Authored By: Marcia M. Ernst While the National Labor Relations Board (“NLRB”) previously upheld an employer policy that prohibited employee phone use at work for safety and security reasons[1], the Federal Communications Commission (“FCC”) recently upheld a fine against an employer for using a signal jamming device to prevent employees from using their phones at work.[2] Signal jammers, which overpower, block, or interfere with authorized radio frequencies and communications, are illegal under the federal Communications Act of 1934, as amended (“Act”)[3], with only a few exceptions recognized for use by the government. Jammers present a direct danger to public safety… Read more
Technology Law
Metaverse: The Next Commercial Frontier
It appears that the next commercial frontier is the so-called “metaverse.” The term “metaverse” was first used in science fiction novels. It combines the word “universe” with the prefix “meta,” which comes from a Greek word meaning “beyond.”[1] In the technical sphere, the “metaverse” is some form of a virtual universe that is the style being defined. Several technology and gaming companies have entered the fray of defining what this metaverse will be. An American writer, Neal Stephenson, referred to his idea of the metaverse in his 1992 science-fiction novel Snow Crash. Stephenson envisioned an immersive virtual world where people… Read more
FTC Imposes Record COPPA Fine
Continuing its aggressive approach to the enforcement of privacy law violations, the FTC last week imposed on Musical.ly, Inc., the operator of the popular TikTok app (formerly called Musical.ly), a record-setting fine of $5.7 million for the company’s violations of the Children’s Online Privacy Protection Act (“COPPA”). COPPA establishes basic online privacy protections for children under the age of 13 and generally requires parental consent for the collection and sharing of any personal data for children younger than 13. The TikTok app allows users to make videos of themselves lip-syncing to popular songs and then post those videos online. In… Read more
Is Inadequate Data Security an Unfair Trade Practice?
In LabMD, Inc. v. Federal Trade Commission, Case No. 16-16270 (decided June 6, 2018) the United States Court of Appeals for the Eleventh Circuit addressed the enforcement of an FTC order finding that a business’s allegedly inadequate data security practices were unfair trade practices under Section 5(a) of the Federal Trade Commission Act. LabMD operated a medical laboratory that conducted diagnostic testing for cancer. Contrary to LabMD policy, an employee installed on a company computer a file-sharing application. That application allowed an outside party to download a file that contained the personal information of thousands of customers. The FTC initiated… Read more
EU-US Privacy Shield: Frequently Asked Questions
What is the EU-U.S. Privacy Shield? The EU-U.S. Privacy Shield (the “Privacy Shield”) is a framework designed by the U.S. Department of Commerce and the European Commission to provide companies in the U.S. and in the EU with a means to comply with data protection laws and regulations when transferring personal data between the U.S. and EU member countries. In July 2016, following an earlier EU Court of Justice decision that struck down the previous EU-U.S. Safe Harbor Framework, the European Commission determined that the Privacy Shield was adequate to permit data transfers to the U.S. under EU law. … Read more
General Data Protection Regulation (GDPR): Frequently Asked Questions
What is the General Data Protection Regulation? The General Data Protection Regulation (the “GDPR”) (Regulation (EU) 2016/679) is a European Union regulation intended to harmonize data privacy laws across Europe and increase data privacy protections for all European Union citizens. The GDPR was approved by the European Council and Parliament on April 14, 2016, and will come into force beginning on May 25, 2018. The GDPR will replace the Data Protection Directive 95/46/EC (the “Directive”), which required each member state of the European Union to pass national legislation to implement the intended outcome of the Directive. The result was a… Read more
Cybersecurity in M&A Transactions: Frequently Asked Questions
1. What types of transactions implicate cybersecurity and data privacy concerns? Cybersecurity and data privacy concerns arise in many different types of M&A transactions, but greater focus on potential cybersecurity and data privacy issues should be directed toward transactions involving (a) a target company that operates in certain highly-regulated industries, (b) the acquisition of sensitive information and data, and/or (c) the transfer of sensitive information and data across national borders. Target companies that operate in the financial services and healthcare industries, for example, are subject to the Gramm-Leach-Bliley Act and the Health Insurance Portability and Accountability Act of 1996, respectively…. Read more
Is Your Website a “Place of Public Accommodation” Under the Americans with Disabilities Act?
What do burgers and art supplies have in common? They are both sold on websites recently challenged by disabled plaintiffs. Blind plaintiffs have filed lawsuits alleging certain websites violate federal, state and city laws because they contain various access barriers and are not fully usable by the blind. This summer two federal courts in New York – the Southern District (Markett v. Five Guys Enterprises LLC, 17-cv-788-KBF, ECF No. 33 (July 21, 2017)) and the Eastern District (Andrews v. Blick Art Materials, LLC, , 17-cv-767-JBW, ECF No. 25 (August 1, 2017)) – found that websites selling these goods were “places of public accommodation.” The… Read more
Recent Cyber Insurance Decision Rejects Claim for Computer Fraud
A federal judge in Michigan recently granted summary judgment to Travelers in American Tooling Center, Inc. v. Travelers Casualty and Surety Company of America, Case No. 16-12108, United States District Court, Eastern District of Michigan. That decision interpreted the “computer fraud” provision of Travelers’ insurance policy, finding no coverage for the insured for the losses claimed. The basic facts were that American Tooling asked its vendor in China, YiFeng, for all outstanding invoices by email. American Tooling received a response by email, from an account that looked very much like the YiFeng account, and which directed American Tooling to send… Read more
A Primer on the EU’s General Data Protection Regulation
Overview Over four years in the making, the General Data Protection Regulation (the “GDPR”) was approved by the European Council and Parliament on April 14, 2016, and will come into force beginning on May 25, 2018. In the wake of ever-increasing cyber security and data privacy threats across the globe, the GDPR is intended to harmonize data privacy laws across Europe and increase data privacy protections for all European Union citizens. The GDPR will replace the Data Protection Directive 95/46/EC (the “Directive”), which required each member state of the European Union to pass national legislation to implement the intended outcome… Read more