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FTC Reaches Proposed Settlement With Mobile Phone Manufacturer BLU, Highlighting the Importance of Effective Oversight of Third-Party Vendor Data Security and Privacy Practices

On April 30, 2018, BLU Products, Inc. (“BLU”) reached a settlement with the Federal Trade Commission (“FTC”) over allegations that BLU allowed ADUPS Technology Co. LTD (“ADUPS”) to collect detailed personal information about BLU’s consumers without their knowledge or consent, despite BLU’s assurances that it would keep the information secure and private, and that BLU generally failed to implement appropriate security procedures to oversee the security practice of its … Continue Reading

New Bipartisan Bill Shows Renewed Congressional Attention to Data Privacy and Security

On April 23, 2018, Senators Klobuchar (D-Minn.) and Kennedy (R-La.) introduced the Social Media Privacy Protection and Consumer Rights Act of 2018 (“the Act”), which was referred to the Senate Commerce Committee. Like the CONSENT Act introduced by Senators Markey (D-Mass.) and Blumenthal (D-Conn.)—discussed in detail in our recent client alert, The CONSENT Act and Renewed Congressional Data Privacy Interest—the Act would, if enacted, enhance the Federal Trade Commission’s (“FTC”) … Continue Reading

The Rise of State Consumer Protection Act Cyber Cases

Plaintiffs in data breach cases have tried many theories of recovery, including negligence, negligence per se, violations of state data protection statutes, violations of the Fair Credit Reporting Act, breach of fiduciary duty, and violations of the constitutional right to privacy, with mixed results.

Courts have rejected many of these claims, but plaintiffs and regulators are increasingly having success with allegations of unfair business practices.  At the federal level, the Federal Trade Commission (“FTC”) has … Continue Reading

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