Discerning Data

AI Regulation in the U.K. — New Government Approach

On July 18, 2022, the U.K. Government published a paper on its proposals for AI regulation “Establishing a pro-innovation approach to regulating AI” (the AI Paper). This was published alongside the Government’s AI Action Plan, the first update provided since the Government published its National AI Strategy in September 2021.

The AI Paper provides for an alternative approach to AI regulation in the U.K. when compared with the recently proposed draft legislation for AI regulation in the EU (the EU AI Act). The U.K. Government favours a more decentralised and less regimented approach: guidance, rather than legislation; sector-based, rather than cross-sector application; regulated at sector level, rather than centrally; and with a looser definition of what constitutes AI for the purposes of regulatory application. This is intended to make the U.K. an attractive environment for AI innovation, with more flexible and pragmatic regulation, although AI businesses operating in multiple sectors will potentially need to review and comply with more than one set of principles and address conflicts between them.

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What Is the Information Blocking Rule? – Faegre Drinker on Law and Technology Podcast

Want to better understand what the Office of the National Coordinator for Health IT’s (ONC) Information Blocking Rule (IBR) is, how it works and why we need it? In this episode of the Faegre Drinker on Law and Technology Podcast, host Jason G. Weiss sits down with Faegre Drinker partners Jeff Ganiban and Doriann Cain, and associate Alex Eschenroeder to discuss all things IBR.

Expected in September 2022, the final draft of the HHS Office of Inspector General’s (OIG) first IBR enforcement rule is aimed at two of the three actor types defined in the IBR: Health IT Developers of Certified Health IT and Health Information Networks / Health Information Exchanges. Under the Cures Act, each IBR violation by a Health IT Developer of Certified Health IT or Health Information Network / Health Information Exchange would be subject to penalties of up to $1 million. The expected rule will establish how the OIG intends to assess and enforce these penalties. (Unfortunately, there is still no guidance on when we can expect a rule regarding the penalties that will apply to IBR violations by Health Care Providers.)

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FTC Signals Intention to Move Forward to Adopt New Privacy Rules in the Absence of Federal Legislation

The Federal Trade Commission (FTC), on a split party vote on August 11, approved an Advanced Notice of Proposed Rulemaking (the Notice) that focuses on potential new rules and requirements that could apply to entities engaged in targeted advertising or other forms of personal information gathering and sharing. Once this Notice is published in the Federal Register, the public will have 60 days to comment on the merits of the proposed new rules. There is also a public forum on the Notice slated to take place on September 8. The FTC’s action comes on the heels of legislative attempts to codify federal privacy protections that have yet to come to fruition.

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Discussion on the Dangers of Wire Transfer Fraud Cyberattacks – Faegre Drinker on Law and Technology Podcast

Wire transfer fraud cyberattacks: they cost U.S. businesses billions of dollars each year, but you can take action to minimize your risk. In this episode of the Faegre Drinker on Law and Technology Podcast, host Jason G. Weiss talks with intellectual property Partner Ken Dort about this cyber threat also known as business email compromise attacks. They discuss how wire fraud happens, who’s at risk for these attacks, and the complicated process of recovering losses after hackers hit an organization. Jason and Ken also talk through the steps businesses can take now to reduce their risk of wire fraud down the road.

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Ransomware Payments Become an Even Riskier Choice Amidst the Ever-Growing Sanctions List

In February 2022, Executive Order 14024 highlighted that Russia’s invasion of Ukraine threatened not only Ukraine but also the national security and foreign policy of the United States. Pursuant to this executive order, and in the face of national security concerns, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) has instituted extensive sanctions, including both economic and trade sanctions. Also, in response to the national security concerns, the Cybersecurity and Infrastructure Security Agency (CISA) issued a Shields Up notice, urging companies to bolster their cybersecurity to protect themselves against the threat of a cyberattack.

As the conflict between Russia and Ukraine continues, the threat of a cyberattack, specifically ransomware and NotPetya-style attacks, remains top of mind. However, as entities continue to bolster their cybersecurity and protect themselves against these attacks, they should be cognizant of the implications that OFAC sanctions may have in connection with such an attack.

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