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Last Friday arrived with the crash of millions of Windows computers used by companies across the globe, including critical infrastructure sectors such as hospitals, banks, airlines, and government agencies. Despite quick retraction of the cause, cascading effects continued throughout the day and into the weekend, demonstrating the widespread impact and significant business interruption losses. The outage is expected to trigger more stringent cybersecurity regulations, changes in cybersecurity governance, and adjustments to cyber insurance policies.Continue Reading Navigating Cyber Risks: Learning from Outages

Following up on announcements of sweeps from late January, last week California Attorney General Rob Bonta announced a settlement with the popular food delivery service DoorDash related to allegations that DoorDash breached the California Consumer Privacy Act (CCPA) and the California Online Privacy Protection Act (CalOPPA). The announcement doubles down on the Attorney General’s reiteration that privacy will continue to be priority for his office, while the new California Privacy Protection Agency (CPPA) is getting up to speed.Continue Reading DoorDash and California Attorney General Reach Settlement Over Privacy Allegations

In a Law360 article, co-authored by data, privacy & cybersecurity partner Fran Faircloth and associate May Yang, the team reflect on 2023 Global AI highlights, noting “2023 stands out as a landmark year for artificial intelligence and for generative AI in particular.”

“The launch of OpenAI’s ChatGPT in late 2022 marked a turning point, igniting a global race among tech companies and investors to harness and evolve this burgeoning technology,” said Fran and May. This development brings a myriad of legal implications, touching on intellectual property challenges, data privacy and cybersecurity risks, and ethical considerations in AI Deployment.Continue Reading Reviewing 2023’s Global AI Landscape Across Practice Areas

On October 30, 2023, President Biden issued an executive order (“EO”) on the safe, secure, and trustworthy development and deployment of artificial intelligence (“AI”) that has the potential to set far-reaching standards governing the use and development of AI across industries. Although the EO does not directly regulate private industry, apart from certain large-scale models…

Just before the July 4th holiday, the California Superior Court in Sacramento gave businesses struggling to comply with the California Privacy Rights Act (“CPRA”) a small gift by delaying enforcement of the CPRA’s regulations until March of 2024 at the earliest. While helpful in some respects, discussed below, the ruling does not expressly prohibit the California Privacy Protection Agency (“Agency”) from enforcing the underlying text of the CPRA where implementing regulations are not required. Ashkan Soltani, the executive director of the Agency, has been quoted as stating that “significant portions” of the law can still be enforced immediately. 

In short, businesses should not assume the Agency will remain idle. CPRA compliance remains a priority, though the Agency has indicated that enforcement is likely to proceed slowly at first—given staffing shortages at the Agency—with an initial emphasis on voluntary compliance. Further clarity on the Agency’s enforcement plans may be forthcoming on July 14, when the Agency is scheduled to hold a board meeting featuring Michael Macko, the Agency’s Deputy Director of Enforcement, who will provide an update on the Agency’s enforcement priorities.Continue Reading Enforcement of CPRA Regulations Delayed, but CPRA Compliance Still a Priority

In 2021, the U.S. Security and Exchange Commission (SEC) continued to stake its claim as a lead regulator for cybersecurity. Going into 2022, we expect the SEC will continue to aggressively scrutinize and pursue enforcement actions related to cybersecurity disclosures by public companies and cybersecurity practices of SEC-regulated entities like broker-dealers and investment advisers.  Moreover, Chair Gensler has announced that the SEC is currently working on a proposal for clearer cybersecurity governance rules, including topics such as “cyber hygiene and incident reporting.”

In many cases, the alleged faults that the SEC has found in the cybersecurity disclosures and practices of these entities go beyond the requirements of any other state or federal cybersecurity regulations. By making itself a leader in its expectations from regulated businesses, the SEC may become the agency that sets industry standard guidance for cybersecurity risk through the SEC mandates formed during its investigations and enforcement actions.Continue Reading The Future of SEC Cybersecurity Enforcement