PBI CYBERLAW UPDATE 2018

Transcription

1 PBI CYBERLAW UPDATE 2018 Presented by Emily Lowe July 17, Morgan, Lewis & Bockius LLP

2 REGULATORY RESPONSE TO FACEBOOK/CAMBRIDGE ANALYTICA FINDINGS 2

3 Background Last March, Facebook admitted it allowed the unlawful transfer of 50 million user profiles to Cambridge Analytica (U.K.-based data analytics consulting firm that offers services for political campaigns). This number has increased to up to 87 million users. unlawful in this instance means without user consent. 3

4 Background We have heard a lot about Cambridge Analytica (because of its ties to the mostrecent US election and potentially to Brexit), but Cambridge Analytica was able to collect the information via an agreement with a company (founded by a UK researcher) who marketed an app on FB called thisisyourdigitallife where FB users were asked to fill out a questionnaire/personality quiz. 4

5 NOTE All survey participants consented to having their data collected, but they were told it was for academic use. The app also scraped the data of the user s friends without their knowledge or consent and transferred all the data to Cambridge Analytica. 5

6 ARE YOU REALLY SURPRISED THEY USE OUR DATA? Is it really surprising that social media platforms are using our data? If it s free, YOU are the product. What surprised us all (but probably shouldn t have) is what Cambridge Analytica did with the information once it had it. 6

7 What s the Remedy? No real remedy for a user, or inadequate remedy, if user terms are violated,. Growing public outrage (and question whether or not this is privacy watchdog groups, the media and/or users, since FB hasn t exactly lost users since the announcement), and recent dialogue world-wide regarding privacy are paving the way for a framework for handling this on a going forward basis. Consumers may finally have the leverage to demand market value for their personal data (this has been referred to as a data-dividend ). 7

8 Regulation? Lawmakers in the U.S. and other countries including the UK, Australia, Canada and Europe are investigating Facebook. Mark Zuckerberg testified before Congress and the UK Parliament regarding FB s privacy practices. The FTC is investigating whether Facebook violated its 2012 Consent Order (where it previously agreed to comply with FTC order provisions imposing privacy and data security requirements). State attorney generals have demanded responses from Facebook, and/or have opened both joint and independent investigations into Facebook s involvement with Cambridge Analytica. (Massachusetts, New York, New Jersey, and Missouri). It has also been reported that the DOJ s Special Counsel Robert Mueller requested s from Cambridge Analytica as part of his investigation into the Russian interference of the 2016 Presidential Election. 8

9 California Law New California privacy law effective January 1, 2020 (California Consumer Privacy Act, A.B. 375) The new law provides California residents with new rights including the right to be informed about what kinds of personal data companies have collected and why it was collected. The law also provides protections including the right to request the deletion of personal information, the right to opt out of the sale of personal information, and the right to access the personal information in a readily useable format that enables its transfer to third parties without hindrance. 9

10 The Result Consumers are going to be afforded more rights regarding the use and dissemination of their personal information. Companies are going to have to deal with balancing the requirements of new laws and regulations with their business models. 10

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12 Biography Emily R. Lowe represents clients in commercial transactions, with a focus on the acquisition, use, protection, development, and commercialization of technology and biotechnology. Emily helps domestic and international companies commercialize their products through various commercial vehicles, including manufacturing and supply agreements and distribution strategies, and development and licensing agreements. Emily R. Lowe Pittsburgh, PA T F Additionally, Emily assists clients in marketing their products and services online and through joint marketing agreements, sales representative agreements, and distribution agreements. She focuses on the software, specialized manufacturing, consumer products and retail industries. Emily also has experience in licensing software and providing services to sports teams and sports leagues. 12

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