Federal Trade Commission: Who is Protecting Your Personal Information in the Digital Age

Libby Meadows Associate Editor Loyola University Chicago School of Law, JD 2021  As our society evolves over to a more digital world, it is important to take a step back and review what we are putting online. Recently, data breaches have become a common occurrence in our day-to-day lives. In 2016, personal information from about …
Read more

Updates to the Caremark Standard

In re Caremark International Inc. Derivative Litigation was a landmark Delaware case that changed the way what is expected out of a board of directors, and how they are in turn able to run a corporation. In 2019, Delaware courts brought Caremark to meet modern day duty of care standards in the cases of In re Clovis Oncology, Inc. Derivative Litigation and Marchand v. Barnhill.

Section 1071: Hold for Commentary or Lost During a Trump Administration?

As a part of the large and cumbersome Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), Section 1071 was enacted to amend the Equal Credit Opportunity Act (15 U.S.C. 1691 et. seq.)  to impose data collecting requirements on financial institutions. Pursuant to Section 1071 (the “Rule”), financial institutions are required to compile, maintain, and submit to the Consumer Financial Protection Bureau (“CFPB”) certain information concerning credit applications by women-owned, minority-owned, and small businesses. The Rule was not slated to go into effect until the CFPB issues necessary implementing regulations. Unfortunately, nearly 8.5 years later, there is still no guidance. Consumers and financial institutions alike are at a sort of standstill, unclear on the contours of its reporting requirements. In November of 2019, the CFPB published a letter to financial institutions promising to develop rules “expeditiously;” the CFPB later hosted an information-gathering symposium on the Rule, yet there is still no clear guidance.

FDA Finalizes Enforcement Policy Against Vaping

Amid the epidemic levels of youth use of e-cigarettes, the U.S. Food and Drug Administration, released a policy on January 2, 2020, requiring enforcement against certain unauthorized flavored e-cigarette products that appeal to kids. According to the policy, the FDA intends to prioritize enforcement against fruit and mint flavored, cartridge-based electronic nicotine delivery system (“ENDS”). The FDA looks to regulate all ENDS products that manufactures have failed to make safe for use, as well as any ENDS product marketed for use by minors. The 2019 National Youth Tobacco Survey (“NYTS”), a survey conducted annually by the FDA in conjunction with the Centers for Disease Control and Prevention, shows approximately 1.6 million youths were using ENDS products frequently, with nearly one million using e-cigarettes daily. The FDA’s enforcement policy is not a “ban” on flavored cartridges. If a company can demonstrate to the FDA that a specific product meets the applicable standard set forth by Congress, including considerations on how the marketing of the product may affect youth initiation and use, then the FDA could authorize that product for sale.

Emerging Risks Associated with AI and Machine Learning

Today the healthcare industry is being transformed using the latest technology to meet the challenges it is facing in the 21st century. Technology helps healthcare organizations meet growing demands and deliver better patient care by operating more efficiently. As the world population continues to grow and age, artificial intelligence (AI) and machine learning will offer new and better ways to identify the disease and improve patient care.

Ending Use of Seclusion Rooms in Illinois Schools

An article published on November 19, 2019 by ProPublica Illinois and the Chicago Tribune has alerted Illinois lawmakers, parents, and school personnel of the widespread use of seclusion rooms for isolated timeouts. The use of these rooms, which has now been halted by the Illinois State Board of Education (“ISBE”) and Governor J.B. Pritzker, has been legal in Illinois for over twenty years. The students who are most frequently placed in these rooms have an emotional, behavioral, or intellectual disability, and special education advocates are calling for an end to this practice. These rooms were introduced as a legally-sanctioned separation method to prevent students from harming themselves or others, but the investigative article found that students are often unlawfully placed in these rooms for minor behavioral infractions. The report also found that parents and school administrators did not have knowledge of the full scope of isolated time-out use for their students.

Illinois Amends the Cannabis Act. How Does This Affect Employers?

On June 25, 2019 Illinois Governor JB Pritzker signed the Illinois Cannabis Regulation and Tax Act, “The Cannabis Act” which legalized recreational cannabis beginning January 1, 2020 for adults aged 21 years and older. Illinois residents are permitted to possess 30 grams of cannabis flower, 5 grams of cannabis concentrate, and 500 milligrams of THC contained in a cannabis-infused product. The possession limits are to be considered cumulative. The legalization of adult-use marijuana for recreational purposes in Illinois does not modify the state’s medical cannabis pilot program.

Facing Facial Recognition Technology

In March 2019, Senator Brian Schatz and Senator Roy Blunt introduced a bill to Congress designed to provide oversight for facial recognition technology, known as the Commercial Facial Recognition Privacy Act. If passed, this law could change the way Americans deal with privacy.

How has the SEC’s Approach to Emerging Fintech Technologies Developed?

This October, the Securities and Exchange Commission filed an emergency action and obtained a temporary restraining order in the United States District Court for the Southern District of New York against two offshore entities, Telegram Group Inc. and its wholly-owned subsidiary, TON Issuer Inc. The SEC’s complaint asserted that the two offshore entities were conducting an unregistered offering of securities in the form of digital tokens in the United States and overseas, raising $1.7 billion to finance the businesses, including the development of its own blockchain the “Telegram Open Network” or “TON Blockchain.”

CMS Modernizing the Physician Self-Referral and Anti-Kickback Regulations

On October 9, 2019, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule to modernize and clarify the regulations that interpret the Medicare physician self-referral law (often called the “Stark Law”), which has not been significantly updated since it was enacted in 1989. As CMS tries to reconstruct the healthcare field, it is imperative for compliance programs to prepare for the changes in regulations to come. The following discussion provides a brief overview of the proposed changes but is not an exhaustive list of all rulemakings related to the physician self-referral law.