The Google Buzz settlement that the Federal Trade Commission announced on March 30, 2011 is the latest in the line of the Commission's numerous Section 5 actions related to privacy and data security violations. The Google Buzz settlement, however, is unique in several important ways. The settlement represents (i) the first FTC settlement order has requires a company to implement a comprehensive privacy program to protect the privacy of consumers' information, and (ii) the Commission's first substantive U.S.-EU Safe Harbor framework enforcement action. Let's dive in (make sure to read the "Action Item" at the conclusion of the post!).
Dan Or-Hof, a privacy and technology partner at the Israeli law firm Pearl Cohen Zedek Latzer is reporting that the EU Commission published the much-anticipated announcement on the adequacy of data protection law in Israel. Published on January 31, 2011, the decision adopted by the Commission determines that Israel provides an adequate level of protection for personal data transferred from the EU, however only in relation to automated international data transfers and to automated processing of data in Israel.
Scott Blackmer provides a "discovery" checklist for global enterprises handling personal data from multiple jurisdictions, as well as advice on a global approach to privacy compliance and risk management.
German state data protection authorities have recently criticized both cloud computing and the EU-US Safe Harbor Framework. From some of the reactions, you would think that both are in imminent danger of a European crackdown. That's not likely, but the comments reflect some concerns with recent trends in outsourcing and transborder data flows that multinationals would be well advised to address in their planning and operations.
Dave and I recently spoke with Nymity regarding privacy and data security issues in cloud computing deals. You can read the interview here.
A new set of EU standard contract clauses ("SCCs" or "model contracts") for processing European personal data abroad came into effect on May 15, 2010. Taken together with a recent opinion by the official EU "Article 29" working group on the concepts of "controller" and "processor" under the EU Data Protection Directive, this development suggests that it is time to review arrangements for business process outsourcing, software as a service (SaaS), cloud computing, and even interaffiliate support services, when they involve storing or processing personal data from Europe in the United States, India, and other common outsourcing locations.
It often makes sense to refer to an information security management framework or standard in an outsourcing contract, but this is usually not very meaningful unless the customer also understands what particular security measures the vendor will apply to protect the customer's data.
As many of our readers know, the International Association of Privacy Professionals (IAPP) will celebrate 10 years this Tuesday, March 16. In connection with that anniversary, the IAPP is releasing a whitepaper, "A Call For Agility: The Next-Generation Privacy Professional," tomorrow, March 15. I am honored that the IAPP has given me the opportunity to read and blog about the whitepaper in advance of its official release.
The European Commission has announced a new set of standard contractual clauses to be used in agreements with processors located outside the EU / EEA. The new SCCs represent an effort to better ensure privacy protection when European personal data are passed on to subcontractors in business process outsourcing, cloud computing, and other contexts of successive data sharing.
On Tuesday, the Office of the Comptroller of the Currency (OCC), the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), the National Credit Union Administration (NCUA), the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC) (the "Joint Agencies") issued the Final Model Privacy Form under the Gramm-Leach-Bliley Act (GLBA).
Last month we posted some basics on cloud computing designed to provide some context and identify the legal issues. What is the cloud? Why is everyone in the tech community talking about it? Why do we as lawyers even care? Dave provided a few things for our readers to think about -- privacy, security, e-discovery. Now let's dig a little deeper. I am going to start with privacy and cross-border data transfers. Is there privacy in the cloud? What are the privacy laws to keep in mind? What are an organization's compliance obligations? As with so many issues in the privacy space, the answer begins with one key principle -- location, location, location.
I had the pleasure of hearing an excellent presentation by Tanya Forsheit on the legal issues arising out of cloud computing during the ABA Information Security Committee's recent meeting (at the end of July) in Chicago. The presentation resulted in a spirited debate between several attorneys in the crowd. The conversation spilled over into happy hour and became even more interesting. The end result: my previous misunderstanding of cloud computing as "just outsourcing" was corrected, and now I have a better appreciation of what "the cloud" is and the legal issues cloud computing raises.