Tag:compliance
Cybersecurity – Overview of Financial Services Initiatives
The disclosures of major security breaches in 2017 such as Verizon, Equifax, Uber, the National Security Agency and the Transportation Safety Administration increased consumer concern about the safety of their personal and financial data. These disclosures also contributed to renewed Congressional analysis of data security standards in the financial services sector and review of current federal and state regulatory regimes. Insider cyber threats have become security remains a threat as well. In August 2017, the Securities and Exchange Commission (“SEC”) announced insider trading charges against seven individuals who gained access to confidential merger and acquisition data through a technology consultant’s misuse of an investment bank’s new computer system. State actions, governmental agencies and the financial services industry are actively combatting the growth of cyber-security threats.
As Hollywood is Flooded with Sexual Misconduct Allegations, Special Task Force of Prosecutors Could Save the Day
In the midst of countless sexual misconduct allegations against some of Hollywood’s most powerful people, on November 9, 2017, Los Angeles District Attorney, Jackie Lacey, issued a statement outlining a plan of action. A special task force of veteran sex crimes prosecutors has been assembled to ensure a “uniformed approach to the legal review and possible prosecution of any case that meets both the legal and factual standards for criminal prosecution.” The Beverly Hills and Los Angeles Police Departments are conducting investigations of the accused as a rapidly increasing volume of sexual misconduct allegations are reported. Law enforcement and the special task force prosecutors are faced with legal and factual difficulties before any sexual misconduct allegations are sufficient for criminal prosecution. The legal elements of the alleged crime, the specific facts of each allegation, the existence of physical evidence, and the remedies available to the victims, are among the many convoluted factors that will dictate the ongoing investigations and prosecution of the allegations that are flooding Hollywood.
The Hazards of an Unregulated Cosmetics Industry
The cosmetics industry, unknown to many, is essentially not regulated by a federal regulatory agency. Cosmetics technically fall under the purview of the Food and Drug Administration (“FDA”), but there are few requirements that manufacturers must comply with. The FDA only requires that manufacturers comply with several labeling regulations so companies can avoid listing a product’s total ingredients, and the FDA does not require manufacturers to report health complaints. The FDA instead relies on direct reports of adverse events from consumers, which has the potential to delay remedying a potentially dangerous situation. A study published in JAMA Internal Medicine found that between 2015 and 2016, the number of complaints of adverse health results related to cosmetic products more than doubled from the previous years. Additionally, the FDA only has the equivalent of six full-time inspectors to monitor three million shipments of cosmetics that come into the United States each year. Last year, inspectors only conducted tests on about 364 of those shipments, and 20 % of those shipment that were inspected led to adverse findings.
Drone Use and Technological Advances in Aviation
Technological advances in aviation have turned what was once a matter of science fiction into reality. With that increase in technology comes a need for regulation of those technologies and their integration into daily lives. In 2016, the Federal Aviation Administration (“FAA”) finalized its first iteration of the rules that would begin to mold how drones are used.
An Overview of Illinois Public Act 100-0538 Compliance with the Hyde Amendment
Illinois Public Act 100-0538, commonly referred to as House Bill 40, was signed into law on September 28, 2017. The Act repeals provisions in existing Illinois laws that aim to make abortion illegal should there be any change to the federal standard. Additionally, the Act lifts a ban on insurance coverage for abortions for low-income individuals enrolled in Medicaid. While enacting House Bill 40 was a win for advocates of reproductive rights in Illinois, the state will still need to comply with federal anti-abortion laws, such as the Hyde Amendment.
The EPA’s Smart Sectors Program
In October 2017, the Environmental Protection Agency (“EPA”) launched the Smart Sectors Program, a program that creates a collaborative partnership between the EPA and regulated sectors such as the automotive, agriculture, and mining industries. The program provides a platform for the EPA and regulated sectors to collectively develop approaches to protect the environment, public health, and the economy.
Appreciating Taxes
After failing to arrive at a consensus on healthcare reform, the Republican party recently passed a blueprint which marked their shift in focus to something less contentious: the American tax code. If the Republicans are successful, compliance with tax regulation in the United States may soon change. An aspect of the code likely to be reformed is how asset appreciation is taxed.
Terminating Ownership Rights: The Past, Present, and Future of an Artist’s Right to Terminate Record Companies’ Ownership
Starting on January 1, 2013, Section 203 of the U.S. Copyright Act of 1976 became a tool for songwriters and musicians to recapture control of their work that was registered with the United States Copyright Office on or after January 1, 1978. Who are they recapturing control from? Record companies. Songwriters own the copyrights in their work, but in making a deal with a record company to publish and promote the work, writers transfer those rights or license the work (only granting certain rights) to the company. Section 203 came into effect in 1977 and specifically concerns music created after 1978. (Music created prior to 1978 is governed by Section 304 of the Copyright Act.) Due to the limitations of Section 203, January 1, 2013, was the first opportunity for artists to terminate ownership of their songs and/or recordings from the record companies that previously owned them. Putting that into perspective, in 2017, artists that created the major hits of the 80’s (think AC/DC, Michael Jackson, and Journey) can file a notice of termination with record labels that were previously granted ownership rights at the time the music was created in an attempt to regain all control of their work. Issues with termination rights have caused quite the battle between record companies and musicians both publicly and privately. Those battles can become more complicated in cases with multiple writers, vague copyright agreements, and the death of musicians. As artists seek to exercise their termination rights, it will be interesting to see if and how the music industry will change.
How Native Advertising is Changing the PR Industry and the Way Corporations Interact with Consumers
Nearly 40% of publishers using native advertising are not compliant with the Federal Trade Commission’s (“FTC”) guidelines; this figure has improved from one year ago, when only 30% of users were following the guidelines. In 2017 alone, the FTC estimates that the revenue generated from native advertising will total $20.9 billion, with an estimated 610 new advertisers each month this number is projected to increase to $59 billion in 2018. The number of corporations using native advertising has increased over the years because of social media platforms like Instagram and Facebook, where much of the in-feed content is paid or sponsored.
Powdered Caffeine – Friend or Foe?
Most Americans consume caffeine regularly. High amounts of caffeine are found in a wide range of drinks including sodas, coffee, and energy drinks. Like most things, caffeine is safe for most people as long as it is consumed in moderation. The dosage size of powdered caffeine has come under scrutiny mostly due to its potency. The Food and Drug Administration has notified powdered caffeine distributors that their products are potentially dangerous to consumers as they have the possibility of causing serious adverse health consequences, including death. The FDA’s notices required powdered caffeine distributors to accurately label and market their products ensuring they are in compliance with the law. Four of the five distributors removed their products from the market following the notices, and the fifth distributor no longer markets to consumers.