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.
The Federal Trade Commission has approved an amendment to the Safeguards Rule under the Gramm-Leach-Bliley Act that creates a new data privacy regulatory reporting requirement for non-banking financial entities. Covered entities must notify the FTC within 30 days of discovery of a “notification event” that involves the unauthorized acquisition of unencrypted customer information of 500 or more consumers. The new rule, announced on October 27, takes effect 180 days after publication in the Federal Register, meaning approximately May 2024.
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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