Cyber Law Watch – Page 2 – Insight on how cyber risk is being mitigated and managed across the globe

FTC Issues First Order Prohibiting Sale of Sensitive Location Data

Jan 19 2024

By Eric F. Vicente Flores and Whitney E. McCollum

On 9 January, 2024, the Federal Trade Commission (FTC) issued its first settlement prohibiting a data broker from sharing or selling sensitive location data, and required deletion of all location data collected deceptively. The FTC alleged that X-Mode Social (“X-Mode”), and Outlogic, LLC (“Outlogic”), X-Mode’s successor firm, failed to implement reasonable and appropriate safeguards on the use of such information by third parties. X-Mode/Outlogic collected personal information, including location data via its mobile applications, which it would then sell to third parties.

FTC Bans Rite Aid from Using AI Facial Recognition Without Reasonable Safeguards

Jan 02 2024

By Whitney E. McCollum and Eric F. Vicente Flores

The Federal Trade Commission (FTC) issued a first-of-its-kind proposed order prohibiting Rite Aid Corporation from using facial recognition technology for surveillance purposes for five years.

The FTC alleged that Rite Aid’s facial recognition technology generated thousands of false-positive matches that incorrectly indicated a consumer matched the identity of an individual who was suspected or accused of wrongdoing. The FTC alleged that false-positive matches were more likely to occur in Rite Aid stores located in “plurality-Black” “plurality-Asian” and “plurality-Latino” areas. Additionally, Rite Aid allegedly failed to take reasonable measures to prevent harm to consumers when deploying its facial recognition technology. Reasonable measures include: inquiring about the accuracy of its technology before using it; preventing the use of low-quality images; training or overseeing employees tasked with operating the facial recognition technology; and implementing procedures for tracking the rate of false positive matches.

Provisional Political Agreement on Landmark AI Regulation in Europe

Dec 14 2023

By Giovanni Campi, Petr Bartoš, and Kathleen Keating

In a landmark development, EU lawmakers reached on 8 December 2023 a provisional political agreement on the Artificial Intelligence Act (AI Act). Once adopted, this regulation will be the first of its kind, and could set a global standard for AI laws around the world.

UK’s top Websites Receive Cookie Warnings from the Information Commissioner

Dec 07 2023

By Claude-Étienne Armingaud and Sophie Verstraeten

The UK’s Information Commissioner (the “ICO”) has recently sent warnings to the UK’s most visited websites to inform them that they may face enforcement action if they do not make changes to their cookie banner to ensure compliance with UK data protection law. For example, some websites warned by the ICO do not provide their user with a fair choice on tracking for personalised advertising. This position aligns with the EU’s stance, noting France (see prior Alert here).

California Privacy Protection Agency Proposes Draft Rules for Automated Decision Making, Including Artificial Intelligence

Dec 07 2023

By Eric Vicente Flores and Michael Stortz

Executive Summary: The California Privacy Protection Agency has proposed a new set of draft regulations that aim to regulate the use of artificial intelligence and automated decision making technology. These regulations will be discussed alongside other draft regulations the agency has previously proposed regarding risk assessments and cybersecurity assessments. The three sets of draft regulations will be discussed at the agency’s meeting on 8 December.

Australia’s Privacy Framework set to be Revamped Following the Government’s Response to the Privacy Act Review Report

Oct 13 2023

By: Cameron Abbott, Rob Pulham, Stephanie Mayhew,and Maddy Bassal

Last week the federal Government released its response (the Response) to the recommendations proposed by the AGD’s Privacy Act Review Report released in February 2023 (the Report).

California Proposes Cybersecurity Requirements for Businesses

Oct 11 2023

By: Eric Vicente Flores, Avril Love, and Whitney McCollum

In recognition of Cybersecurity Awareness Month in the US, we will be bringing awareness to relevant 2023 cybersecurity updates each week.

On 28 August, the California Privacy Protection Agency (CPPA) published draft regulations regarding risk assessments and cybersecurity audits for consideration at the Board’s September meeting. The draft regulations precede the formal rulemaking process, but provide insight into CPPA’s current priorities.

China Will Issue Safe Harbor Rules to Facilitate Cross-Border Data Flow

Oct 05 2023

By Amigo L. Xie and Dan Wu

On 28 September 2023, the Cyberspace Administration of China (CAC) released draft Provisions on Regulating and Facilitating Cross-Border Data Flow (in Chinese) for a public comment period ending on 15 October 2023.¹