Topic: Privacy/Data Security/Cyber Risk

FTC Issues Guide for Businesses on Securing Data stored by Digital Copiers

The Federal Trade Commission (the “FTC”) recently issued a publication entitled Copier Data Security: A Guide for Businesses (the “Publication”) to alert businesses of the potential data security threat posed by digital copiers.  As outlined in the Publication, digital copiers contain hard drives that store data about documents that are printed, copied, scanned, faxed or emailed. 

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Congress Passes Act to Exclude Attorneys, Other Professionals From Reach of Red Flags Rule

On December 8, 2010, the United States House of Representatives passed Senate Bill 3987, the Red Flag Program Clarification Act of 2010, to exempt lawyers, doctors, accountants, and other professionals from the Red Flags* Rule.  Having been approved by both Houses of Congress, the Act requires only President Obama’s signature to become law. 

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New York Court Compels Treasury Department to Release Identity of OFAC Licensees

The New York Times and its reporter Ron Nixon (collectively the “Times”) brought an action pursuant to the Freedom of Information Act (the “Act”) against the United States Treasury in the New York Southern District court.  The Times sought to compel the Treasury Department to release the names of individuals who had been granted licenses by the Department’s Office of Foreign Assets Control (“OFAC”) to conduct business in or with foreign countries that would otherwise be unlawful under OFAC’s economic sanctions programs. 

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Maine Supreme Court Issues Decision in Hannaford Case, Rules That Time and Effort Spent Mitigating Harm from Data Theft Do Not Constitute Cognizable Injury

This morrning, the Maine Supreme Court issued its decision in the matter of In re Hannaford Bros. Co. Customer Data Security Breach Litigation, Docket No. Fed-09-586, on a question certified to the Court by the United States District Court for the District of Maine in a pending action of the same name (Docket No. 08-md-01954).

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UK: FSA Fines Zurich UK

The Financial Services Authority (FSA) has reported that it has fined Zurich UK £2,275,000 for “failing to have adequate systems and controls in place to prevent the loss of customers’ confidential information“. According to the FSA’s Final Notice, “the breaches related to the management of risks associated with the security of customer information in the context of certain outsourcing arrangements.” 

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Recent Court Rulings on Employer Review of Employees’ Electronic Messages – Adjustment to Employer Policies Needed

Two recent cases, one from the U.S. Supreme Court and one from the Supreme Court of New Jersey, suggest that companies need to periodically, if not immediately, update their computer and e-mail policies in order to minimize or prevent litigation when employees use the company’s systems for personal messages. 

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