Tag Archives: Luke Dembosky

Post-Election Law Privacy Law Prospects

by Jeremy Feigelson, Avi Gesser, Jim Pastore, Frank Colleluori, Mengyi Xu, Jeffrey Cunard, Luke Dembosky, and Tigist Kassahun

California voters have approved the new California Privacy Rights Act (“CPRA”). The margin was 56% – 44% – comfortable, if significantly tighter than pre-election polling that showed CPRA winning in a landslide. That comes on the heels of the California Attorney General’s release of still more proposed amendments to the regulations for the existing California Consumer Privacy Act (“CCPA”). Below we sum up these important changes emerging from Sacramento. We also note some possible Election Day impacts on the privacy law reforms that have been percolating in Washington, D.C.

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Cybersecurity Requirements for Insurance Companies – The NYDFS Rules as the Emerging Standard

by Luke Dembosky, Avi Gesser, and AJ Salomon

As we have discussed in recent webinars and blog posts, the New York Department of Financial Services has recently brought its first enforcement action under its cybersecurity rules (23 N.Y.C.R.R. Part 500).  When the NYDFS cyber rules were first enacted in 2017, they were widely regarded as the most comprehensive cybersecurity regulation in the United States. Almost all insurance companies that are licensed to do business in New York state were required to comply, leading to speculation that Part 500 would eventually emerge as the cybersecurity standard for insurance companies nationwide. Three years later, that appears to be the case.

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Updating the Safeguards Rule: FTC Touts Proposed Changes at Virtual Workshop

by Luke Dembosky, Jeremy Feigelson, Avi Gesser, Jim Pastore, Suchita Mandavilli Brundage, and Marissa MacAneney

On July 13, 2020, the Federal Trade Commission (“FTC”) hosted a virtual workshop on its proposed changes to the Standards for Safeguarding Customer Information (“Safeguards Rule”). The workshop followed up on the FTC’s 2019 notice of proposed rulemaking requesting public comment on its proposal to amend the Safeguards Rule.

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First Enforcement Action by New York DFS Under Its Cyber Rules Shows Where Companies Face Regulatory Risk – Six Quick Takeaways

by Luke Dembosky, Jeremy Feigelson, Avi Gesser, Jim Pastore, Lisa Zornberg, Zila Reyes Acosta-Grimes, Michael Bloom,  Christopher S. Ford, and Mengyi Xu

The New York State Department of Financial Services (“DFS”) issued a Statement of Charges and Notice of Hearing (PDF: 278 KB) (the “Charges”) on July 21, 2020 against First American Title Insurance Company (“First American”) for multiple violations of the DFS Part 500 Cybersecurity Regulation (PDF: 97.4 KB) (the “Regulation”), including:

    • Failure to perform an adequate risk assessment
    • Failure to maintain proper access controls
    • Failure to provide adequate security training for cybersecurity employees
    • Failure to encrypt certain nonpublic information

The Charges carry potential penalties of up to $1,000 per violation, and in its press release, the DFS asserts that each instance of nonpublic information that was accessed by an unauthorized person constitutes a separate violation. The Charges allege that hundreds of millions of documents were at risk, more than 350,000 documents were accessed without authorization, and a sample of 1,000 documents found that 30% contained nonpublic information.

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Schrems II: Privacy Shield Invalid and Severe Challenges for Standard Contractual Clauses

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Yesterday, the Court of Justice of the European Union (CJEU), the EU’s highest court, invalidated the EU-U.S. Privacy Shield for cross-border transfers of personal data.  The CJEU’s decision also cast significant doubts over whether companies can continue to use the European Commission-approved Standard Contractual Clauses (SCCs) to transfer EU personal data to the U.S., or to other jurisdictions with similarly broad surveillance regimes.  The CJEU’s lengthy decision is here and its short-form press release is here (PDF: 319.62 KB).

What does this mean for organizations that rely on Privacy Shield or SCCs?  History suggests that privacy enforcement authorities in the EU may hold their fire while efforts are made to come up with a replacement system for data transfers.  EU authorities hopefully will clarify their enforcement intentions soon.  In any event, organizations that have relied on Privacy Shield will have to turn immediately to considering what practical alternatives they might adopt.  U.S. government authorities will also have to turn to the knotty question of what data transfer mechanisms might ever satisfy the CJEU, given persistent EU concerns about U.S. government surveillance of personal data.

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Preparing for and Responding to Ransomware Attacks: Thirteen Lessons from the NIST Framework and Recent Events

by Luke Dembosky, Avi Gesser, H Jacqueline Brehmer, Robert Maddox, Dr. Friedrich Popp, and Mengyi Xu

Ransomware attacks continue to plague businesses across the globe. As companies enhance their defenses, attackers increase the sophistication of their software and its deployment. Ransomware attacks used to be limited to the locking of a company’s computer system by encryption software and a demand to pay in order to obtain the key, but not anymore.

In early June 2020, for example, the REvil ransomware group auctioned off three databases containing approximately 22,000 stolen files that were associated with a Canadian agricultural firm, for a starting price of $50,000, after the victim refused or failed to pay the ransom. This sale reflects a growing trend of ransomware attacks that includes theft of sensitive company data, along with the usual locking up of computer systems, as a means of amplifying the pressure on victim entities. As a result, companies that have operational backup systems, and therefore do not need to pay the ransom to get access to their data, may still consider paying in order to prevent the public release of their stolen confidential information.

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CCPA Regulations Submitted to the California Office of Administrative Law for Publication

by Jeffrey P. Cunard, Luke Dembosky, Jeremy Feigelson, and Avi Gesser

It looks like the California Attorney General’s implementing regulations for the California Consumer Privacy Act (“CCPA”) are, finally, final. On June 1, 2020, the California Attorney General submitted for publication the final proposed regulations.

The California Office of Administrative Law now has 30 working days, plus an additional 60 calendar days under an Executive Order issued in connection with the COVID-19 pandemic, to review and approve the regulations. This means the regulations may not take effect until October 1, 2020. The California Attorney General has requested expedited review in hopes that the regulations can be published by July 1, 2020. Continue reading →

Can Contact Tracing Apps Help Get Many of Us Back to Work Soon? A Framework for Evaluating the Various Options and Legal Concerns

By Luke Dembosky, Jeremy Feigelson, Avi Gesser, Jim Pastore, Anna R. Gressel, Joshua B. Pickar, Suchita Mandavilli Brundage, and Samantha B. Singh

Each passing week of lockdown brings mounting economic and social costs, increasing the urgency to find ways to get more people back to work safely. A large part of that effort involves the development of contact tracing applications (“apps”) for mobile phones. These apps promise to allow low-risk individuals to return to some normal activities in the near term while continuing to isolate those with higher risks. But they also present cybersecurity and privacy concerns, as well as other potential legal issues, which we discuss below. Continue reading →

Debevoise Coronavirus Checklists—Cybersecurity

by Luke Dembosky, Jeremy Feigelson, Avi Gesser, Jim Pastore, Lisa Zornberg, Tricia Bozyk Sherno, Hilary Davidson, and Christopher S. Ford

As companies dust off their Business Continuity Plans to prepare for possible disruptions and remote working due to COVID-19, here are 10 cybersecurity considerations to add to the list of preparations: Continue reading →

Fifteen Ways to Reduce Regulatory and Reputational Risks for Your AI-Powered Applications – Lessons from Recent Court Decisions and Regulatory Activity

by Avi Gesser, Henry Lebowitz, Jeffrey P. Cunard, Jim Pastore, Lisa Zornberg, Luke Dembosky, Anna R. Gressel, and Steve Tegrar

It is only February, but, so far, 2020 looks like it is going to be the year that courts and regulators look seriously at artificial intelligence (“AI”).

Recent developments in both Europe and the United States provide some insight into where AI is likely to face tough scrutiny and ways to mitigate risks of using AI. Continue reading →