Topic: Privacy/Data Security/Cyber Risk

District of Maine Certifies Question of What Constitutes “Cognizable Injury” from Data Breach to Supreme Judicial Court of Maine

Last month, the United States District Court for the District of Maine certified a question of law to the Supreme Judicial Court of Maine regarding the issue of what constitutes cognizable injury to a consumer in a case stemming from the alleged theft of credit card data, a question of great significance in the relatively new field of data security law. 

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Public Hearing on Massachusetts Information Security Regulations

On September 22, 2009, Socheth Sor of Edwards Angell Palmer & Dodge LLP testified at a public hearing before the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) in Boston regarding 201 CMR 17.00, Standards for the Protection of Personal Information of Residents of the Commonwealth (the “Regulations”). 

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Final Rules Issued for Breach of Electronic Health Information

In the last week of August, 2009, the Department of Health and Human Services (“HHS”) and the Federal Trade Commission (“FTC”) officially published their final rules concerning consumer notification of breaches of protected health information (“PHI”). Congress mandated that both rules be issued under the Health Information Technology for Economic and Clinical Health (“HITECH”) Act, part of the American Recovery and Reinvestment Act of 2009. 

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BREAKING NEWS: Client Advisory – Amended Massachusetts Security Regulations and Extension of Effective Date

On August 17, 2009, the Massachusetts Office of Consumer Affairs and Business Regulation (the “OCABR”) issued a press release announcing important amendments to 201 CMR 17.00: Standards for the Protection of Personal Information of Residents of the Commonwealth (the “Regulations”), and a third extension of its effective date from January 1, 2010 to March 1, 2010. The OCABR also called a public hearing scheduled for September 22, 2009 in connection with the Regulations.

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FTC Announces Three-Month Suspension of Red Flags Rule; New Guidance to Be Released Shortly

On Wednesday, July 29, 2009, the Federal Trade Commission (FTC) announced that it would be suspending enforcement of the Red Flags Rule, its new anti-fraud regulations, for three months, until November 1, 2009.  The three-month extension followed a request from the House of Representatives’ Appropriations Committee that the FTC defer enforcement of the regulations. 

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UK: Financial Services Authority Punishes Failure to Protect Confidential Customer Information with Hefty Fines

On 22 July 2009 three HSBC companies: HSBC Life UK Ltd; HSBC Actuaries and Consultants Ltd; and HSBC Insurance Brokers Ltd, were fined £1.6m, £875,000, and £700,000 respectively by the UK Financial Services Authority (FSA). The fines are in response to those companies failing to have in place adequate systems and controls to protect customers’ confidential information from being lost or stolen. 

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Federal Court Decides That Data Breach Case Against Supermarket Chain Can Proceed, But Only As to One Plaintiff

Earlier this week, the United States District Court for the District of Maine issued its ruling on a motion to dismiss a class action complaint against a supermarket chain based on a massive data breach.  The decision addressed the question of whether when a third party steals a customer’s credit and debit card information from a grocer, can the customer then recover from the grocer? 

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