Delaware Gov. John Carney has signed into law a bill that will impose more stringent obligations for notifying affected Delaware residents in the event of a data breach, in addition to establishing requirements for Delaware businesses to maintain “reasonable” data security practices. In addition to expanding the types of information that would require notification of affected individuals if breached, the amendments will also require an entity to provide credit monitoring services if the breach involves Social Security numbers. Once the bill enters into force, entities will also have to notify the Delaware Attorney General if a breach affects more than 500 Delaware residents. The amendments will enter into force on approximately April 14, 2018.
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Data Breach
FTC Announces “Stick With Security” Initiative
The FTC announced today a new “Stick With Security” Initiative, building on its prior “Start With Security” guide as “part of its ongoing efforts to help businesses ensure that they are taking reasonable steps to protect and secure consumer data.” Stick With Security constitutes a series of blog…
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Advocacy Groups Urge FCC to End Data Retention Mandate
On April 24th, the Electronic Privacy Information Center (“EPIC”) and a coalition of 37 other civil society groups sent a letter urging the Federal Communications Commission (“FCC”) to act on an August 2015 petition to repeal the FCC’s data retention mandate under 47 C.F.R. §42.6 (“Retention of Telephone Toll Records”).
The mandate requires communications carriers that “offer[] or bill[] toll telephone service” to retain the following customer billing records for a period of 18 months: (1) the “name, address, and telephone number of the caller,” (2) the “telephone number called,” and (3) the “date, time, and length of the call.” Carriers are required to retain such information regardless of whether they are billing their own toll service customers or billing customers for another carrier.
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New Mexico Becomes 48th State with Data Breach Notification Law; Tennessee Restores Exemption for Encrypted Data
Last week, New Mexico and Tennessee both passed legislation updating each state’s requirements for notifying residents following a data breach. New Mexico’s new law, H.B. 15, makes it the 48th U.S. state to enact a state data breach notification law, leaving Alabama and South Dakota as the only states that have not enacted similar laws. Tennessee’s bill, S.B. 547, amended its Identity Theft Deterrence Act of 1999 to exempt certain encrypted data from triggering notification requirements.
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Irish Data Protection Commissioner Releases 2016 Annual Report
By Denitsa Marinova
On April 11, 2017, the Data Protection Commissioner of Ireland (DPC) published her annual report for 2016, highlighting key developments and activities for the past year and outlining priorities for 2017 and beyond. The report will be of interest to Irish entities and multinational organizations with a base in Ireland, including companies active in the technology and healthcare sectors.
In 2016, the DPC investigated a record number of complaints (1,479 in total, the majority involving data access requests); received 2,224 notifications of valid data security breaches (a decrease from 2015); carried out over 50 privacy audits and inspections; acted as lead reviewer in seven Binding Corporate Rules (BCR) applications; and held over 100 face-to-face meetings with multinational companies.
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NY Data Breaches Reached Record Levels in 2016
New York Attorney General Eric T. Schneiderman announced this week that there were a record number of data breach notices in New York in 2016, with nearly 1,300 reported data breaches exposing the personal records of 1.6 million New Yorkers. These numbers represented a 60 percent year-over-year increase in the number of data breaches reported, and a threefold increase in the number of records exposed.
According to an analysis conducted by the Attorney General’s office, which builds on a 2014 report, most of the exposed records consisted of social security numbers and financial account information, and the leading causes of data security breaches in New York were hacking and inadvertent disclosures. Schneiderman’s statement cautioned that these record numbers make it “all the more important for companies and citizens alike to take precaution when sharing and storing personal data” as “these breaches too often jeopardize the financial health of New Yorkers and cost the public and private sectors billions of dollars.”
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Updated OMB Breach Response Policy Includes Required Breach-Related Provisions for Federal Agency Contracts
Last week, the Office of Management and Budget issued an updated breach response policy for federal agencies, replacing a policy last updated in 2007. The policy, set forth in memorandum M-17-12, provides minimum standards for federal agencies in preparing for and responding to breaches of personally identifiable information (PII). …
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Reports Suggest New York DFS to Revise Proposed Cyber Regulations and Delay Implementation
Based on reports citing New York Department of Financial Services (“DFS”) sources (see here and here), DFS may propose a revised version of its first-in-the-nation cybersecurity regulations on December 28, 2016. That revision would be followed by a new 30-day comment period, with the revised regulations scheduled to take…
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Industry Reacts to New York’s Proposed Cybersecurity Regulation for Financial Services Institutions
On December 19, 2016, the New York State Assembly Standing Committee on Banks heard testimony about a proposed regulation introduced by the New York State Department of Financial Services that would require financial services companies to develop and implement cybersecurity programs to defend against cyber-attacks. As we covered when Governor…
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Data Breach Allegations Sufficient for Standing After Spokeo, Court Says
On Monday, the U.S. District Court for the District of Kansas ruled that the named plaintiff for a putative class of CareCentrix employees whose personal information was compromised had alleged enough harm for standing under Spokeo, Inc. v. Robins. The case is Hapka v. CareCentrix, Inc.
In early…
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