Alan L. Friel and Gerald J. Ferguson of BakerHostetler provide their interpretation of recent rulings: Both the administrative law judge’s decision in LabMD and the Third Circuit’s recent decision in Wyndham, which we previously blogged about, put the FTC on notice that it cannot assume that in the wake of a security breach, allegedly inadequate data security will necessarily constitute…
Category: Federal
Korea opens pan-industry center for credit data protection and security
Lee Sun-young reports: Korea Credit Information Services, a pan-industry body tasked with data preservation and protection, was launched in Seoul on Tuesday amid mounting calls for data security after a series of large-scale information leaks. The new entity will act as a centralized data center for personal credit information, taking over data collected and preserved…
Scope of Preemption in Proposed Data Security Legislation is Uncertain
David Bender writes: According to a recent analysis by the Congressional Research Service (“CRS”), the extent of state law preemption in recent federal legislative proposals relating to data security is unclear. Several bills introduced in the 114th Congress would impose federal data security or breach notification requirements on covered entities, similar to existing requirements in nearly every…
North Carolina Employees are not “Authorized” to Divert Employer Data
Amy R. Worley writes: As the year draws to a close, employer claims under the Computer Fraud and Abuse Act (“CFAA”) against departing employees for stealing or otherwise diverting employer information without authorization to do so are dying slow deaths in many federal courts across the nation. As noted over on the Non-Compete and Trade Secrets…
Healthcare industry gets cybersecurity support in omnibus bill
Beth Kutscher reports: The healthcare information technology sector is hailing healthcare-specific cybersecurity provisions that have made their way into the massive omnibus legislation that Congress passed on Friday. The $1.1 trillion spending and tax extender bill, which is now on its way to President Barack Obama, includes language that closely follows the recommendations from the Healthcare Information…
House Financial Services Committee Passes Data Security Bill
NACS writes: On December 8, the House Financial Services Committee convened to mark up and subsequently pass legislation opposed by NACS: the Data Security Act of 2015 (H.R. 2205). Introduced by Representative Randy Neugebauer (R-TX), the bill would establish a national data security and breach notification standard that would impose enormous costs on most industries…