Duane Morris TechLaw

September 20, 2019September 20, 2019 by Duane Morris

Amendments to the CCPA Ready for Governor’s Signature

By: Michelle Hon Donovan, Brandi Taylor and Angelica Zabanal

Last Friday, September 13, 2019, marked the final day for the California Legislature to vote to pass amendments intended to clarify the terms and scope of the California Consumer Privacy Act (CCPA), which takes effect on January 1, 2020. The bills are now on Governor Gavin Newsom’s desk for approval, and the Governor will have until October 13, 2019, to sign or veto them.

Of the CCPA amendment bills that were in consideration, the following were passed:

AB 25, regarding employee exemption
AB 874, regarding the definition of PI (personal information)
AB 1146, regarding warranty and vehicle repairs
AB 1355, regarding the B2B exemption and other clarifying amendments
AB 1564, regarding toll-free telephone number exception

Also of note, AB 1130 – a bill that does not specifically amend CCPA – also passed. This bill expands the categories of PI covered by California’s data breach notification laws, which will now include tax identification numbers, passport numbers, military identification numbers and unique identification numbers issued on a government document, as well as certain types of specified unique biometric data. This expansion is anticipated to impact liability under the CCPA’s private right of action

While not an exhaustive list of the bills that stalled during the legislative process, the following bills of note failed to be passed by the legislature:

AB 873, regarding the definition of de-identified
AB 846, regarding customer loyalty programs
AB 981, regarding exemption for certain insurance transactions

While the approved amendments did not significantly overhaul the CCPA, several notable changes were made. Please see our Alert for a detailed discussion of these changes.

September 12, 2019 by Eric J. Sinrod

Your Smartphone: Friend or Foe?

Wherever we go these days, whether at work, at home, in restaurants, outside, or practically anywhere else, people reflexively go to their smartphones constantly.

Why? Because those little handheld devices can accomplish so much. We can send communications across various platforms, conduct business tasks, check on the news, shop, participate in social media, listen to music, watch videos, and the list goes on and on. Continue reading “Your Smartphone: Friend or Foe?”

August 28, 2019August 28, 2019 by Eric J. Sinrod

Staying Ahead of Rampant Cyber-Attacks

Since the advent of the most rudimentary technology, criminal activity has followed. And in more recent times, the internet certainly has been no stranger to criminal enterprises. Indeed, governmental entities, companies and individuals are falling victim to all sorts of cyber-crimes on a constant basis. A look at just one criminal target drives home the rampant nature of online attacks.

Brace yourself for this – the City of London Corporation suffered almost one million cyber-attacks monthly for the first quarter of 2019, based on information obtained by Centrify as reported by info security-magazine.com. That indisputably is a phenomenal number of attacks on the local authority which oversees capital housing for a good portion of the financial center in London. Continue reading “Staying Ahead of Rampant Cyber-Attacks”

July 23, 2019July 23, 2019 by Duane Morris

California Consumer Privacy Act (“CCPA”) Amendments One Step Closer to Passage

By Angelica A. Zabanal

When the California Consumer Privacy Act (“CCPA”) was passed last year, it was generally acknowledged that the CCPA would need to be clarified prior to its January 1, 2020, implementation. A variety of CCPA amendments are now one step closer to full passage.

Last month, the California Senate Judiciary Committee passed seven amendment bills to the California Consumer Privacy Act (“CCPA”). The bills are now headed to the Committee on Appropriations for a vote. Any bills amended by the Senate will need to return to the Assembly for a vote and a possible reconciliation. Lawmakers have until September 13, 2019 to vote on these CCPA amendments, which are summarized in their current form below:

B. 25 (regarding Employee Exception): Amends the CCPA so that it excludes the collection of personal information (“PI”) from job applicants, employees, business owners, directors, officers, medical staff, or contractors, who would not be considered as “consumers” under the CCPA. Now amended to weaken the employee exception with a sunset exemption on January 1, 2021 and negating the exemption as it pertains to the CCPA’s notice and data breach liability provisions;
B. 846 (regarding Customer Loyalty Programs): Excludes application of certain prohibitions in the CCPA to loyalty or rewards programs. Now amended to prohibit a business from selling consumer PI that was collected as part of a loyalty, reward, discount, premium features, or club card program;
B. 1202 (regarding Data Brokers): Requires data brokers to register with the California Attorney General. Now amended to exclude language that would have provided consumers the right to opt-out of the sale of their personal information by data brokers;
B. 1564 (regarding Disclosure Methods): Requires businesses to provide consumers with two methods for the submission of privacy requests, including a toll-free telephone number at a minimum. Excludes smaller online companies from the toll-free number and allows these companies to provide an email address for submitting privacy requests;
B. 1146 (regarding Warranty and Vehicle Repairs): Exempts vehicle information retained or shared for purposes of a warranty or recall-related vehicle repair. Now amended to provide a clearer description of vehicle recalls;
B. 874 (regarding “Publicly Available” Information): Expands definition of “publicly available” to include information that is lawfully made available from federal, state, or local government records. Amends definition of “personal information” to exclude de-identified or aggregate consumer information. (Approved by the Judiciary Committee without amendments);
B. 1355 (regarding Opt-In Clarification): Exempts de-identified or aggregate consumer information from the definition of PI. Also clarifies that consumers over 13 years of age but younger than 16 years of age are required to opt in. Furthermore, parents need to authorize consent only for consumers under 13 years of age. (Approved by the Judiciary Committee without amendments.)

Stay tuned for more updates from Duane Morris LLP regarding the advancement of these CCPA amendments and join us for our CCPA webinar series.

July 18, 2019July 23, 2019 by Duane Morris

Sandra Jeskie Discusses Alexa in Legaltech News

Duane Morris partner Sandra Jeskie was quoted in Legaltech News in an article titled “Amazon Risks Legal Gray Area by Indefinitely Holding Alexa Recordings.” Sandra discussed privacy policies and data retention with the Alexa device.

Please visit Legaltech News to read the full text (subscription required).

July 8, 2019July 8, 2019 by Duane Morris

What Trends Are Shaping Blockchain In The Legal Industry? 7 Experts Share Their Insights

Photo of attorney Daniel Tarr — Daniel Tarr

Nobody should feel smarter than their lawyer. Whether you’re on death row or in a corporate boardroom, legal counsel should provide you with peace of mind. This becomes impossible with one sniff of incompetence or uselessness.

The need for relevancy will drive blockchain adoption in the legal industry. As customers learn how blockchain (and smart contracts in particular) improve security, they may seek out lawyers who understand it too.

[…]

“The biggest trend that will shape blockchain use and adoption in the legal industry is the increased use of artificial intelligence in the legal industry. The rise of AI solutions and products to assist in contract drafting, litigation, and other legal services will require the use of secure tracking and storage systems that can be directly integrated with the AI solutions. Blockchain is well positioned to fulfill that requirement.”

To read the full text of this article quoting Duane Morris attorney Daniel Tarr, please visit the Disruptor Daily website.

June 26, 2019June 26, 2019 by Eric J. Sinrod

FBI Warns of Cybercrimes Targeting Seniors

World Elder Abuse Awareness Day took place last week on June 15. This Awareness Day highlights how older populations are vulnerable to various forms of fraud and seeks to promote education and strategies to prevent the elderly from being victims of deception.

At the federal level here in the United States, the Elder Abuse Prevention and Prosecution Act was enacted in 2017, and the Department of Justice brought forth the Elder Justice Initiative. The purpose of the Initiative is to provide a platform for the DOJ “to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors,” according to an FBI press release. As a consequence, the FBI “has prioritized [its] efforts to address elder fraud.”

Regional initiatives to protect the elderly have been introduced in the United States as well. For example, the Phoenix Field Office of the FBI is seeking to create greater knowledge about “cyber scams targeting the elderly in Arizona” in recognition of World Elder Abuse Day, as stated in the FBI press release.

Top Crimes Against Seniors

As part of creating greater awareness, the press release points out that residents over the age of 60 make up most of the cybercrime victims in Arizona in 2018 and accounted for the majority of adjusted losses in that year, citing statistics from the FBI Internet Crime Complaint Center. Continue reading “FBI Warns of Cybercrimes Targeting Seniors”

June 11, 2019June 26, 2019 by Eric J. Sinrod

Another State Passes Law to Protect Consumer Data

States are taking online consumer protection into their own hands given a perceived lack of sufficient protection at the federal level. Maine now has jumped in.

Indeed, Janet Mills, the Governor of Maine, just signed into law arguably one of the strongest privacy bills in the country. This law, called the Act to Protect the Privacy of Online Consumer Information and which goes into effect on July 1, prohibits internet service providers from using, selling, or distributing data from consumers without obtaining their consent. And, according to The Hill, this new state law bars internet service providers from refusing to serve consumers, penalizing consumers or offering them discounts to seek to gain their permission to sell their data.

Consumer Affairs and Privacy

This bold step by Maine follows in the footsteps of California, a state which passed a complicated online privacy law last year. That law has been both applauded by privacy activists and criticized in certain respects by the tech industry.

At first blush, the new Maine law may be even more robust than the California law. The Maine law is opt-in in nature, requiring explicit consent from consumers before internet service providers can sell their data. The California law is opt-out in effect, making consumers affirmatively request that their data not be sold. Continue reading “Another State Passes Law to Protect Consumer Data”