Privacy & Security
TikTok continues to rise in popularity, though their history of complaints and lawsuits paints a different picture. On February 27, 2019 the Federal Trade Commission (FTC) settled with TikTok for $5.7 million in response to a child privacy complaint. This settlement was the largest civil penalty obtained for a child privacy complaint, prompting TikTok to take corrective action by hiring compliance focused employees. Consumer groups now argue that TikTok has failed to make such changes and continues to “flout the law”. In response to national security concerns, President Trump signed an executive order on August 6, 2020 effectively banning the application in the U.S.
Yet another privacy and data security-related lawsuit has been filed against Zoom Video Communications, Inc. (“Zoom Inc.”). Zoom Inc. has been the subject of several complaints related to its video-conferencing service since its meteoric and spectacular rise in popularity due to the Coronavirus pandemic and related quarantine measures beginning in March 2020. In this particular case, there are compliance lessons to be learned from the unfair and deceptive practices claims alleged against Zoom Inc. in the plaintiff’s D.C. Superior Court filing.
Within the last decade, data has surpassed oil as the world’s most valuable commodity. Earlier this year the Securities and Exchange Commission (SEC) released its observations made during audits that detailed the methods used by corporations to secure their data. This included the kinds of cybersecurity practices employed by companies as well as advice on how to better deal with sensitive data and protect against potential cyberattacks. The SEC’s observations coincide with a recent announcement from the National Security Agency (NSA) that showcases an increased concern surrounding cybersecurity in the corporate world.
The California Attorney General’s office released an updated draft to the California Consumer Privacy Act (CCPA) on February 10th. This updated draft follows the four public hearings that were held in December of 2019 and over 1,700 pages of submitted comments. Comments are being heard as of the posting of this article, and if no new changes are made, a final rulemaking record will be submitted.
In March 2019, Rush University Medical Center (“Rush University”) sent out breach notification letters to approximately 45,000 patients. The letter advises patients that a privacy incident occurred that may have involved the patients’ personal information. The privacy incident was caused by an employee of a third-party financial services vendor. The employee released a file that contained patient information to an unauthorized person. According to the breach notification letter, law enforcement and regulatory officials were involved in the investigation of the privacy incident. Rush University sent the breach notification letter in compliance with the Health Insurance Portability and Accountability Act’s privacy and security rules.
Ever since the Facebook and Cambridge Analytica scandal, concerns surrounding data privacy and protection have been growing. Both government agencies and individual users have particularly been concerned on how their data is being collected and used on social media websites such as Facebook. Germany has taken action in response to such concerns and recently took a step against Facebook’s collection of data in a decision that outlawed Facebook’s entire advertisement regime.
New data privacy regulations entail questioning both current and future technologies. Recently, Amazon has introduced a store concept that eliminates everyone’s least favorite things about shopping, long lines and small talk. Amazon Go is the grocery store of the future and these stores allow consumers to walk in, pick up the items that they need, and then walk right back out. That’s it. No long lines, no cashiers, no shopping carts. However, as great as this concept seems, there are still concerns from a data privacy standpoint as Amazon needs to collect personal data from its consumers in order to be able to lawfully execute these checkout-less stores.
In the age of digitization, data seems less secure than ever. Public companies constantly attempt to safeguard both personal and financial data, yet their efforts fail due to new outbreaks of malicious encryption viruses and persistent email phishing attempts. Data breaches and cyber fraud carry severe financial implications for public companies who fall victim to these types of attacks. But a new Securities and Exchange Commission (SEC) report says that public companies that are easy targets of cyber scams could also be in violation of federal securities laws and accounting regulations that call for firms to safeguard their assets. Although the SEC has issued its warning to public companies about the compliance and financial risks posed by cyber fraud, many companies are still struggling to implement effective protections against newly-evolved forms of cyber-attacks.
On September 7, 2017, the credit bureau Equifax announced a giant security breach affecting the personal information of approximately 143 million US consumers, as well as thousands of consumers overseas. With numerous lawsuits piling up against the company and almost half of our nation’s population at a significant increased risk of identity theft, Americans are left wondering why this happened, how it could have been prevented, and what will become of Equifax and our credit reporting systems.
According to data from HHS’ Office of Civil Rights (OCR), healthcare data breaches in 2017 are set to outpace those from 2016. Security experts have determined this increase is due to two factors: getting entry into a system has become easier, and organizations are now more inclined to report breaches. Yet despite the increase in data breaches and the costs of settling with HHS OCR, a majority of healthcare organizations are still only spending 1-6% of their budgets on cybersecurity measures.