The White House recently released its Blueprint for an AI Bill of Rights in an effort to guide the discussion on the design, use and deployment of AI in systems that impact the American public. The Blueprint outlines the following five guiding principles:
Elfin Noce is an associate in the Intellectual Property Practice Group in the firm's Washington, D.C. office. He also is a member of the Privacy and Cybersecurity Team.
NYDFS’s $4.5 Million EyeMed Cyber Settlement Reminder To Industry
In a recent settlement with the New York Department of Financial Services, EyeMed Vision Care LLC agreed to pay a $4.5 million penalty and undertake remedial measures to increase its cybersecurity. This includes undertaking an action plan based on a comprehensive risk assessment, subject to the review and approval of NYFSD.…
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Implications of SEC’s Scrutiny of Data Use Representations
The SEC’s enforcement action with a leading seller of market data (App Annie Inc.) signals its concern with misleading data use representations. While the data at issue was not “personally identifiable” information, but instead corporate confidential information, the SEC’s concerns mirrored those that we have previously seen from that agency, as well as others, regarding representations made about personal information.
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Connecticut Enacts New Cybersecurity Safe Harbor
Connecticut recently enacted cybersecurity legislation that provides a safe harbor for businesses that implement a written cybersecurity program. Under the legislation, set to go in effect on October 1, 2021, punitive damages will not be assessed on a business that has suffered a data breach, in the event that there are causes of action alleging a failure to implement reasonable cybersecurity controls, which failure resulted in the breach.
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NYDFS Issues Supply Chain Management Guidance
NYDFS Issues Supply Chain Management Guidance
The New York State Department of Financial Services recently issued recommendations to financial institutions in the aftermath of the SolarWinds cyberattack. In that attack, hackers inserted malware into SolarWinds software which was then distributed to SolarWinds’ customers (many of which were financial institutions). After discovery, SolarWinds released a series of hot fixes to address vulnerabilities in their software associated with the attack. Although NYDFS found that most companies responded quickly to patch the vulnerabilities, it did identify additional steps to reduce supply chain risk:…
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What Does the Fifth Circuit’s Vacating of HHS HIPAA Fines Mean for Companies This Year?
Will HHS’ approach for imposing penalties in the aftermath of a data breach become a little clearer in 2021? This is a distinct possibility in the wake of a Fifth Circuit decision vacating penalties against MD Anderson Cancer Center. The hospital suffered three data breaches, leading HHS to impose over $4 million in civil penalties. That fine was reversed recently by the Fifth Circuit as arbitrary, capricious, and contrary to law.
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FTC Settles Over Alleged Failure to Manage Service Providers
The FTC recently settled with Ascension Data & Analytics for failure to oversee service providers. Ascension provides services to mortgage companies within its corporate family of entities. According to the complaint, Ascension uses third parties to provide some of its services. One of those, OpticsML, had access to tax returns for approximately 60,000 customers. OpticsML stored the information on a cloud-based server which server was publicly accessible for a year. During that time the tax documents were accessed by unauthorized individuals. The originating IP addresses were in Russia and China. Although the security incident was that of OpticsML, the FTC alleged that Ascension violated the Gramm-Leach-Bliley Act’s Safeguards Rule. Namely, the company failed to properly oversee its service providers and it failed to adequately assess risk. In particular, the FTC alleged that:…
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FTC Settles with Travel Services Provider Over Security Issues
Alleging unfair and deceptive practices in violation of the FTC Act, the FTC recently entered into a settlement agreement with SkyMed International, Inc. The company sells travel emergency plans to individuals who sustain medical emergencies or injuries while traveling internationally, and has signed up -according to the FTC- thousands of consumers. During the sign-up process individuals provided the company with sensitive health information.
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NIST Finalizes Guidance on Security and Privacy Control Baselines – SP 800-53B
NIST has now finalized its guidance providing important information on selecting both security and privacy control baselines for the Federal Government. The guidance is available here: Special Publication 800-53B, Control Baselines for Information Systems and Organizations. As we previously discussed when the draft version was released, these control baselines are from NIST Special Publication 800-53, and have been moved to this separate publication as a consolidated catalog of privacy and security controls. While the implementation of a minimum set of controls is required for protecting federal information systems, NIST envisions that these control baselines can be implemented by any organization that processes, stores, or transmits information.
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Israel Follows Europe’s Lead on Privacy Shield
Israel’s Privacy Protection Authority recently announced that Privacy Shield can no longer be relied on for data transfers between Israel and the United States. Israel did not have a direct Privacy Shield arrangement with the U.S., instead permitting the many Israeli companies that exchange data with their American counterparts to rely on a provision of its Privacy Protection Regulations that allows for transfers of data to any country that receives data from the EU under the same terms of such transfer.
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NIST Issues Long-Awaited Final Guidance on Security and Privacy Controls – SP 800-53
After many years of being in draft form, NIST recently released its final version of Revision 5 of Special Publication 800-53, Security and Privacy Controls for Information Systems and Organizations to address a need for a more proactive and systematic approach to cybersecurity. With the release of Revision 5, NIST hopes to provide updated security and privacy controls that will make information systems more penetration resistant, limit damages from cyber-attacks, make systems more cyber-resilient, and protect individuals’ privacy. NIST intends this update to be usable by a more diverse set of consumer groups than previous iterations of the document permitted.
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