Earlier this month, accompanying an update to a rule prohibiting the impersonation of businesses and governments, the FTC sought comments on extending the rule to prohibit impersonation of individuals. The agency indicated that it is considering expanding the rule as the result of rising complaints around “impersonation fraud,” especially those generated by AI. Comments are due by April 30, 2024.Continue Reading FTC Seeks Comments on AI Impersonation Rules

Sheppard Mullin is pleased to announce the creation of its new Privacy Law Resource Center to help companies navigate the increasing complexity of privacy and data security laws. We know that companies are struggling to keep track of and address the myriad global obligations that may affect them. These tools are aimed to help.Continue Reading Sheppard Mullin Creates Privacy Law Resource Center

In its first major overhaul since 2014, the National Institute of Standards and Technology (NIST) updated its Cybersecurity Framework (CSF) on February 26, 2024. The updated 27-page CSF version 2.0 builds on version 1.1 and provides guidance to industry, government agencies, and other organizations on how to manage cybersecurity risks. While voluntary, the CSF has been a popular compliance resource within the private sector, both domestically and internationally, and has increasingly appeared in state and federal regulations as well as federal grants and grant incentive programs. The revised guidance, therefore, potentially has significant implications for organizations managing cybersecurity risks.Continue Reading NIST Expands Cybersecurity Framework with Release of Version 2.0

From the expansion of “general privacy” laws in US states and concerns over cross-border data transfers, to global focus on artificial intelligence, surveillance and dark patterns, 2023 was a busy year. Our privacy team tracked these developments and more during 2023, and we have put together this complete resource that includes our summaries of all of the privacy law developments from 2023.Continue Reading Privacy Day 2024: A Look Back at Developments from 2023

The Department of Defense published a much-anticipated Proposed Rule at the end of last year for its Cybersecurity Maturity Model Certification program. The proposed rule is our first comprehensive look at the latest iteration of the CMMC program (referred to as CMMC 2.0), which will become effective once final changes are made to DoD regulations for contractors. The program attempts to streamline the various DoD cybersecurity requirements and provide greater flexibility in the certification process.Continue Reading Defense Department Outlines Its Future Cybersecurity Program

The FTC recently announced a settlement with Global Tel*Link, a telecommunications company that contracts with prisons and jails to provide communication services to incarcerated individuals and their families. Those who use their services create accounts with the company and are required to provide not only usernames and passwords but also Social Security numbers and government ID numbers. The company also collects financial account information as well as names and addresses. The company included in its marketing materials promises about security, including that it was the “cornerstone of what we do.” The company also made promises about its security in RFPs to prisons and jails.Continue Reading FTC Decision with Global Tel*Link Signals Expectations for Use of Testing Environments

Biden’s sweeping AI Executive Order sought to have artificial intelligence used in accordance with eight underlying principles. The order, while directed to government agencies, will impact businesses as well. In particular, the order has privacy and cybersecurity impacts on companies’ use of artificial intelligence. Among other things, companies should keep in mind the following:Continue Reading What Is the Privacy Impact of the White House AI Order for Businesses?

The French Data Protection Authority announced a €600,000 fine against Groupe Canal+ over concerns with the media company’s direct marketing activities. According to the CNIL, the company sent users email marketing without getting consent, in violation of both GDPR and French privacy law. In particular, the CNIL noted, the company sent marketing emails to individuals who had provided their personal information not to Canal+, but instead to one of its partners. When doing so, they were not told by the partner that the information would be share with -and used by- Canal+ for Canal+’s marketing activities. Canal+ should have ensured that the partners had gotten appropriate consent, according to the CNIL.Continue Reading CNIL Fines Canal+ Over Marketing and Data Security Concerns

The FTC’s second attempt to pursue the data broker, Kochava, continues to move forward. The amended complaint, which was just unsealed and thus available for the public to review, gives insight into the agency’s perspective on the harm that results when companies create profiles with sensitive information, and use that information to target ads to individuals. The amended complaint provides more detail about Kochava’s alleged practices; allegations the company strongly disagreed with. (Thus, why it sought -unsuccessfully- to have it sealed.)Continue Reading Amended Kochava Complaint Gives Insight into FTC’s View of Harm from Data Profiles

The SEC has now finalized its much anticipated rules for public companies’ cybersecurity disclosures. The final rules, published this month, require disclosure of certain cybersecurity incidents much sooner than under many other breach notification regimes. Additionally, the final rules require new periodic disclosures about a company’s processes to assess, identify, and manage material cybersecurity risks and about the roles of management and the board of directors in managing or overseeing those cybersecurity risks. These new requirements vary from the SEC’s prior (2018) guidance, and unlike in the past, are now codified under the Securities Exchange Act of 1934 and the Securities Act of 1933.Continue Reading SEC Gives Finality on Cybersecurity Disclosures for Public Companies

The CPPA, the California regulatory body charged with enforcing CCPA, has now issued draft regulations on risk assessments and cybersecurity audits. The draft was released ahead of a public board meeting to discuss those topics (among other things).Continue Reading What Do the CPPA’s Draft Regulations on Risk Assessments and Cybersecurity Audits Mean for Companies?