Privacy & Information Security Law Blog

On April 25, 2019, the Belgian Data Protection Authority (the “Belgian DPA”) published its Annual Activity Report for 2018 (the “Annual Report”), highlighting the main developments and accomplishments of the past year.

On April 15, 2019, the UK Information Commissioner’s Office (the “ICO”) issued for public consultation a draft code of practice, “Age Appropriate Design,” that will regulate the provision of online services likely to be accessed by children in the UK. Given the extraterritorial reach of the UK Data Protection Act 2018, organizations based outside of the UK may be subject to the code, which is expected to take effect by the end of 2019. The deadline for responding to the public consultation is May 31, 2019.

On April 24, 2019, the Federal Trade Commission announced two data security cases involving online operators—one, an online rewards website, and the second, a dress-up games website—that were alleged to have failed to take reasonable steps to secure consumers’ data, which allowed hackers to breach both websites.

On April 15, 2019, the Greek Data Protection Authority (“DPA”) fined Hellenic Petroleum S.A. EUR 20,000 for unlawful processing of personal data and EUR 10,000 for failing to adopt appropriate data security measures.

On April 22, 2019, Washington state legislators voted to send HB 1071 (the “Bill”) to Governor Jay Inslee for consideration. The Bill was requested by Attorney General Ferguson and would strengthen Washington’s data breach law. The request to amend the current law followed Attorney General Ferguson’s third annual Data Breach Report, which found that data breaches affected nearly 3.4 million Washingtonians between July 2017 and July 2018.

On April 17, 2019, the Dutch Data Protection Authority, the Autoriteit Persoonsgegevens (the “Dutch DPA”) issued six recommendations (in Dutch) for companies, to be taken into account when drafting privacy policies for the purpose of Article 24.2 of the EU General Data Protection Regulation (the “GDPR”). Article 24.2 of the GDPR provides the obligation for data controllers to implement privacy policies for accountability purposes, under certain criteria. The published recommendations follow the Dutch DPA’s investigation of companies’ privacy policies. The investigation focused on companies that process sensitive personal data, including health data and data related to individuals’ political beliefs. Alongside the recommendations, the Dutch DPA released a report (in Dutch) summarizing the investigation’s results.

Earlier this month, the U.S. Department of Justice (“DOJ”) published a white paper entitled “Promoting Public Safety, Privacy, and the Rule of Law Around the World: The Purpose and Impact of the CLOUD Act” (“White Paper”). The Clarifying Lawful Overseas Use of Data Act (the “CLOUD Act”) was enacted in March 2018 by the U.S. government to aid foreign and U.S. investigators in obtaining access to electronic information related to serious crimes and held by service providers. The CLOUD Act authorizes the U.S. to enter into bilateral agreements with foreign countries that abide by a baseline standard for rule-of-law, privacy and civil liberties protections to streamline processes for obtaining electronic evidence. The CLOUD Act also codifies the principle that a company subject to U.S. jurisdiction “can be required to produce data the company controls, regardless of where it is stored at any point in time.”

On October 22, 2018, the UK Court of Appeal upheld the High Court’s decision that VM Morrison Supermarkets PLC (“Morrisons”) was vicariously liable for a data breach caused by a disgruntled former employee, despite Morrisons being cleared of any wrongdoing (VM Morrison Supermarkets PLC v Various Claimants). The case is important, given its potential “floodgate” effect on data breach class action claims in the UK. The Supreme Court has granted Morrisons permission to appeal the judgment on all grounds.

Hunton Andrews Kurth LLP is pleased to announce the launch of a dedicated site focused on the California Consumer Privacy Act of 2018 (“CCPA”), which serves as a resource for businesses to understand and prepare to comply with the CCPA. Transformative in nature, the CCPA will impact most businesses that process the personal information of California residents, and is likely to set the stage for a wider shift in standards on data privacy across the United States.

The much-discussed Washington Privacy Act, Senate Bill 5376 (“SB 5376”), appears to have died after failing to receive a House vote by an April 17, 2019 deadline for action on non-budget policy bills. Though the bill could be revived before the regular session ends on April 28, 2019, Washington lawmakers expressed doubt.