Interactive Counsel Newsletter: Privacy Report: FBI Issues Updated Ransomware Guidance

Arent Fox
Contact

Arent Fox

Federal US News

FBI Issues Updated Ransomware Guidance

A recent report from New Zealand-based cybersecurity firm Emsisoft has revealed the extent to which ransomware is being used in cyberattacks in the United States. The first 9 months of 2019 have seen 621 ransomware attacks on government entities, health care organizations, and educational institutions. The recent attacks have prompted the FBI’s Internet Crime Complaint Center (IC3) to update its advice on ransomware.

The FBI has long maintained the view that paying a ransom is never advisable. The attackers may not hold valid keys to unlock the encryption or may choose not to supply them and issue further demands after an initial payment is made. That said, the latest ransomware guidance has seen the FBI slightly soften its stance on paying ransoms, saying “the FBI understands that when businesses are faced with an inability to function, executives will evaluate all options to protect their shareholders, employees, and customers.”

What the recent attacks have clearly demonstrated is essential:

  • Ensuring that valid backups of all critical data are made to keep attacked entities’ options open. It is no use creating backups and storing them on networked devices, as those backups are likely to also be encrypted.
  • Creating multiple backup copies with at least one backup copy being stored on a non-networked device that is not connected to the internet.
  • Testing backups to make sure files can be recovered in the event of a disaster. If backups are corrupted, paying the ransom may be the only option.

FTC Workshop Aims to Inform Potential COPPA Updates

Much of the focus at the FTC’s “Future of the COPPA Rule” workshop focused on the misconceptions surrounding the rule. FTC Commissioner Noah Joshua Phillips offered remarks on what he’d like to see come from any potential amendments, namely the balancing act between children's privacy without sacrificing the flourishing of technology and innovation. He also spoke on what he views as a misinterpreted scope of the law—while many are arguing for amendments that would include more stringent provisions on privacy, Phillips views COPPA's intent as one that protects children from online harms unrelated to data collection or advertising. Phillips used education technology as an example of why there should be careful consideration of any potential changes.

Many have decried edtech vendor’s collection and retention of data, but Phillips said those tools support children's development while aiding teachers and parents in educating children. “Just because we are talking about privacy and just because we are talking about kids, more regulation is not necessarily better, including for kids,” Phillips said. “COPPA is all about empowering parents and protecting kids. You should keep that in mind.” Additionally, the FTC extended the deadline to submit comments from October 23 to December 9.

FTC Challenges Bogus Influencer Metrics

Devumi, LLC and its owner and CEO, German Calas, Jr., have agreed to settle the FTC’s first-ever complaint challenging the sale of fake indicators of social media influence, which are important metrics that businesses and individuals use in making hiring, investing, purchasing, licensing, and viewing decisions. According to the FTC’s complaint, now-defunct Devumi, used their websites Devumi.com, TwitterBoost.co, Buyview.co, and Buyplans.co to sell fake indicators of social media influence, including fake followers, subscribers, views, and likes to users of social media platforms, including LinkedIn, Twitter, YouTube, Pinterest, Vine, and SoundCloud.

The FTC alleges the defendants sold fake Twitter followers to actors, athletes, musicians, writers, and others who wanted to increase their appeal as online influencers. The FTC alleges that Devumi also sold fake Twitter followers to motivational speakers, law firm partners, investment professionals, and others who wanted to boost their credibility to potential clients. According to the FTC, Devumi filled more than 58,000 orders for fake Twitter followers, enabling the buyers to deceive potential clients about their social media influence.

The FTC contends that the defendants thereby enabled their customers to deceive both potential viewers and potential music purchasers. By selling and distributing fake indicators of social media influence to users of various social media platforms, the FTC alleges the defendants provided their customers with the means and instrumentalities to commit deceptive acts or practices, which is itself a deceptive act or practice in violation of the FTC Act. The proposed court order settling the FTC’s charges contains both conduct and monetary provisions. It imposes a monetary judgment against German Calas, Jr. of $2.5 million, the amount that the FTC alleges he was paid by Devumi or its parent company. The order specifies that upon payment of $250,000, the remainder of the judgment will be suspended. If Mr. Calas is later found to have misrepresented his financial condition to the FTC, the entire judgment immediately will become due.

State US News

CCPA Could Cost Companies Total of $55 Billion to Get in Compliance

According to an economic impact assessment prepared for the state attorney general’s office by an independent research firm, California’s new privacy law could cost companies a total of up to $55 billion in initial compliance costs.

The review, released publicly by California’s Department of Finance, provided a broad range for the potential costs companies could face to become and stay compliant with the CCPA. On the low end, the researchers estimated that firms with fewer than 20 employees might have to pay around $50,000 at the outset to become compliant. On the high end, firms with more than 500 employees would pay an average of $2 million in initial costs.

The $55 billion researchers estimated companies will initially pay to become compliant is equivalent to about 1.8% of California’s Gross State Product in 2018. In addition, total compliance costs for all companies subject to the law could range from $467 million to more than $16 billion over the next decade, according to the report.

Advocate Behind the CCPA Announces Second, More Expansive Ballot Initiative

On September 24, 2019, the privacy advocate and real estate investor who initially qualified the California Consumer Privacy Act (CCPA) for the November 2018 ballot, Alastair Mactaggart, announced that he would seek to qualify a new consumer privacy initiative for California’s November 2020 ballot.

This 2020 measure comes on the heels of two years of intense legislative negotiation over the meaning and breadth of the CCPA, widely regarded as the strongest privacy protection law in the US Mactaggart reportedly spent over $3 million of his own money to qualify the original CCPA for the ballot in 2018, but ultimately withdrew the measure after reaching a compromise with legislative leaders and the Brown administration to enact the CCPA legislatively last summer. Mactaggart discussed his new proposal—referred to as the California Privacy Rights and Enforcement Act of 2020—at an industry conference this morning.

Describing the measure as “new rights in response to new technology,” Mactaggart said the measure would ensure consumers greater control over “sensitive personal information” such as race, health, sexual orientation, and geolocation data than is provided under current law. He expects broad opposition from the business community, but expresses poll-driven optimism that the new measure will be adopted by California’s voters. If approved, the new measure is to take effect on January 1, 2021.

Critics Say AG’s Proposed CCPA Regulations Add Confusion

At a surprise news conference, California Attorney General Xavier Becerra stood with nine members of his staff touting the proposed regulations as a victory. “Though they are to be made public today, these proposed regulations have taken a year to get to this point,” Becerra said. “And they reflect changes from the legislature up until last month and feedback from the public during four public forums in the last year.”

At a high level, the regulations focus on four specific areas of the CCPA:

  • Restoring choice
  • Restoring control
  • Restoring transparency
  • Fostering innovation

Some of those tasked with complying with the CCPA or helping their clients do not agree that the document is a win. Several attorneys have commented that the regulations confuse more than they clarify, creating additional ambiguities and burdens for businesses.

EU News

United States and United Kingdom Sign First Bilateral Executive Agreement Under the CLOUD Act

The United States and the United Kingdom entered into the world’s first-ever CLOUD Act Agreement that will allow American and British law enforcement agencies, with appropriate authorization, to demand electronic data regarding serious crime, including terrorism, child sexual abuse, and cybercrime, directly from tech companies based in the other country, without legal barriers. Under its terms, law enforcement, when armed with appropriate court authorization, may go directly to tech companies based in the other country to access electronic data, rather than going through governments.

New Model Adopted by German Data Protection Authorities Conference for Calculating GDPR Fines

The DSK is the joint coordination body of the German data protection authorities. It has recently set out a new model for calculating EU General Data Protection Regulation fines, which, if adopted and applied, is likely to lead to high GDPR fines, more frequently at the top end of the maximum fine limits under Article 83.

Some German authorities have started applying this new model in practice; for example, the Berlin data protection commissioner has already announced her intention to impose multimillion GDPR fines based on this model. Some of the first cases defending clients against fines calculated under this new model are being heard. The largely linear calculation method, starting with revenue, leads to serious penalty risks, especially for companies and groups with high turnover.

Asia News

China Releases Its Version of COPPA

China has released its own version of the US Children’s Online Privacy Protection Act (COPPA). The Cyberspace Administration of China released the final version of the “Measures on Online Protection of Children’s Personal Data,” effective October 1. The measures provide further clarity on how to protect children’s personal data online under the framework of China's Cyber Security Law.

Not only do the measures have a broader application than COPPA — they apply to any collection, storage, processing, transfer and disclosure of personal data of children under 14 and do not look at whether a website is direct to children — but these measures also include prescriptive requirements on management measures to safeguard children’s personal data, including appointing a dedicated person to protect children’s personal data.

Future updates/clarifications are expected. At this time, it seems as though foreign websites operators and online service operators that target children in China may also be subject to the measures.

Other Global News

IAPP Releases Updated Privacy Vendor Report

The IAPP has released the latest version of its 2019 Privacy Tech Vendor Report. Since the report’s last iteration earlier this year, 48 new vendors have entered the marketplace. The IAPP Tech Vendor Report now has more than 250 vendors listed in its pages. The report also covers the recent major investments made in the privacy tech space over the past 12 months as venture capitalists and angel funders turn their eyes toward the market and the demand for privacy tech services continues to increase.

How Uber, eBay, and Pitney Bowes Built Principles-Based Global Privacy Programs

At the IAPP’s recent Privacy. Security. Risk 2019 conference, a panel of in-house privacy professionals discussed ways that businesses can globalize their privacy programs, based on their first-hand experiences. The program featured Derek Care, director, privacy at Uber; Raymond Umerley, vice president and chief data protection officer at Pitney Bowes; and Aaron Weller, strategic privacy advisor at eBay.

One of the panelists outlined 11 important steps that organizations can follow to develop and implement an effective privacy program:

  • Governance and oversight
  • Personal information inventory
  • Accountability supported by documentation
  • Risk assessments
  • Implement reasonable security measures
  • Develop clear externally facing privacy notices
  • Enable individuals to exercise control over their data
  • Implement privacy by design and by default
  • Vendor management
  • Incident response

Written by:

Arent Fox
Contact
more
less

Arent Fox on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.