Danielle McNamara Senior Editor Loyola University Chicago School of Law, JD 2023 In July 2022, former Twitter board member Peiter Zatko filed a complaint against Twitter, alleging that the social media platform failed to develop a security system consistent with the Federal Trade Commission’s (FTC) requirement to implement a comprehensive information-security program, established in 2011. …
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While Exchange-Traded Funds (ETFs) were introduced in the early 1990’s, the investment product skyrocketed in popularity throughout the 2000’s. In fact, only one ETF existed in 1993 before the market subsequently expanded to 102 funds in 2002, and then to 1,000 funds by 2009. There currently exists more than 7,602 ETFs globally, and their popularity among investors has prompted the creation of numerous other Exchange-Traded Products (ETPs). While ETFs are the most prominent form of ETPs, fund issuers have introduced a myriad of products that vary in terms of volatility, complexity, and investor suitability. Hence, regulators and financial professionals have continued to warn the investing public of the risks involved with purchasing complex ETPs, such as single-stock ETFs, without sufficiently understanding how the products operate.
Voters have been questioning the credibility of elections since former President Donald Trump instilled fear in his supporters by alleging that votes were stolen in the 2020 election. Additionally, Democratic voters have become increasingly wary of voter suppression in Republican counties. As the United States midterm elections approach this year, the Department of Justice (DOJ) will be deploying stringent measures to ensure that counties and states are in compliance with fair voting practices.
It’s no secret that companies like Google, Alpha, Meta, and Twitter use and sell our data. However, in recent years, the content that companies display to us while we use their platform, from the ads we see to the websites that we find on search engines, has become a major contentious issue. While Section 230 of the 1996 Communications Decency Act shields Big Tech and other online platforms from liability for user-generated content, the Supreme Court recently announced that it will hear Gonzalez v. Google. The outcome of this case could have a huge impact on tech policy and could fundamentally change the type of content that we see online.
In an effort to improve cybersecurity in the healthcare sector, a bipartisan bill was introduced in Congress on September 13, 2022, by Republican Brian Fitzpatrick of Pennsylvania and Democrat Jason Crow of Colorado. The Healthcare Cybersecurity Act relies on a partnership between the Cybersecurity and Infrastructure Security Agency (CISA) and the Department of Health and Human Services (HHS) to work together in improving cybersecurity in the healthcare sector. The Act has been introduced as a result of record high increases in health data breaches across the country over the last several years. The goal is to provide resources for training and heighten efforts taken across the nation to mitigate cybersecurity risk. The Act would not only improve patient care but save healthcare cost by taking a proactive approach.
In 2019, the U.S. Securities and Exchange Commission (SEC) adopted Regulation Best Interest (“Reg BI”). Reg BI is a standard of conduct that applies to broker-dealers (a firm in the business of selling securities) and persons associated with broker-dealers when making a recommendation of a certain investment strategy or securities transaction to a retail customer. The SEC gave broker-dealers a time window to implement this new law into firm policies and procedures, and while no regulatory action happened in the first few years of its enactment, the SEC brought its first action in June of this year and FINRA brought its first in October of this year. This makes it especially important for broker-dealer firms to ensure they are presently in compliance with the standards set forth in Reg BI.
On October 11, 2022, the Supreme Court began to hear the case of National Pork Producers Council v. Ross. The issue of this case stems from Proposition 12, a 2018 ballot revision to existing California law that banned the sale of “whole pork meat from animals confined in a manner inconsistent with California standards.” The National Pork Producers Council and the American Farm Bureau Federation (both referred to as “the Council”) argue that Proposition 12 violates the Dormant Commerce Clause and has reached the Supreme Court on this issue.
On Monday, October 3, the Supreme Court began its new term by hearing a case concerning the rights of property owners and the interests of the Environmental Protection Agency’s (EPA) Clean Water Act. When Michael and Chantell Sackett purchased land in Idaho in 2004, they did so with the intention of building a home on the property. Their plans were quashed when the EPA stepped in and declared that the land the couple purchased constituted a wetland, subject to regulation under the EPA’s Clean Water Act because the land is located 300 feet from a large lake. The Court is now faced with the question; how far can the government regulate water in the United States? Additionally, what counts as ‘waters of the United States”? Although the Court is not expected to make a decision regarding this case until June of 2023, the repercussions of the court siding with the Sacketts could be detrimental.
A privacy class action that first exploded in September of this year highlights consumers suing a handful of companies for violating the federal Video Privacy Protection Act. The multitude of class actions hold the Meta Platforms Inc’s Pixel tracking tool accountable for the tracking of consumer data from online platforms. News outlets, sports organizations, and streaming services are all facing lawsuits related the alleged complaints.
The 2008 financial collapse occurred when banks began substantially increasing access to debt in the form of adjustable-rate mortgages. These types of mortgages allowed borrowers to take out home loans at an intertest rate that would increase over time. This meant that more borrowers could afford the initial mortgage payments but would end up defaulting on the loans when their adjustable interest rates kicked in. The banks then packaged these high-risk loans together and sold them as securities to mutual funds, investment banks, and pension funds. When most of these high-risk loans defaulted, the market crashed. The collapse occurred in part because the housing market lacked the regulations needed to deter this kind of high-risk lending. The recession that followed cost thousands of jobs, homes, and retirement accounts.