In the wake of a recent announcement by a major Dutch bank that it would start providing its customers with personalized advertisements based on their spending patterns, the Dutch Data Protection Authority (DPA) has sent a letter to all Dutch banks urging them to thoroughly review their direct marketing practices. The DPA specifically asked any bank contemplating the use of transaction data for direct marketing to reconsider. In its analysis, the DPA may have introduced a very onerous obligation to re-collect personal data for every single use.
As companies continue to grapple with interpreting how the GDPR’s principles apply to their own businesses, in particular contexts, there is a growing need for data protection regulators to provide clarity on the practical application of the regulation. In the UK, the Information Commissioner has recently taken steps to address these concerns through the announcement of a ‘Regulatory Sandbox’.
On 8 July 2019, the UK data protection authority issued a notice of its intention to fine British Airways GBP 183.39 million (approx. USD 229.46 million) for infringements of the General Data Protection Regulation. The proposed fine relates to a data breach in which personal data of approximately 500,000 customers were compromised.
The French Data Protection Authority has made targeted online advertising a priority topic in its 2019-2020 agenda and has changed its position on cookie consent. Although the ePrivacy Regulation is still being debated by EU legislators and is far from being finalised, the CNIL has withdrawn its 2013 cookie recommendation and announced that it will publish new guidelines (announcements are available in English on the CNIL’s website here and here). These explicitly rule out the use of implied or “soft” consent to place cookies on users’ devices.
Join us in July as we explore the meaning of privacy, what a federal privacy law in the U.S. might include, cyberthreats in the Internet of Things, medical device cybersecurity in Europe, and more. We hope you can join us.
On June 13, 2019, a new draft bill imposing multi-million ruble fines for infringing Russian data localization and information security laws—multiplying the maximum penalty under current law by a magnitude of 240—was submitted to the State Duma (the lower chamber of Russian Parliament). This would supplement existing fines, which we reported were previously increased in 2017.
On 6 June, 2019, the Privacy Commissioner for Personal Data issued an enforcement notice against Cathay Pacific Airways (and its affiliate Hong Kong Dragon Airlines) (together, “Cathay Pacific”) in respect of a data breach concerning unauthorized access to the personal data of some 9.4 million Cathay Pacific customers.
On May 28, 2019, the Cyberspace Administration of China released the draft Measures on the Administration of Data Security for public consultation. This Data Security Measures will be a great leap forward in China’s current data protection landscape, which mainly consists of scattered provisions contained in various pieces of legislations and standards, such as the Cyber Security Law, the E-Commerce Law, the Consumer Rights Protection Law as well as the Personal Information Security Specification, the most comprehensive yet non-binding national standard with respect to data protection. The Data Security Measures, once officially promulgated, will be the first binding administrative regulation in China to specifically and systematically set out explicit protection for personal data and important data collected and processed through the use of cyber technologies, following the effectiveness of the Cyber Security Law in 2017.
Although South Africa’s first comprehensive piece of data protection legislation, the Protection of Personal Information Act, was originally signed into law in November 2013, the substantive provisions of the law have not yet taken legal effect. That is likely to change since South Africa’s data protection authority, the Information Regulator, published the final draft of its POPIA regulations in December 2018.
A number of legislative proposals seeking to amend the California Consumer Privacy Act are moving forward following an April 23 hearing before the California Assembly’s Committee on Privacy and Consumer Protection in which the bills were approved. The bills will now advance to the Assembly’s Appropriations Committee before being voted on by the full Assembly and potentially advancing to the California Senate for consideration.
The European Data Protection Board has adopted the narrowest possible interpretation of ‘contractual necessity’ as a ground for processing of personal data. The Guidelines 2/2019 on the processing of personal data under Article 6(1)(b) GDPR in the context of the provision of online services to data subjects (adopted on April 9, 2019 and open for consultation until May 24, 2019) provide a detailed assessment of the regulator’s interpretation of the law.
2018 was a momentous year for data protection and cyber security regulation globally – the implementation of the European Union’s General Data Protection Regulation (GDPR) was, of course, the main event. The shockwaves of GDPR hit APAC with full force, coupled with the promulgation of an important GDPR-inspired national standard in China and the tabling of a draft data protection law in India that shares the same lineage. Rising public awareness of data protection concerns, due to the ever increasing volume and scale of cyber incidents in APAC, means that these issues are front and centre for organizations in terms of brand values, effective risk management and stewardship of increasingly valuable data assets. Our Guide provides a practical toolkit for organizations seeking to create an effective data protection and cyber security compliance program.
The President of the Personal Data Protection Office in Poland imposed a fine amounting to PLN 943,470 for failing to fulfil the company’s transparency obligations towards over six million data subjects under Article 14 of Europe’s General Data Protection Regulation. This is the first fine imposed by the Polish DPA under the GDPR and Poland’s Act on Personal Data Protection of 10 May 2018 implementing the GDPR. The decision provides some limited insights into the interpretation of the term “disproportionate effort” within the meaning of Article 14(5)(b) of the GDPR.
Subject to the deadlock in parliament being broken, or an extension of the Article 50 Brexit process, the UK’s 46-year European Union membership will cease in a matter of days. In the privacy world, the primary focus for most companies to date has, quite rightly, been on ensuring that data flows in and out of the UK can continue lawfully after that date. But for companies operating across Europe, and indeed across the world, with establishments or customers in the UK, Brexit also has implications in terms of the applicability of the UK data protection framework to their operations. The UK government has published its catchily-titled draft Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2019, which amend the territorial applicability provisions of the UK’s Data Protection Act 2018 to ensure the law applies appropriately after the exit day.
On February 27, 2019, the Federal Trade Commission (“FTC”) announced that it settled with the operators of a video social networking app for a record civil penalty of $5.7 million under the Children’s Online Privacy Protection Act (“COPPA”). This FTC COPPA action was notable not just for the size of the penalty, but also because of the joint statement by the two Democratic Commissioners, Rebecca Slaughter and Rohit Chopra, that future FTC enforcement should seek to hold corporate officers and directors accountable for violations of consumer protection law.
Join us in March as we explore key questions on the California Consumer Privacy Act, TCPA considerations for financial services, regulatory decisions on transparency and evolving industry approaches to the GDPR, artificial intelligence, as well as how Brexit will impact data protection and privacy professionals.
A bill introduced to amend the California Consumer Privacy Act of 2018 (“CCPA” or the “Act”) could greatly expand the risks to businesses that collect the personal information of California consumers. Senate Bill 561 (“SB 561”) would expand the CCPA’s private right of action to any violation of a consumer’s CCPA rights, remove the existing 30-day cure period, and eliminate businesses’ right to consult the AG’s office regarding compliance. SB 561 would not impact the CCPA’s current effective date of January 1, 2020.
Many companies have been struggling with GDPR implementation over the past two years, putting much effort into new roles, privacy concepts, and workflows. Now that the dust of the immediate GDPR compliance rush is settling, the first details of fines imposed under the GDPR and the number of cases pending with Data Protection Authorities (DPAs) in Europe are being made public. In Germany, DPAs are investigating a broad range of non-compliance issues and showing a tendency toward increasing their enforcement activities, to the point that we expect an announcement of increasing GDPR sanctions and fines in Germany in the near future.
With the coming into effect of the General Data Protection Regulation (“GDPR”), those conducting clinical trials in the EU face a complex set of rules ranging from lawful grounds for processing and transparency to restrictions on data transfers and secondary uses. To assist with this task the European Commission is in the process of adopting a Q&A document on which it has sought the advice from the European Data Protection Board (“EDPB”).
Much of the focus on the California Consumer Protection Act (“CCPA”) has been on the new rights that it affords California consumers, including the rights to access, delete, and opt out of the sale of their personal information. But arguably the greatest risk to covered businesses involves data security, as the CCPA creates for the first time a private right of action with substantial statutory penalties for breaches involving California consumers’ personal information. This installment of the Hogan Lovells’ CCPA series explains the CCPA’s security requirement and consequences for non-compliance, and describes security controls that most organizations can implement to mitigate this risk.
The Illinois Supreme Court ruled on January 25 in Rosenbach v. Six Flags Entertainment Corp. that a plaintiff can allege a violation of rights under the state’s Biometric Information Protection Act (BIPA) even without alleging “injury or damage beyond infringement of the rights afforded them under the law.” The court decided the issue solely as a matter of statutory construction under Illinois law. This decision will have a major impact on a number of pending BIPA lawsuits and is likely to result in increased BIPA litigation given the availability of statutory damages and attorneys’ fees under the law.
Right now, the whole of the U.K. appears to be on the same spot looking over a precipice. However, this is not the moment to be blind. As politicians struggle to find a magic formula for a prosperous Brexit, businesses are stepping up their efforts to mitigate the damage of a possible “no-deal Brexit.” The data protection community is no different. The proposed withdrawal agreement would have preserved the status quo in data protection terms, at least until the end of the transition period in December 2020. However, if the U.K. leaves the EU without a deal, the implications for international data flows and privacy compliance generally will be severe. Therefore, British pragmatism demands an urgent and thorough approach to preparing for the eventuality of a no-deal Brexit.
Although Brazil’s new General Data Privacy Law (LGPD) significantly expands Brazil’s data protection framework and places the country among one of the few jurisdictions to provide similar data privacy protections as those offered in the European Union, the new law did not create a data protection authority. On 28 December 2018, outgoing President Michel Temer signed Medida Provisória no. 869/18, a last-minute executive order that made important changes to the LGPD and most notably created the Brazilian National Data Protection Authority (ANPD).