Data privacy litigation and enforcement actions continue to roil the private sector, most recently with the FTC’s announcement of a $425 million settlement with Equifax in the wake of the Equifax data breach. Less discussed is the fact that data privacy and security remains a real threat in the public sector. As we recently reported, the 2019 Verizon Data Breach Investigations Report found that 16% of confirmed data breaches were in the public sector. Three recent developments highlight the breadth and scope of the threat, reflecting that federal agencies and government contractors remain vulnerable to cyberattacks and may be subject to liability for cybersecurity failures.
The Office of Management and Budget (OMB) has issued a recent memorandum that moves the federal government forward in embracing the importance of the “governance” of data.
Businesses in Texas that own or license computerized data will expect a shortened data breach notification deadline for any breach of sensitive personal information after January 1, 2020. Meanwhile, reporting to state attorney general (“AG”) will become mandatory if more than 250 Texans are involved in a single data breach.
The FTC has entered into a settlement with LightYear Dealer Technologies, doing business as DealerBuilt, a technology company that develops and sells dealer management system (DMS) software and data processing services to automotive dealerships nationwide. The settlement resolves allegations that DealerBuilt engaged in a number of unreasonable data security practices. The DealerBuilt’s DMS software tracks, manages, and stores information related to all aspects of a dealership’s business, including sales, finance, inventory, accounting, payroll, and parts and service and collects and maintains personal and competitively sensitive information about consumers and employees.
On May 29, 2019, Nevada Governor Steve Sisolak signed into law SB 220, which amends Nevada’s security and privacy law to require an operator of a website or online service for commercial purposes to permit consumers to opt-out of the sale of any covered personally identifiable information that the operator has collected or will collect about the consumer. The law becomes effective October 1, 2019, several months before the California Consumer Privacy Act’s (CCPA) effective date of January 1, 2020, and is therefore set to become the first of its kind to be implemented in the U.S.
On May 24, 2019, Oregon Governor Kate Brown signed into law Senate Bill 684, which requires vendors, service providers and other entities that maintain or possess consumers’ personal information to notify consumers of a security breach.