August 2021 – Cyber Law Watch

An even ‘hacking’ field – Government Surveillance Bill passed by Parliament

Aug 30 2021

By Cameron Abbott and Ella Richards

The Surveillance Legislation Amendment (Identify and Disrupt) Bill 2020 (Identify and Disrupt Bill) passed both houses of federal parliament on 25 August 2021. The new legislation extends the power of law enforcement agencies to identify and disrupt suspected online criminal activity through the provision of three new warrants.

The new warrants provide the Australian Federal Police and the Australian Criminal Intelligence Commission with the power to:

Modify or delete the data of suspected offenders (data disruption warrants);
Collect intelligence on criminal networks (network activity warrants), and
Take control of a suspected offenders’ online account (account takeover warrants).

Anyone required to assist with government hacking is protected from civil liability. However, anyone who refuses to comply can face up to 10 years’ imprisonment.

Online criminal networks are evolving rapidly with the use of anonymising technology – making the detection of serious online crime near impossible. Encrypted applications such as Discord have stated that approximately 536 verified dealers sold $100,000+ of illegal substances/stolen goods in one week, despite Discord’s “zero-tolerance” approach to illegal activity.

On the other hand, the Office of the Australian Information Commissioner (OAIC) previously warned that the new warrant powers could adversely impact the privacy of a large number of individuals – including those with no suspected involvement in criminal activity.

The complexity of online crime makes it increasingly necessary for law enforcement agencies to level the playing field, identify suspected criminal activity and intercept that activity before it is actioned. However, proportionate consideration of individual privacy rights has created a lively debate in the passage of the legislation thus far.

The Surveillance Legislation Amendment (Identify and Disrupt) Bill 2021 is now awaiting Royal Assent. Keep an eye on our Cyber Law Watch blog further updates.

UK unveils plan to diverge from GDPR

Aug 30 2021

By Norin McFadden and Claude-Étienne Armingaud

The UK government has announced that it intends to consult on a new, post-Brexit data protection regime, potentially moving away from the UK General Data Protection Regulation that currently underpins the UK’s data protection legislation. The Digital Secretary, Oliver Dowden, said, “It means reforming our own data laws so that they’re based on common sense, not box-ticking.”

A public consultation on the new legislation will follow, but it is clear that the United Kingdom must be careful about any changes it makes to its data regime in order to avoid disrupting the EU-UK adequacy decision with EU GDPR awarded just two months ago. The adequacy decision allows personal data from the European Union to flow freely to the United Kingdom (and vice versa), without businesses needing to put any additional paperwork in place. In granting the adequacy decision, the European Union placed particular emphasis on the fact that the United Kingdom was continuing to base its data protection laws on the same EU GDPR rules that had applied when it was a member of the European Union. A European Commission spokesperson commented that the EU will be closely monitoring any developments in UK data laws and noted that: “In case of problematic developments that negatively affect the level of protection found adequate, the adequacy decision can be suspended, terminated or amended, at any time by the Commission.”

It will be interesting to see how far the United Kingdom diverges, particularly as the current trend is that other countries seem to be keen to state that their data protection laws closely follow the EU GDPR.

The UK government also announced that its preferred candidate to be the next Information Commissioner, head of the UK data protection regulator, will be John Edwards, currently in charge of New Zealand’s data regulator, a country that also maintains an EU adequacy decision.

Reminder for One-Month Deadline to Implement New SCCs in New Contracts

Aug 27 2021

By Jake Bernstein and Jane Petoskey

In early June 2021, the European Commission published a new set of standard contractual clauses (SCCs) effective June 27, 2021 for cross-border data transfers and between controllers and processors. The new SCCs cover changes in data protection laws, including the invalidation of the EU-US Privacy Shield and the fallout from the Court of Justice of the European Union’s (CJEU) Schrems II opinion (regarding US intelligence laws). The new cross-border data transfer SCCs also use a modular approach to allow for more accurate identification of roles and responsibilities of the contracting parties. In terms of timing, organizations may use the old SCCs in new contracts until September 27, 2021, and contracts existing before September 27, 2021 must change to the new SCCs by December 27, 2022. For additional information on the SCCs, read our K&L Gates EU Data Protection Alert here.

Please do not hesitate to contact the K&L Gates LLP Cybersecurity and Privacy team of attorneys if you need assistance updating new or existing contracts with the new SCCs by the above deadlines.

Get with the program – China’s new privacy laws are coming

Aug 27 2021

By Cameron Abbott and Ella Richards

The People’s Republic of China (PRC) passed the Personal Information Protection Law (PIPL) on Friday the 20th of August 2021. The new privacy regime strengthens the protection around the use and collection of personal data and introduces a new requirement for user consent.

The PIPL, closely resembling the European Union’s General Data Protection Regulation, prevents the personal data of PRC nationals from being transferred to countries with lower standards of data security; a rule that may pose inherent problems for foreign businesses. The PIPL was introduced following an increase in online scamming and individual service price discrimination – where the same service is offered at different prices based on a user’s shopping profile. However, while businesses and some state entities face stronger collection obligations, the PRC state security department will maintain full access to personal data.

Although the final draft of the PIPL is yet to be released, the new law is set to commence on the 1st of November 2021. Companies will face fines of up to 50 million yuan ($7.6 million USD), or 5% percent of their annual turnover if they fail to comply. For an in-depth discussion of the Draft PIPL released in August 2020, see our K&L Gates publication here.

Archive:August 2021