On October 13. 2020, White Castle System, Inc. petitioned the United States Court of Appeals for the Seventh Circuit for permission to seek an interlocutory appeal pursuant to 28 U.S.C. § 1292(b).  This petition arises out of the United States District Court for the Northern District of Illinois’ opinion on White Castle’s motion for judgment on the pleadings issued on August 7, 2020.  The matter hinged on whether repeated collection of the same biometric information from an employee without prior consent constituted separate violations of the Illinois Biometric Information Privacy Act (BIPA).

Summary of District Court’s Cothron v. White Castle Opinion

In the district court’s opinion, Judge Tharp held that “[a] party violates Section 15(b) [of the BIPA] when it collects, captures, or otherwise obtains a person’s biometric information without prior informed consent.”  Judge Tharp continued, “[t]his is true the first time an entity scans a fingerprint or otherwise collects biometric information, but it is no less true with each subsequent scan or collection.”  Similarly, Judge Tharp held that BIPA requires that dissemination of information without consent, even if to the same third party as previously disseminated, is an additional violation of the BIPA.


Continue Reading Does Continued Collection of The Same Biometric Information Increase BIPA Violations? The Seventh Circuit (or Illinois Supreme Court) Has An Opportunity to Clear the Air

On October 12, 2020, the California Attorney General provided public notice of a new Proposed Third Set of Modifications to the Regulations under the California Consumer Privacy Act (the “CCPA”).  You will be forgiven if you assumed that “final approval” of the existing Regulations back in August meant the Regulations were final—or at least we hope so because we made the same assumption.

Since August, however, it appears the AG was working behind the scenes to resurrect previously withdrawn Sections 999.306(b)(2) (covering offline notice of opt-out if a business substantially interacts with consumers offline); 999.315(c) (minimum standards for opt-out requests); and 999.326(c) (specific requirements for authorized agents).  The AG describes the newly proposed rules as follows:


Continue Reading Spooky: Presumed-Dead CCPA Regulations Come Back to Life

Monetary penalties are the attention-grabbing headline when the FTC or any regulator brings an enforcement action against a company.  They are the looming threat to incentivize and influence compliance.  Over the summer, FTC Chairman Joseph J. Simons (“Chairman Simons”) issued a statement in connection with a settlement that Chairman Simons believes “the goal of a civil penalty should be to make compliance more attractive than violation.  Said another way, violation should not be more profitable than compliance.”

Continue Reading FTC Fines: FTC Chairman Reminds Companies That Fines Are the FTC’s Strategic Tool To Deter Noncompliance

On September 17, 2020, four Republican Senators (Roger Wicker – Mississippi, Chairman, John Thune – South Dakota, Deb Fischer – Nebraska, and Marsha Blackburn – Tennessee) introduced sweeping federal privacy legislation entitled: Setting an American Framework to Ensure Data Access, Transparency, and Accountability (“SAFE DATA”) Act. This proposed comprehensive national privacy law has three main components:

  1. Provides consumers with more choice and control over their data
  2. Directs business to be more transparent and accountable
  3. Strengthens the FTC’s enforcement power


Continue Reading Federal Data Privacy Legislation: Will it Help the US Remain Competitive in the Global Marketplace?

On August 14, 2020, the California Attorney General announced final approval of the California Consumer Privacy Act Regulations by the Office of Administrative Law.  The Regulations take effect immediately.

While the revisions made to the Final Regulations mostly consist of “non-substantive changes” to correct grammatical errors or clarify the wording of various provisions, business should be aware of the “global modifications” made in a few key areas.  These are summarized below along with our take on what they may mean for businesses:


Continue Reading Finally Final: CCPA Regulations Take Effect

The EU’s General Data Protection Regulation (“GDPR”) contains the much-publicised right of subject access, which gives an individual the right to access a copy of all the personal data a controller holds in relation to him or her.

Under the GDPR, anything that can identify a living individual is personal data. Obvious examples include names, dates of birth, and addresses. Less obvious examples include photographs, identification numbers, or statements of opinion or fact about a person.

The GDPR also has extra-territorial scope, which means that it applies to organisations and businesses outside the borders of the EU if they meet certain criteria. Organisations based outside the EU could therefore find themselves on the receiving end of a subject access request (“SAR”) from an employee, customer or any other individual whose data they process.


Continue Reading Subject Access Requests and Cross-Border Privilege: Tips for In-House Counsel

Earlier this year, U.S. Senator Sherrod Brown of Ohio released a draft discussion bill that if implemented would drastically alter corporations’ ability to collect and use personal information from consumers.

According to Sen. Brown, “We need legislation now more than ever that empowers Americans to control their personal information. No person should have to worry about being spied on, just as no one should worry about their information being bought and sold or stolen.” Brown believes that his bill would “change the fundamental framework of privacy in this country” by shifting the burden of privacy protection from consumers to corporations. Brown’s new bill is critical of the current consent-based framework that requires customers to agree to privacy policies in order to use specific online service.


Continue Reading Senator Brown Proposes New Privacy Bill

Earlier this year, several pieces of privacy related legislation pending in the 2020 General Assembly session were referred by a standing committee of the Virginia House of Delegates to the Joint Commission on Technology and Science (JCOTS) for study outside of the regular legislative session.  JCOTS has taken its first steps toward establishing study committees to look at several issues prior to the 2021 regular legislative session.

Specifically, JCOTS established the following study committees:

  • Data Protection & Privacy Advisory Committee
  • Children’s Online Protection Advisory Committee
  • Facial Recognition within Law Enforcement Advisory Committee


Continue Reading Virginia Legislative Commission Set to Begin Look at Data Protection, Privacy and Children’s Online Privacy Protection Issues

Artificial intelligence (AI) refers to the ability of a computer or a computer-enabled robotic system to process information and produce outcomes in a manner similar to the thought processes of humans in learning, decision making and problem solving.  As a result of rapid advances in AI, pre-pandemic, McKinsey Global Institute estimated that between 75 and 375 million people around the world will need to change jobs or acquire new skills by 2030.  AI both holds promise of innovation and disruption, as does the legal framework that is developing to rein in its risks without hindering its progress.

In May 2019, the US Government joined the OECD (Organisation for Economic Co-operation and Development) in setting forth principles to improve the innovation and trustworthy development and application of AI.  At the same time, the bipartisan Artificial Intelligence Initiative Act (AIIA) was introduced in the US Senate to organize a national strategy for developing AI and provide a $2.2 billion federal investment over five years to build an AI-ready workforce, accelerating the delivery of AI applications from government agencies, academia, and the private sector over the next 10 years.


Continue Reading The Evolving World of AI

Does your phone immediately unlock for use after you glance at it?  Have you visited your favorite social media platform only to find that you have been tagged in dozens of pictures?  Or how about that time you scanned your fingerprints or eyes to open your phone, gain admittance to a theme park, or pass through airport security?  These features all involve biometrics technology—the latest trend and high-growth area of technology used to help organizations provide consumers with a more effortless and interactive experience in exchange for personal information about your physical or behavioral attributes.  Companies should be mindful in collecting this data and how they use and store that information.

Biometrics include facial, fingerprint, iris, gestures, and voice recognition.  While biometrics technology is becoming more ubiquitous in daily life and being employed by more governmental agencies and service providers, new privacy considerations will continue to emerge as a result of the pieces of personal information shared by consumers to increase convenience.


Continue Reading As Biometrics Technology Permeates Everyday Life, What Laws Should Companies Be Aware Of?