald was whether an alleged employment-based BIPA violation—here, the alleged use of a fingerprint-based timekeeping system without the required disclosures or consent—was the type of injury covered by the Workers’ Compensation Act.
Continue Reading Illinois Supreme Court Rules Workers’ Compensation Act Does Not Bar BIPA Liquidated Damages Claims

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

Early last week, Senator Cory Booker (D-NJ) and Congresswomen Anna Eshoo (D-CA) and Jan Schakowsky (D-IL) introduced a new bill, the Banning Surveillance Advertising Act, which would prohibit ad tech companies and other advertisers from engaging in targeted or “surveillance” advertising.  Targeted advertising is defined under the bill as the dissemination of ads based