In this Issue:
In the Courts
• California Supreme Court Announces State Law Prohibits Marketing Requests for ZIP Codes
• Suit Filed Against Apple for Alleged Privacy Violations Arising from Applications
Heard on the Hill
• Senate Judiciary Committee Holds Hearing on Targeting Sites Dedicated to Stealing American Intellectual Property
• House Armed Services Subcommittee Convenes Hearing on Cybersecurity
Around the Agencies
• “In-App” Purchases Draw Congressional and Regulatory Attention
In the Courts
California Supreme Court Announces State Law Prohibits Marketing
Requests for ZIP Codes
In a case with major implications for retailers and marketers, the Supreme Court of California ruled on February 10, 2011, that the state’s Song Beverly Credit Card Act of 1971 (“Song-Beverly Act”) prohibits businesses from requesting and recording ZIP codes from consumers prior to credit card transactions, including requests for use in marketing. Pineda v. Williams-Sonoma Stores, Inc., S178241 (Cal., Feb. 10, 2011). Numerous other states have laws similar to California’s that regulate merchant practices with respect to collecting and recording personal information in connection with a credit card purchase....
Suit Filed Against Apple for Alleged Privacy Violations Arising from Applications
Four lawsuits, at present count, have been filed against Apple and some of its application (“app”) developers alleging violations of the Computer Fraud and Abuse Act, the Electronic Communications Privacy Act, and state statutes based on app functionalities that shared consumers’ personal information with advertisers. The lawsuits commenced after the Wall Street Journal published an article in mid-December detailing the results of tests of 101 popular smartphone apps for iPhone and Android phones, which claimed that 56 of the apps tested transmitted the phone’s Unique Device Identifier (“UDID”) to third parties. Allegedly, some apps transmitted information such as age and gender in addition to the UDID....
Heard on the Hill
Senate Judiciary Committee Holds Hearing on Targeting Sites Dedicated to Stealing American Intellectual Property
On February 16, 2011, the Senate Committee on the Judiciary (“Committee”) held a full Committee hearing focusing on websites dedicated to unlawfully infringing U.S. intellectual property (“IP”). The 111th Congress had previously considered this issue through the vehicle of the Combating Online Infringement and Counterfeits Act (“COICA”). At the end of last year, the full Committee had voted 19-0 in favor of COICA, as amended by a Manager’s Amendment....
House Armed Services Subcommittee Convenes Hearing on Cybersecurity
The House Armed Services Subcommittee on Emerging Threats and Capabilities (“Subcommittee”) convened its first hearing of the 112th Congress on February 11, 2011, to examine the role of the Department of Defense (“DoD”) in cyberspace. Subcommittee Chairman Thornberry (R-TX) noted that the Subcommittee’s new name underscored its focus on ensuring that the United States is prepared to deal with emerging threats (e.g., cyber threats) and nurturing capabilities to address these threats....
Around the Agencies
“In-App” Purchases Draw Congressional and Regulatory Attention
Representative Markey (D-MA) sent a letter to the Federal Trade Commission (“FTC”) on February 8, 2011 regarding the privacy implications of mobile applications (“apps”) and referencing an article published in the Washington Post on the same day about “in-app purchases” by children.....
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