In an era where privacy, security, and artificial intelligence are at the forefront of many business operations, staying informed about the latest developments is crucial. Our 2023 Privacy Year in Review is an in-depth analysis of the past year’s significant advancements and challenges in these areas.
On January 16, New Jersey became the first state this year to enact a comprehensive privacy law, S332, which applies to businesses conducting operations in the state or targeting its residents. As noted in this article by our privacy team, similar to other state comprehensive privacy laws, S322 grants consumers the right to confirm, correct, delete, obtain a copy of their personal data, and opt out of its processing for targeted advertising, sale, or profiling. Controllers and processors are obligated to limit data collection, establish security practices, and provide a privacy notice. They are also required to conduct a data protection assessment for processing activities that pose a heightened risk of harm to consumers. The New Jersey Attorney General’s Office has exclusive authority to enforce violations, treating them as “unlawful practices” under the New Jersey Consumer Fraud Act. The law takes effect on January 16, 2025, with an 18-month grace period for organizations to correct violations before enforcement actions are taken.
On November 30, the Illinois Supreme Court unanimously ruled that the Biometric Information Privacy Act (BIPA) does not apply to health care workers whose fingerprints are collected, stored, and used to access medication and medical supplies.
This article was originally published on December 12, 2023 in Reuters and Westlaw Today. It is republished here with permission.
It is indeed a tangled regulatory web woven to potentially trap an organization in the wake of a data incident. Navigating this web can involve significant resources, time, and stress. As we discussed in part two of this series, “Your organization has suffered a data incident: Now here are the regulators it will likely encounter,” Reuters Legal News and Westlaw Today, Oct. 16, 2023, there is no shortage of regulators likely to come calling. Organizations therefore have little margin for error when assessing and responding to an incident.
Rutters, a prominent grocery chain in Pennsylvania with 80 locations statewide, settled a data breach investigation with Attorney General (AG) Michelle Henry’s office by agreeing to pay $1 million and to implement certain injunctive relief. Henry announced the settlement on Wednesday, October 11, following a months-long data breach lasting from 2018 to 2019 that potentially exposed the payment card data of 1.3 million Pennsylvania consumers.
This article was originally published on October 16, 2023 in Reuters and Westlaw Today. It is republished here with permission.
Government regulators are seemingly as numerous as the stars nowadays, especially in the universe of data incidents. When organizations experience a data incident, they will need to quickly assess what happened, why it happened, and who (e.g., clients, consumers, vendors, employees) was affected. They will also need to chart a course by which they resolve the incident while limiting their legal exposure.
This summer, the U.S. District Court for the Southern District of Illinois further bolstered Illinois’ Biometric Information Privacy Act’s (BIPA) nearly unfettered private right of action in Lewis v. Maverick Transportation. In a simple but firm four-page ruling, Judge Rosenstengel denied the defendant’s motion to dismiss, holding that a cause of action under BIPA does not require a plaintiff to plead that data collected is used for identification purposes. The ruling serves to highlight the apparent lack of any real technical defenses to the statute — making it imperative that companies focus on strict compliance before they find themselves in court.
On July 25, Missouri, Arkansas, and Iowa (the states), along with intervenors American Water Works Association and National Rural Water Association (the water associations), petitioned the Eighth Circuit to review the U.S. Environmental Protection Agency’s (EPA) new rule requiring states to review and report cybersecurity threats to their public water systems (PWS).
This article was originally published on August 24, 2023 in Reuters and is republished here with permission.
In the burgeoning realm of data incidents, it is a truism that such incidents are not created equal. Indeed, a data incident is not necessarily a data breach.
An incident is any “occurrence that actually or potentially jeopardizes the confidentiality, integrity or availability of an information system,” or an event that constitutes a violation of an organization’s computer security or acceptable use policies. National Institute of Standards and Technology, Minimum Security Requirements for Federal Information and Information Systems, FIPS 200, at 7 (Mar. 9, 2006) (nist.gov). A breach is an incident that imposes statutory and regulatory obligations on an affected organization when it holds or controls certain consumer information.
The Massachusetts Gaming Commission is in the process of shaping new regulatory standards for sports wagering in Massachusetts, following the state’s adoption last summer of the Massachusetts Sports Wagering Act, Mass. Gen. Laws ch. 23N, which legalized sports betting in the Commonwealth.