On April 6, the Maryland legislature passed the Maryland Online Data Privacy Act of 2024, sending the bill to the state’s governor for signing.  The bill comes on the heels of the Kentucky Consumer Data Protection Act, which was signed into law on April 4.  If the Act is signed into law, it will bring the number of states with comprehensive privacy laws to 16.

On March 20, the U.S. House of Representatives passed House Resolution 7520, the Protecting Americans’ Data from Foreign Adversaries Act of 2024, targeting companies that sell sensitive information to “foreign adversaries.”  H.R. 7520 comes on the heels of two other major developments. First, House Resolution 7521 would require TikTok to divest from its Chinese parent company. Second, President Biden’s Executive Order 14117, requires, among other things, that the Attorney General make rules restricting data brokers from selling bulk sensitive personal data to “countries of concern.” The two resolutions and the E.O. are part of a growing, bipartisan trend to restrict access to sensitive information by foreign adversaries.

Yesterday, March 27, the U.S. Cybersecurity and Infrastructure Security Agency published the Notice of Proposed Rulemaking under the Cyber Incident Reporting for Critical Infrastructure Act of 2022. It is important to note that these are draft rules and do not, on their own, require organizations to report any incidents until after a Final Rule is published. CISA expects to publish the Final Rule in late 2025 with an effective date at least 60 days after publication. This is likely to push the effective date into 2026.

On Monday, the U.S. Department of Health and Human Services Office for Civil Rights issued updated guidance on the use of online tracking technologies by covered entities and business associates (here, referred to as “regulated entities”) under the Health Insurance Portability and Accountability Act Privacy Rule. The intent of the guidance is to provide regulated entities with considerations when using tracking technologies on their websites and mobile applications.

Last week, the California Attorney General announced its second-ever settlement under the California Consumer Privacy Act, as amended by the California Privacy Rights Act. The settlement was with the online food ordering and delivery platform DoorDash.

In an opinion filed on Friday, California’s Third District Court of Appeal reversed a lower court ruling that postponed until the end of March the enforcement of regulations promulgated pursuant to the California Privacy Rights Act.

On January 16, Gov. Phil Murphy (D) of New Jersey signed Senate Bill No. 332 into law. The New Jersey privacy law generally follows the same framework found in many of the comprehensive privacy laws enacted by other states and contains many of the same standard features. However, there are a few notable differences, highlighted below, that will require covered businesses to adjust their privacy programs.

The ever-increasing privacy and security risks via third-party vendors and service providers were apparent in 2023 with news of large organizations such as MOVEit, Okta and AT&T being affected. Research has shown that 98 percent of organizations have at least one third-party vendor that experienced a cyber incident within the past two years. With this growing trend, it is increasingly important for organizations to develop robust third-party risk management programs and to consistently review their third-parties to safeguard against security threats and ensure the security and privacy of their data.

On December 20, the Federal Trade Commission released a notice of proposed rulemaking to update the Children’s Online Privacy Protection Rule, known as the “COPPA Rule.” (We are linking to the official version of the proposed rule that was published in the Federal Register on January 11.) In a press release published on December 20, the FTC announced that the proposed amendments “would place new restrictions on the use and disclosure of children’s personal information and further limit the ability of companies to condition access to services on monetizing children’s data.”

The New York Department of Financial Services recently amended its Cybersecurity Regulation. The revisions aim to strengthen cybersecurity and technology controls to address evolving threats to consumer data and ensure the continued integrity of financial systems. Here are a few key elements of the amendments to Regulation and what we think will be their immediate impact on financial institutions.

The Constangy Cyber Advisor posts regular updates on legislative developments, data privacy, and information security trends. Our blog posts are informed through the Constangy Cyber Team's experience managing thousands of data breaches, providing robust compliance advisory services, and consultation on complex data privacy and security litigation. 

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