Colorado Privacy Act: The Patchwork of State Privacy Regimes Grows

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With Colorado Governor Jared Polis expected to sign the Colorado Privacy Act, SB-190 into law in the coming days, Colorado will join California and Virginia as the third state with a comprehensive data privacy law.1 The Colorado Privacy Act (“CPA”)—which passed with bipartisan support in both the Colorado House and Senate—is similar, but not identical, to the California and Virginia data privacy laws. Although its provisions will not take effect until July 1, 2023, the passage of the CPA grows the patchwork of state privacy regimes and may spur further calls for a uniform federal standard, as compliance for businesses becomes increasingly complicated.

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New Tools for International Data Transfers: European Commission Adopts New Standard Contractual Clauses

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The European Commission recently adopted a new set of Standard Contractual Clauses (SCCs) for organizations to use in compliance with the EU General Data Protection Regulation requirements for transfers of personal data from the European Economic Area. The previous SCCs were outdated and did not cover many common data processing scenarios. Organizations will have an 18-month transition period to adopt the new SCCs, but many parties will need this time to re-examine their dataflows and review their internal compliance procedures to meet the exacting new standards.

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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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Texas Amends State Breach Notification Law and Creates Advisor Council to Study Privacy Laws

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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.

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Further Expansion of Data Security Requirements in FTC Order with LightYear Dealer Technologies

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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.

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