Delaware Amends Data Breach Notification Law

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Delaware recently amended its data breach notification laws through House Bill 180, which now expands the definition of breach and personal information. It is now among 14 states to impose explicit data security obligations on businesses. While revisions to the law are in some ways more stringent, they are also more balanced by including a risk of harm requirement.

Under the amended law, which will go into effect on April 14, 2018, the definition of breach has been expanded to include not only unauthorized acquisition, but also disclosure of electronic or paper files, media, databases or other data.  The law also broadens the scope of personal information to include user name or email address, in combination with a password or security question, and answer medical information, and unique biometric data.

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DC Circuit Deepens Circuit Split on Data Breach Class Standing

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***09/06/17 UPDATE***

On Wednesday, September 6, the DC Circuit Court of Appeals granted an unopposed motion to stay its decision that reversed a district court order dismissing a potential class action arising from a 2014 data breach Chantal Attias et al. v. CareFirst Inc. et al., case number 16-7108.  The order stays the mandate until December 7, 2017.

***ORIGINAL POST***

Last month, a three-judge panel on the United States Court of Appeals for the District of Columbia unanimously reversed a district court order dismissing a potential class action arising from a 2014 data breach,  Chantal Attias et al. v. CareFirst Inc. et al., case number 16-7108.  In reversing that order, the court permitted a health insurance company’s customers to proceed against that carrier, CareFirst, which serves one million customers in the District of Columbia, Maryland and Virginia.
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“Do What You Say and Say What You Do” — The FTC’s Settlement with Uber

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  • Settlement reaffirms the importance for companies to deliver on to the privacy and security promises made to consumers
  • Settlement is yet another reminder of one of the most important components of good data security – controlling access to sensitive information.

The Federal Trade Commission (“FTC”) announced, subject final approval after a 30-day comment period, a consent order with Uber Technologies (“Uber”) settling allegations that Uber misrepresented the extent to which it monitored its employees’ access to personal information about users and drivers and that it took reasonable steps to secure such information.  The consent agreement does not contain monetary penalties, but does prohibit Uber from misrepresenting its privacy and security practices and requires that Uber establish a comprehensive privacy program that includes an independent third-party audit every two years for the next 20 years. The FTC’s complaint highlights practices that the FTC finds fail to provide reasonable security when utilizing the services of a third-party could storage service, Amazon Web Services (“AWS”).

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Fact Sheet: NYDFS Cyber Regulations

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The New York Department of Financial Services’ Cyber Requirements for Financial Services Companies, 23 NYCRR 500 (“Cyber Regulations”) went into effect on March 1, 2017. The Cyber Regulations are intended to require financial companies to assess their internal cybersecurity risks and develop a cybersecurity program to protect customer information and their IT systems, as well as respond, recover, and report cyber threats. The Cyber Regulations establish a comprehensive set of proactive cybersecurity standards for companies to follow, involving everything from appointing a designated Chief Information Security Officer (CISO) to submitting an annual compliance notice, and conducting penetration testing and vulnerability assessments.

Here is an overview of some key terms, requirements and deadlines under these new regulations.

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Beyond FERPA: Safeguarding Student Data Is Key Obligation for Postsecondary Educational Institutions

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Most institutions of higher education are very familiar with the Family Educational Rights Protection Act (FERPA), which applies to all state and local, public and private educational institutions that receive federal funds through programs administered by the U.S. Department of Education (ED). Unless at least one of FERPA’s exceptions applies, institutions risk sanctions from ED – including the potential loss of all federal funding – if they disclose a student’s personally identifiable information (PII) from an education record without the student’s express prior written consent.  Beyond FERPA, higher education institutions have additional legal responsibilities to assiduously secure and protect student data from inadvertent disclosure, particularly financial information maintained by an institution regarding students or their families.

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OCR Responds to Rise in Health Care Cyberattacks

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After recent WannaCry ransomware and Petya/notPetya malware attacks exposed the data security vulnerabilities of health care organizations and pharmaceutical companies globally, the Department of Health and Human Services and Office for Civil Rights have rolled out resources to prevent future attacks. The OCR’s resources, such as its Quick-Response Checklist, infographic and informational newsletter, are meant to support health care organizations every step of the way, from planning and contingency plans to response and mitigation procedures.

We’ve outlined some of the key points in the OCR and HHS documents in this recent alert.

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