Privacy & Information Security Law Blog

On February 11, 2010, the plenary of the European Parliament rejected by a vote of 378 to 196 the agreement reached in 2009 between the EU and the U.S. to allow access by U.S. law enforcement authorities to the payment database of the financial consortium SWIFT.  The agreement had been negotiated between the EU Council of Ministers and the European Commission with the U.S. government to allow continued access to the database, a mirror copy of which had been moved by SWIFT from the U.S. to Europe.  With the Lisbon Treaty’s entry into force, the Parliament gained new powers to approve measures affecting law enforcement and civil liberties, and a number of members of the Parliament have expressed concern regarding the level of data protection provided for in the agreement.  According to news reports, several top U.S. government officials (including Secretary of State Hillary Rodham Clinton and Treasury Secretary Timothy Geithner) had been lobbying the European Parliament to approve the agreement, on the grounds that it was essential to fight terrorism in both the U.S. and Europe.

On February 1, 2010, it became compulsory for randomly selected passengers at Heathrow and Manchester airports in the UK to pass through full body scanners before boarding their flights.  This enhanced security screening has been implemented following the attempted Christmas Day terrorist attack at the Detroit airport in the United States, after which the British government announced that it would begin mandatory body scanning at all UK airports.  The move has raised concerns about the excessive collection of personal data.

On February 5, 2010, the European Commission adopted a new set of standard contractual clauses (“SCCs”) for transfers of personal data from data controllers in the EU to data processors outside the EU.  View the European Commission press release.

Cloud computing raises complex legal issues related to privacy and information security.  As legislators and regulators around the world grapple with the privacy and data security implications of cloud computing, companies seeking to implement cloud-based solutions should closely monitor this rapidly evolving legal landscape for developments.  In an article published on February 3, 2010, Lisa Sotto, Bridget Treacy and Melinda McLellan explore U.S. and EU legal requirements applicable to data stored by cloud providers, and highlight some of the risks associated with the use ...

Pursuant to a public complaint, on January 27, 2010, the Privacy Commissioner of Canada announced a new investigation into Facebook.  The investigation concerns the social networking site’s introduction of a tool that required its users to review their privacy settings in December 2009.  According to the complaint, Facebook’s new default settings allegedly made some users’ information more accessible than previously had been the case.  Elizabeth Denham, the Assistant Privacy Commissioner, indicated “[s]ome Facebook users are disappointed by certain changes being ...

On January 29, 2009, the German Federal Network Agency (the “Agency”) stated in a press release that it has imposed fines for unauthorized telephone advertising in six cases.  This brings the total to nine procedures (resulting in €500,000 in fines) during the months of December 2009 and January 2010, and marks the first time the Agency has imposed sanctions for violations of the prohibition on unauthorized telephone advertising and for breach of the caller ID requirement for marketing calls.

The Federal Trade Commission’s second “Exploring Privacy” roundtable concluded Thursday, January 28, 2010.  The roundtable did not provide many firm conclusions, but it did help further refine some hard issues facing privacy protection.

Although Thursday’s hearing was intended to be devoted to technology issues, the role of regulation appeared to dominate the discussions.  “Everyone is dying to talk about regulation,” said Jessica Rich, Deputy Director of the Bureau of Consumer Protection, moderating a panel on Technology and Policy.

On January 25, 2010, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 10-06, Guidance on Blogs and Social Networking Web Sites (the “Guidance”) for securities firms, investment advisors and brokers.  FINRA, which is the largest non-governmental financial regulator, previously had issued guidance on other issues pertaining to interactive web sites, such as participation by securities firms and their employees in Internet chat rooms discussing stocks or investments.  The goals of the Guidance are to “ensure that—as the use of social media sites increases over time—investors are protected from false or misleading claims and representations” as well as “to interpret [the] rules in a flexible manner to allow firms to communicate with clients and investors using” blogs and social networking.

On January 19, 2010, Information and Privacy Commissioner David Loukidelis resigned to accept the post of Deputy Attorney General of British Columbia.  Mr. Paul Fraser, the Conflict of Interest Commissioner, has been named interim Commissioner.  The appointment of a permanent successor is expected in the spring when the British Columbia legislature reconvenes.  
 
View the Commissioner Loukidelis' letter of resignation. 

Microsoft is urging Congress and the information technology industry to act now to ensure that cloud computing is guided by an international commitment to privacy, security and transparency for consumers, businesses and government.  A survey commissioned by Microsoft found that while the general population and senior business leaders are excited about the potential of cloud computing, most are concerned about the security, access and privacy of their information in the cloud and believe the government should establish laws, rules and policies for cloud computing.  Microsoft ...