Personally Identifiable Information

News & Analysis as of

3rd Circuit Says: FTC Can Take Action Against Companies That Suffer Data Security Breaches

Companies can be fined by the federal government for failing to properly safeguard consumer data, according to a decision this week by Pennsylvania's federal appellate court....more

Third Circuit Not Hospitable to Wyndham, Upholds FTC’s Broad Powers to Regulate Cybersecurity

Over one year ago, our colleague Chris Hart argued that the District of New Jersey court’s decision in FTC v. Wyndham Worldwide Corp. et. al., No. 13-1887-ES, “point[ed] to the possibility that the FTC has potentially broad...more

The IRS Acknowledges Data Breach Worse Than Reported

On August 17, 2015, the Internal Revenue Service (“IRS”) announced that a breach of U.S. taxpayers’ personal information, first disclosed in May, was three times worse than previously thought. While initial reports indicated...more

OPM Breach Update

In response to the massive OPM data breach, the government has been searching for a vendor to provide identity protection services for the almost 22 million individuals affected. Bids were due last week, and the chosen vendor...more

IRS sued in putative class action for lax security

Following the IRS’ admission that its data breach was actually larger than it originally reported and caused fraudulent tax returns to be filed affecting over 330,000 taxpayers, the IRS was sued this week in a proposed class...more

Advertising Law - August 2015 #4

In Case You Missed It: Possible Jail Time for TCPA Violations, Microsoft Gets Slammed With Solicitation Scam Class Action, and 'Do Not Disturb' Technology Gets Pushed on FCC - The world of the Telephone Consumer...more

Three more Darkode Hackers Prosecuted

We previously reported on the prosecutions of Darkode members. Three more members of the computer hacking forum Darkode have pled guilty to accessing protected computers without permission, and for violating the CANSPAM Act....more

A Primer on Russia’s New Data Localization Law

Privacy and data security professionals worldwide should circle September 1 on their calendars, as it’s the day Russia’s new data localization law goes into effect – and possibly generates major waves far beyond Russian...more

Legal Insights on the Ashley Madison Hack: Part II

As more names emerge from the dark web data dump of Ashley Madison customers, lawyers around the globe have found a very willing group of would-be plaintiffs. Interestingly, all of these plaintiffs are named “Doe,” which must...more

Third Circuit Affirms FTC Authority to Police Whether Companies Have Reasonable Data Security

Since at least 2005, the Federal Trade Commission has asserted that it may regulate lax data security practices as an “unfair” business practice under Section 5 of the FTC Act. The Wyndham hotel chain was the first to...more

School Districts and Charter Schools Must Address Student Data Privacy Concerns in Contracts

In working with school districts and charter schools, our firm has learned that many clients may have entered into agreements that lack key contract terms necessary to protect student data privacy. In other cases, we have...more

On the Reidentifiability of Credit Card Metadata

PLA today posts a link to “Unique in the Shopping Mall: On the Reidentifiability of Credit Card Metadata,” which concludes that card transaction data that was anonymized in conventional ways (e.g., by removing names and...more

Legal Insights on the Ashley Madison Hack: Part I

Internet commenters and legal analysts alike are buzzing about the Ashley Madison hack. The website -- which billed itself as a networking site for anyone who wanted to discretely arrange an extramarital affair -- has already...more

FCC Settles First Data Security Enforcement Action

On July 9, 2015, the Federal Communications Commission settled its first data security case with two related telecommunications carriers – TerraCom, Inc. and YourTel America, Inc. – for $3.5 million. The settlement resolves...more

Third Circuit Upholds FTC’s Authority in Wyndham Case

On August 24, 2015, the Third Circuit, in a highly anticipated ruling, upheld a 2014 New Jersey District Court decision that the FTC has authority under section 5 of the FTC Act to regulate “unfair” data security practices...more

Banks’ Class Certification Motion Trumpets Target Data Security Failings, Ignores Impact of Card Association Settlements

Card-issuing banks are forging ahead with their lawsuit against Target arising from the 2013 holiday shopping season data breach. Their July 1 motion for class certification has just been unsealed, allowing a glimpse at...more

Third Circuit Affirms FTC’s Authority Over Companies’ Cybersecurity Practices

In a test of the Federal Trade Commission’s authority to police cybersecurity, the Third Circuit Court of Appeals yesterday ruled that the agency has broad power to take action against private sector companies which fail to...more

Delaware Changes Online, Student Privacy Protection Laws

Four pieces of legislation intended to improve online privacy and protections for Delaware residents were signed into law by Governor Jack Markell on August 7, 2015. Collectively, this legislation will impact a broad range of...more

Target Reaches $67 Million Settlement with Visa over Data Breach Claims

More than a year-and-a-half after Target’s December 2013 announcement of a massive data breach, the retailer has reached an agreement with Visa, whereby it will reimburse Visa and certain affected card issuers up to $67...more

A Guide for Insurers on Creating and Maintaining a Cybersecurity Plan

The intersection of valuable and personally identifiable digitized information and the increasing incidence of cybersecurity breaches makes the creation and maintenance of a cybersecurity plan one of the most pressing...more

New Potential Liability for Data Security: U.S. Court of Appeals for the Third Circuit Announces FTC has Authority to Scrutinize a...

The U.S. Court of Appeals for the Third Circuit announced that the Federal Trade Commission (FTC) has the authority to scrutinize a business’s data security protocol -- and to file a complaint if the FTC finds that protocol...more

EU Privacy Law May Require Individual Third Party Consent for Sale of Customer Email Lists

Parties to transactions involving personal data in Europe are well-advised to investigate whether individual consent or the offer of opt-outs are required to avoid the risk of fines and other sanctions imposed by the DPA or...more

Privacy Tuesday – August 24, 2015 – FTC vs. Wyndham Update

Rather than our usual Privacy Monday “bits and bytes,” we have a breaking story relating to the ongoing Wyndham/FTC saga. Today, Wyndham Worldwide Corp. lost a critical round in the Third Circuit. Anticipated since...more

Web.com Suffers Data Breach Affecting 93,000 Customers

The list of companies hit by cyber-attacks continues to grow.  This time, Florida-based web hosting company, Web.com, has announced that it suffered a data breach that may have compromised credit card information and other...more

Summary of California Appellate Decisions -August 2015

Insurance; Duty To Defend; Insurance Coverage; Intentional Acts; Sexual Misconduct - Gonzalez v. Fire Insurance Exchange (2015) 234 Cal.App.4th 1220, 184 Cal.Rptr.3d 394 (WL 960927) - Facts: This is an...more

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