FTC Settlement with Zoom Concerning Alleged Data-Security Lapses

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On November 9, 2020, the United States Federal Trade Commission (FTC) announced that it had entered into a consent agreement, subject to final approval, with videoconferencing company Zoom Video Communications, Inc. (Zoom). The consent agreement settles allegations that Zoom engaged in a series of deceptive and unfair practices that undermined the security of its users. The Commission voted 3–2 to accept the settlement, with Commissioners Chopra and Slaughter voting no and issuing dissenting statements asserting that the FTC’s action did not go far enough.

While the FTC generally does not identify what triggers a law enforcement action, there have been many news articles and a number of class actions filed in connection with Zoom’s data-security practices over the past six months that likely led to this action.

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As CCPA Pressure Heats Up, Here’s What Should Be on Your Summer To-Do List

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Despite the business disruptions brought on by the novel coronavirus, enforcement of the California Consumer Privacy Act (CCPA) is still set to begin on July 1. With that key date just around the corner and companies facing a new slate of COVID-19-related privacy issues, we cover the high-level action items California businesses should address to help get their compliance programs up to speed.

For the full alert, visit the Faegre Drinker website.

COVID-19 Consumer Data Protection Act of 2020 Seeks to Regulate Collection, Use of Geolocation, Personal Health Information

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Contact tracing is recognized by health systems and governments as an effective method to identify individuals an infected person may have exposed to disease in order to notify those individuals and take action to prevent further spread of illness. Traditionally, the accuracy of contact tracing has been dependent upon an individual’s memory of (and willingness to disclose) where they have been and with whom they have been in contact in order to track down other people who may have been infected. Connected devices with geolocation capabilities allow for digital tracking of individuals, but also carries significant privacy issues.

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CCPA Revised Regulations

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California’s Attorney General recently released revised draft regulations for the California Consumer Privacy Act (CCPA). Comments to the revisions are currently accepted through February 25, 2020.

Read the update to see the changes, with key additions and deletions highlighted.

FTC Opinion Holds False Express Privacy Claims are Material

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The Federal Trade Commission’s Opinion finding that Cambridge Analytica engaged in deceptive practices to harvest personal information closes another chapter in the Commission’s actions against Cambridge Analytica and its former chief executive and app developer. The opinion is noteworthy for two reasons. First, the procedural posture of this matter is unique because Cambridge Analytica failed to appear or to answer the complaint. This allowed the Commission under its Rules of Practice to find the facts to be as alleged in the complaint and to enter a final decision. Second, the Commission’s opinion holds that a false express privacy claim is material and thus violates Section 5 of the FTC Act.

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How We Spent Our Summer Vacation or Summary of CCPA Amendments

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The long anticipated amendments to the CCPA were passed by the California Legislature in early September and now await Governor Newsom’s signature.  Some of the changes were “clean up” amendments to update cross references, standardize language, and generally address issues of drafting.  What follows is a summary of the most significant and substantive amendments:

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