DBR ON DATA

Security, Privacy and Information Governance

Author: Katherine Armstrong (page 2 of 7)

FTC Settlement with PayPal Resolving Allegations That Venmo Made Misrepresentations to Consumers and Violated the Gramm-Leach-Bliley Act

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The FTC has entered into a Consent Agreement with PayPal, Inc., settling allegations that PayPal, through its operation of Venmo, had violated Section 5 of the FTC Act and the Gramm-Leach-Bliley Act’s (“GLBA”) Privacy and Safeguards Rules.   PayPal operates Venmo, a payment and social networking application and website that allows consumers to make peer-to-peer payments, which also shares information regarding such payments through a social network feed.  The agreement will be subject to public comment for 30 days.

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DOJ Announces Federal Indictment in Massive Cyberfraud Enterprise

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The Department of Justice announced the unsealing of a federal indictment charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise that is alleged to have engaged in a large-scale cyberfraud.   The indictment alleges that the enterprise caused more than $530 million in actual losses to consumer, businesses, and financial institutions.

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Information Injury Workshop Covers Non-Financial Harms Faced By Consumers

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The Federal Trade Commission held its Information Injury Workshop in December in Washington D.C. The goal of the workshop was to explore how to characterize and measure information injuries to consumers.

Information injury is the harm that a victim suffers as a result of privacy or data security breach. Financial, health and safety injury are the most common types of alleged injuries that the FTC has seen in privacy and data security in the past few years. Yet, injury that does not cause financial harm can be challenging to quantify.

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FTC Nominees Identify Agency’s Top Challenges in Web Questionnaires

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The Senate Commerce, Science & Transportation Committee has set confirmation hearings for February 14 for President Donald Trump’s four nominees to the Federal Trade Commission (FTC).

For the past year, there have been two commissioners leading the agency – Acting Chairman Maureen Ohlhausen and Commissioner Terrell McSweeny.

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Connected Cars in 2018 – Ready for the Fast Lane?

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One of the most frequent predictions for significant growth in 2018 is the development of the connected car ecosystem. During the second half of 2017, there were workshops, proposed legislation and other guidance from the Department of Transportation and the National Highway Traffic Safety Administration (NHTSA).

In June 2017, the FTC and the NHTSA hosted a workshop in Washington, D.C. to discuss the enormous amounts of data collected and used in the connected car ecosystem. The workshop included representatives from consumer groups, industry, government and academia, and explored the benefits and challenges in this fast-growing market. After reviewing the materials submitted in connection with the workshop, the FTC released its Key Takeaways earlier this month.

In addition, the U.S. House of Representatives passed H.R. 3388, the SELF DRIVE (Safely Ensuring Lives Future Development and Research in Vehicle Evolution) Act to encourage testing, development and deployment of highly automated vehicles. Finally, the U.S. Department of Transportation and the NHTSA released new federal guidance for automated vehicles titled Automated Driving Systems 2.0: A Vision for Safety.

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VTech Settlement Resolves COPPA Allegations in FTC’s First Connected Toy Case

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The Federal Trade Commission announced a settlement with VTech Electronics Limited and its U.S. subsidiary in the FTC’s first case involving Internet-connected toys.

VTech had been charged with violating the FTC Act and the Children’s Online Privacy Protection Act (COPPA) by collecting personal information from children without providing direct notice and obtaining their parent’s consent, as well as failing to properly secure the data it collected.  The settlement includes a payment of $650,000 in civil penalties, injunctive relief, and the establishment of a comprehensive security program.

Background

VTech, a Hong Kong corporation, and VTech Electronics North America, advertise, market and distribute electronic learning products (ELPs).  The companies offer online games available through the ELPs and operate the Learning Lodge Navigator online service, a platform similar to an app store that allows customers to download child-directed apps, games, e-books and other online content.  As of November 2015, approximately 2.25 million parents had created accounts with Learning Lodge for nearly 3 million children, according to the FTC.

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