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The guidance outlines steps that organizations should take to enhance data security as hybrid working and learning introduce new risks.

By Kieran Donovan and Malika Sajdik

On August 30, 2022, the Office of the Privacy Commissioner for Personal Data of Hong Kong (PCPD) issued a Guidance Note on Data Security Measures for Information and Communications Technology (the Guidance Note).

The Guidance Note was published in light of the “new normal” of hybrid working and learning, which has heightened personal data security risks from the increased digitization of data and use of information and communications technology (ICT). In 2021, the PCPD received a total of 140 personal data breach notifications from organizations, representing a year-on-year increase of 36%, and in the first seven months of 2022 alone, the PCPD received 68 data breach notifications. Common incidents reported included hacking, unauthorized access to personal data by employees, loss of documents or portable devices, and inadvertent disclosure of personal data via email.

The Information Commissioner’s Office published draft guidance on privacy enhancing technologies that can be used to comply with privacy-by-design requirements.

By Gail Crawford, Fiona Maclean, Irina Vasile, and Amy Smyth

On 7 September 2022, the Information Commissioner’s Office (ICO) published a draft guidance on privacy-enhancing technologies (Draft Guidance) in which it explains what privacy enhancing technologies (PETs) are and how organizations can use them to meet privacy-by-design requirements. PETs incorporate data protection principles by (amongst others) minimizing use of personal data, ensuring security, and facilitating data subject rights. Organizations that want to use PETs should first conduct a data protection impact assessment to determine whether such technologies are indeed adequate for their processing activities.

The EDPB sets out relevant steps and factors that EU supervisory authorities should consider when calculating administrative fines under the GDPR.

By Gail Crawford, Ian Felstead, James Lloyd, Tim Wybitul, Irina Vasile, Sami Qureshi, and Amy Smyth

On 16 May 2022, the European Data Protection Board (EDPB) adopted draft Guidelines 04/2022 on the calculation of administrative fines under the GDPR (Draft Guidelines).[1] The Draft Guidelines are currently subject to public consultation and comments may be submitted until 27 June 2022 (at the latest). The EDPB’s aim is to create a harmonised methodology for the calculation of GDPR fines. All EU supervisory authorities (SAs) must use the same starting points, on the basis of which administrative fines can be subsequently calculated and further tailored for individual cases. The EDPB clearly emphasizes that the Draft Guidelines are not drafted to enable controllers/processors to precisely calculate the expected fine; this determination will rather depend on all the individual circumstances of the case. SAs will need to ensure that fines are effective, proportionate, and dissuasive, taking into account the particularities of each case. While the EDPB acknowledges that SAs retain discretion to account for these particularities, they are clearly expected to follow the methodology set out in the Draft Guidelines.

The evolution of cybersecurity-related representations and warranties in M&A transaction documentation has had an impact on financing transactions.

Major M&A transactions and IPOs have become the target of increasingly sophisticated cyberattacks, in some cases affecting thousands of companies along the supply chain. Regulators have responded with stepped-up enforcement, extending their reach not just to victim companies but also to third parties like payment processors and insurance carriers.

Today’s most pressing cybersecurity risks can have a significant effect on borrowers and…

Companies should take steps now to prepare for the new rules and expectations.

By Jennifer C. Archie, Tony Kim, Serrin Turner, Alexander L. Stout, Ryan J. Malo, and James A. Smith

The US government continues to expand regulatory requirements around notification and disclosure of major cyberattacks or incidents. New measures are arriving on the heels of high-profile ransomware attacks on US companies and critical infrastructure, such as the Colonial Pipeline hack that caused gas shortages in the eastern United States last summer.

Announced shared cybersecurity priorities across the Executive Branch include:

  • Cyber hygiene in the public and private sector, especially where critical infrastructure is involved
  • Operational collaboration between the public and private sector for tier one events
  • Disruption of the flow of cryptocurrency or other consideration to attackers
  • Fulsome, accurate, timely disclosure to investors and other stakeholders
  • Comprehensive reporting of incidents

Utah enacts data privacy legislation in the mold of California, Colorado, and Virginia, but with less onerous requirements for businesses, in what is expected to be a model for more states going forward.

By Jennifer Archie, Michael Rubin, Joseph Hansen, and Wesley Tiu

On March 24, 2022, Utah Governor Spencer Cox signed the Utah Consumer Privacy Act (UCPA), making Utah the fourth US state to enact comprehensive data privacy legislation. The UCPA was introduced on February 17, 2022, and sped through the state legislature, receiving final passage on March 3, 2022.

The UCPA, which is set to take effect on December 31, 2023, builds off existing and forthcoming privacy legislation in California, Colorado, and Virginia, but lightens some of the compliance burdens on businesses. The UCPA does not impose any new privacy obligations on businesses that are not already required in California, and businesses will be familiar with the UCPA’s requirements — all of which have appeared in existing and forthcoming state data privacy laws. In a welcome change for businesses, however, the UCPA is narrower in certain respects as compared to its analogues in California (CCPA/CPRA), Colorado (CPA), and Virginia (VCDPA). (See, e.g., Virginia Consumer Data Protection Act: Second US State Passes Comprehensive Data Privacy Legislation.)

The UCPA represents the latest in a string of state privacy laws that seek to fill a nationwide gap while Congress continues to debate the merits of a federal data privacy law. The UCPA marks a slightly different variation, as it appears to have been more directly informed by industry groups such as TechNet and the State Privacy Security Coalition. These industry groups are working toward a uniform set of privacy laws in the United States, and Utah could set an example for additional states.

This blog post discusses some of the UCPA’s key provisions.

The French Data Protection Authority’s white paper discusses how companies can comply with data privacy and security obligations.

By Christian F. McDermott, Myria Saarinen, Calum Docherty, Charlotte Guerin, Jiou (Alex) Park, and Amy Smyth

The use of card, contactless, and innovative digital payment solutions has significantly increased in recent years, fueled by the immediate impacts of the ongoing COVID-19 pandemic and the longer-term growth of e-commerce and open banking. In this context, the legal and regulatory environment around payment data is no longer limited to traditional actors in the banking sector or the long-established ambit of banking secrecy rules. As such, stakeholders from fintech startups to established technology giants face an increasing patchwork of compliance obligations.

The Personal Information Protection Law, or PIPL, imposes stringent obligations of a similar standard to the GDPR and will take effect on November 1, 2021.

By Hui Xu, Kieran Donovan, and Bianca Lee

On August 20, 2021, the Standing Committee of the National People’s Congress adopted the Personal Information Protection Law of the People’s Republic of China (PIPL), the first legislation dedicated to protecting personal information in China. PIPL will take effect on November 1, 2021. PIPL previously…

The regulations aim to protect the security of the CII and impose more compliance obligations in support of the Network Security Law.

By Hui Xu and Kieran Donovan

On July 30, 2021, the State Council of the People’s Republic of China (PRC) published the Security Protection Regulations on the Critical Information Infrastructure (the Regulations), which was adopted by the State Council on April 27, 2021. The Regulations took effect on September 1, 2021, along with the recently passed Data Security…

The Data Security Law will enhance an increasingly comprehensive legal framework for information and data security in the PRC.

By Hui Xu and Kieran Donovan

On June 10, 2021, the Standing Committee of China’s National People’s Congress passed the Data Security Law (DSL), which will come into effect on September 1, 2021. The primary purpose of the law is to regulate data activities, safeguard data security, promote data development and usage, protect individuals and entities’ legitimate rights and interests, and…