Privacy & Information Security Law Blog

The Maryland legislature recently passed the Maryland Online Data Privacy Act of 2024 (“MODPA”), which was delivered to Governor Wes Moore for signature and, if enacted, will impose robust requirements with respect to data minimization, the protection of sensitive data, and the processing and sale of minors’ data.

On April 7, 2024, U.S. Sen. Maria Cantwell (D-WA) and U.S. Rep. Cathy McMorris Rodgers (R-WA) released a discussion draft of the latest federal privacy proposal, known as American Privacy Rights Act (“APRA” or the “Act”). The APRA builds upon the American Data Privacy and Protection Act (“ADPPA”), which was introduced as H.R. 8152 in the 117th Congress and advanced out of the House Energy and Commerce Committee but did not become law. As the latest iteration of a federal privacy proposal, the APRA signals that some members of Congress continue to seek to create a federal standard in the wake of—and in spite of—the ever-growing patchwork of state privacy laws.

The Connecticut Attorney General’s Office (“OAG”) has released a Report on the status of Connecticut’s Data Privacy Act (“CTDPA”), which took effect on July 1, 2023. The Report covers complaints, inquiries, and early enforcement activities under the CTDPA.

On March 8, 2024, the California Privacy Protection Agency (“CPPA”) Board discussed and voted 3-2 in favor of further edits to revised draft regulations regarding risk assessments and automated decisionmaking technology (“ADMT”), which were released in February 2024, but did not initiate the formal rulemaking process for these regulations, which is anticipated to begin in July 2024.

On March 7, 2024, the Court of Justice of the European Union (“CJEU”) issued its judgment in the case of IAB Europe (Case C‑604/22). In this judgment, the CJEU assessed the role of the Interactive Advertising Bureau Europe (“IAB Europe”) in the processing operations associated with its Transparency and Consent Framework (“TCF”) and further developed CJEU case law on the concept of personal data under the EU General Data Protection Regulation (“GDPR”).

On February 22, 2024, the Federal Trade Commission announced a settlement order against Avast Limited (“Avast”) requiring Avast to pay $16.5 million and prohibiting Avast from selling or licensing any web browsing data for advertising purposes. This ban is to settle charges that the company and its subsidiaries sold such information to third parties after promising that its products would protect consumers from online tracking.

On February 21, 2024, the California Attorney General announced that it had reached a settlement resolving an enforcement action under the California Consumer Privacy Act (“CCPA”) and the California Online Privacy Protection Act (“CalOPPA”) brought against online food delivery company  DoorDash, Inc. (the “Company”). This is the AG’s second CCPA enforcement settlement, following the agency’s settlement with Sephora.

In November 2023, the UK Information Commissioner’s Office (“ICO”) wrote to organizations operating 53 of the UK’s biggest websites regarding their compliance with data protection laws when using cookies.  On January 31, 2024, the ICO released a statement on such action noting that it received “an overwhelmingly positive response” with 38 of those organizations having changed their cookie banners in order to come into compliance. Others have either committed to ensuring compliance within a month, or are exploring other solutions such as contextual advertising.

On January 16, 2024, Governor Phil Murphy signed into law Bill 332, making New Jersey the 14^th state with a comprehensive state privacy law. The law is set to take effect in January 2025.

Applicability

The law will apply to controllers that conduct business in New Jersey or produce products or services that are targeted to New Jersey residents, and that during a calendar year meet any of the following criteria: (1) control or process the personal data of at least 100,000 New Jersey consumers (notably excluding personal data processed solely for the purpose of completing a payment transaction); or (2) control or process the personal data of at least 25,000 New Jersey consumers and derive revenue, or receive a discount on the price of any goods or services, from the “sale” of personal data. In line with the CCPA and other state privacy laws, the New Jersey law broadly defines “sale” as the disclosure of personal data to a third party for “monetary or other valuable consideration.”

On November 21, 2023, the UK Information Commissioner’s Office (“ICO”) issued a statement explaining that it has recently written to companies operating some of the UK’s most visited websites regarding their compliance with data protection laws when using cookies. The ICO noted that certain websites are not providing users with fair choices as to whether or not they are tracked for personalized marketing purposes, and referred to its guidance on making it simple for users to “Reject All” advertising cookies. 

On October 19, 2023, the Consumer Financial Protection Bureau (“CFPB”) proposed a new rule that would provide consumers with more control over their financial information and impose certain requirements on the following types of entities:

On September 14, 2023, the Federal Trade Commission issued a press release announcing the publication of a staff paper about blurred advertising. In the staff paper, the FTC describes blurred advertising as the blending of ads with digital media content (e.g., displaying ads within online games and virtual reality worlds). The FTC warns that these ads are not readily identifiable as marketing by consumers and pose a significant threat to young children who do not have the skills or cognitive defenses to identify and understand this type of advertising. The FTC recommends that ...

On September 14, 2023, California Attorney General Rob Bonta announced a $93 million settlement with Google, LLC (“Google”) resolving alleged violations of California’s false advertising law and unfair competition law.

On September 7, 2023, Lina M. Khan, Chair of the Federal Trade Commission, announced that the FTC will hold an open meeting virtually at 11 am ET on Thursday, September 14, 2023.  The agenda of the open meeting includes a vote by the FTC on whether to release a staff perspective and recommendations on the blurring of advertising and content on digital media and its effects on children and teens.

On August 9, 2023, India’s upper house (i.e., Rajya Sabha) passed the Digital Personal Data Protection Bill (“DPDPB”), two days after India’s lower house (i.e., Lok Sabha) passed the legislation. The DPDPB now heads to India President Droupadi Murmu for signature.

On July 14, 2023, the Norwegian Data Protection Authority (“DPA”) ordered Meta Platforms Ireland Limited and Facebook Norway AS (jointly, “Meta”) to temporarily cease the processing of personal data of data subjects in Norway for the purpose of targeting ads on the basis of “observed behavior,” when relying on either the contractual necessity legal basis (Article 6(1)b)) or the legitimate interests legal basis (Article 6(1)(f)) of the GDPR.

On June 22, 2023, the Oregon House of Representatives passed the Oregon Consumer Privacy Act (S.B. 619) (the “OCPA”), which was previously passed by the Oregon Senate on June 20, 2023. The OCPA has been sent to the Oregon governor’s desk for signature. If signed, the OCPA would make Oregon the 12th state to have enacted comprehensive privacy legislation.

On June 13, 2023, Texas Governor Greg Abbott signed H.B. 18, or the Securing Children Online through Parental Empowerment (“SCOPE”) Act that would impose obligations on digital service providers to protect minors.

On June 13, 2023, Texas Governor Greg Abbott signed H.B. 18, or the Securing Children Online through Parental Empowerment (“SCOPE”) Act that would require digital service providers to get parental consent to create an account with minors younger than 18 years of age.  

On May 24, 2023 Google LLC (“Google”) announced its recently updated privacy terms providing that, for many of Google’s advertising services, it will no longer act as a service provider for the purposes of the California Privacy Rights Act of 2020 (“CPRA”). The change may affect businesses’ prior determinations of whether they “sell” personal information under the California Consumer Privacy Act of 2018 (“CCPA”). The updated terms take effect on July 1, 2023, the day CPRA enforcement begins.

On May 10, 2023, the Texas Senate passed H.B. 4, also known as the Texas Data Privacy and Security Act (“TDPSA”). The TDPSA now heads to a conference committee between the Texas Senate and House to rectify the differences between the Senate and House versions. If the TDPSA is signed into law, Texas could become the tenth state to enact comprehensive privacy legislation.

On May 4, 2023, the Court of Justice of the European Union (“CJEU”) issued a judgment in the Österreichische Post case (C-300/21). In the decision, the CJEU clarified that a mere infringement of the EU General Data Protection Regulation (“GDPR”) is not sufficient to give data subjects the right to receive compensation under Article 82 of the GDPR. Article 82 provides that “any person who has suffered material or non-material damage as a result of an infringement of this Regulation shall have the right to receive compensation from the controller or processor for the damage suffered.”

On April 21, 2023, the Montana and Tennessee legislatures voted to enact comprehensive consumer privacy bills in their respective states. If signed by their governors, Montana’s Consumer Data Privacy Act (S.B. 384) (“MCDPA”) and Tennessee’s Information Protection Act (H.B. 1181) (“TIPA”) could make these states the eighth and ninth U.S. states to enact comprehensive privacy legislation.

On April 13, 2023, the Indiana Senate concurred to the Indiana House’s amendments of Senate Bill 5 (“SB 5”) a day after the House returned the bill to the Senate with amendments, and a couple days after the Indiana House unanimously voted to approve SB 5. SB 5 now will head to Governor Eric Holcomb for a final signature, where he will have seven days upon transmission to sign SB 5 into law or veto it. This could make Indiana the seventh U.S. state to enact comprehensive privacy legislation.

On March 6 and 15, 2023, both chambers of the Iowa Legislature unanimously voted to approve Senate File 262, which could make Iowa the sixth U.S. state to enact comprehensive privacy legislation. The bill is most similar to Utah’s comprehensive privacy law.

On January 18, 2023, the European Data Protection Board (“EDPB”) published its Report on the work undertaken by the Cookie Banner Taskforce (the “Report”).

On January 11, 2023, the Belgian Data Protection Authority (“Belgian DPA”) announced that it has approved the Interactive Advertising Bureau Europe’s (“IAB Europe”) action plan with respect to its Transparency and Consent Framework (“TCF”).

On December 29, 2022, the French Data Protection Authority (the “CNIL”) announced that it imposed an €8,000,000 fine on Apple for violations of the French rules on targeted advertising and the use of cookies and similar tracking technologies.

Kochhar & Co. reports that, on November 18, 2022, the Government of India (“Government”) released the long-awaited fourth draft of India’s proposed privacy law, now renamed the Digital Personal Data Protection Bill.

Terms and Application

The draft law uses terminology similar to past versions: the data controller is called the “data fiduciary,” the data subject is called the “data principal,” and personal information is referred to as “personal data.” There is no separate category of sensitive personal data.   

On November 14, 2022, Google LLC (“Google”) agreed to a $391.5 million settlement with the attorneys general of 40 U.S. states over the company’s location tracking controls available in its user account settings.   

The investigation by the state attorneys general found that, between 2014 and 2020, Google misled users by failing to disclose that toggling the “Location History” setting to off did not disable all tracking activities. The settlement noted that Google retained the ability to track users’ location via the “Web & App Activity” setting, and used the information for targeted advertising purposes.

On November 1, 2022, the Federal Trade Commission hosted their annual PrivacyCon 2022, which was available to the public via webcast. The FTC held seven different panels highlighting the latest research and trends in consumer privacy and data security.

On November 1, 2022, the Digital Markets Act (the “DMA”) entered into force. The DMA introduces new rules for certain core platforms services acting as “gatekeepers” in the digital sector (including search engines, social networks, online advertising services, cloud computing, video-sharing services, messaging services, operating systems and online intermediation services). The DMA also aims to prevent such platforms from imposing unfair conditions on businesses and consumers, and to ensure the openness of important digital services.

On October 25, 2022, the Federal Trade Commission announced the agenda for its annual PrivacyCon to be held on November 1, 2022. The event will cover consumer surveillance, automated decision-making systems, children’s privacy, listening devices, augmented and virtual reality, interfaces and dark patterns, and AdTech.

On October 13, 2022, the Interactive Advertising Bureau (“IAB”) released for public comment an updated version of its contractual framework and new U.S. State Signals (“Signals”) specifications to help the digital advertising industry comply with the comprehensive state privacy laws of California, Virginia, Colorado, Utah and Connecticut.

On October 3, 2022, Google LLC (“Google”) agreed to pay the State of Arizona $85 million to settle a consumer privacy lawsuit that alleged the company surreptitiously collected consumers’ geolocation data on smartphones even after users disabled location tracking. 

On September 21, 2022, the Federal Communications Commission (“FCC”) announced a proposed combined fine of $3.4 million against Sinclair Broadcast Group, Nexstar Media Group and 19 other broadcast television licensees for violations of rules limiting commercial matter in children's television programming.

On August 24, 2022, California Attorney General Rob Bonta announced the Office of the Attorney General’s (“OAG’s”) first settlement of a California Consumer Privacy Act (“CCPA”) enforcement action, against Sephora, Inc.

On August 23, 2022, the Federal Trade Commission announced it is seeking additional public comment on “how children are affected by digital advertising and marketing messages that may blur the line between ads and entertainment” in conjunction with its “Protecting Kids from Stealth Advertising in Digital Media” event on October 19, 2022. The event will focus on manipulative marketing practices targeted towards children, particularly those related to influencer marketing and online games.

On July 6, 2022, the Better Business Bureau National Programs’ Children’s Advertising Review Unit (“CARU”) announced that it had found Outright Games in violation of the Children’s Online Privacy Protection Act (“COPPA”) and CARU’s Self-Regulatory Guidelines for Advertising and Guidelines for Children’s Online Privacy Protection. Outright Games owns and operates the Bratz Total Fashion Makeover app, which CARU determined to be a “mixed audience” child-directed app subject to COPPA and CARU’s Guidelines due to the app’s subject matter, bright colors, visual content, lively audio and gameplay features.

On June 21, 2022, the Colorado Attorney General’s Office announced it is seeking informal input from the public on its rulemaking related to the Colorado Privacy Act (“CPA”). Before starting its formal rulemaking process, the Office has indicated it wants to better “understand the community’s thoughts and concerns about data privacy.”

On June 3, 2022, the Federal Trade Commission announced it is seeking public comment on its 2013 guidance, “.com Disclosures: How to Make Effective Disclosures in Digital Advertising” (the “Guidance”). The FTC indicated that it is updating the Guidance to better protect consumers against online deceptive practices, particularly because some companies have interpreted the current version of Guidance to “justify practices that mislead consumers online.” For example, the FTC explains that companies have wrongfully claimed they can avoid FTC Act liability by placing required disclosures behind hyperlinks. The updated Guidance will address issues such as advertising on social media, in video games, in virtual reality environments, and on mobile devices and applications, as well as the use of dark patterns, manipulative user interface designs, multi-party selling arrangements, hyperlinks and online disclosures.

On June 3, 2022, House Energy and Commerce Chair Rep. Frank Pallone (D-NJ), Ranking Member Rep. Cathy McMorris Rodgers (R-WA) and Senate Commerce, Science and Transportation Committee Ranking Member Sen. Roger Wicker (R-MS) released a new comprehensive federal privacy bill, the American Data Privacy and Protection Act (“ADPPA”).

On May 25, 2022, Twitter reached a proposed $150 million settlement with the Department of Justice (“DOJ”) and the Federal Trade Commission to resolve allegations that the company deceptively used nonpublic user contact information obtained for account security purposes to serve targeted ads to Twitter users. In a complaint filed in federal court, the government alleged that Twitter violated both the FTC Act and a 2011 FTC Order by misrepresenting the extent to which the company maintained and protected users’ nonpublic contact information. The proposed settlement would require Twitter to pay $150 million in civil penalties and implement a comprehensive privacy and information security program “with extensive procedures to safeguard user information and assess internal and external data privacy risks.”

On May 10, 2022, Connecticut Governor Ned Lamont signed An Act Concerning Personal Data Privacy and Online Monitoring, after the law was previously passed by the Connecticut General Assembly in April. Connecticut is now the fifth state to enact a consumer privacy law.

On February 2, 2022, the Litigation Chamber of the Belgian Data Protection Authority (the “Belgian DPA”) imposed a €250,000 fine against the Interactive Advertising Bureau Europe (“IAB Europe”) for several alleged infringements of the EU General Data Protection Regulation (the “GDPR”), following an investigation into IAB Europe Transparency and Consent Framework (“TCF”).

On December 27, 2021, the Federal Trade Commission sought public comment on a petition filed by Accountable Tech calling on the FTC to use its rulemaking authority to prohibit “surveillance advertising” as an “unfair method of competition” (“UMC”). Accountable Tech is a non-profit organization that advocates for social media companies to strengthen the integrity of their platforms.

On December 15, 2021, the Federal Trade Commission announced a $2 million settlement with OpenX Technologies (“OpenX”) in connection with alleged violations of the Children’s Online Privacy Protection Act Rule (“COPPA Rule”) and the FTC Act. According to the FTC’s complaint, OpenX knowingly collected personal information from children under age 13 without parental consent, and collected geolocation data from users of all ages who opted out of being tracked.