It is important for all companies — especially small and midsize companies — to have a basic understanding of what the FTC considers to be reasonable cybersecurity. The FTC is known for being one of the more aggressive regulators that are investigating and enforcing (what it views as) inadequate cybersecurity by companies doing business in the United States. In the watershed case solidifying the FTC’s authority to regulate companies’ cybersecurity under the FTC Act, F.T.C. v. Wyndham Worldwide Corp., the U.S. Third Circuit Court of Appeals looked to resources published on the FTC’s website and found that Wyndham’s cybersecurity was very rudimentary and contravened recommendations in the FTC’s 2007 guidebook, Protecting Personal Information: A Guide for Businesses.
The FTC recently published a couple of helpful resources on its website and companies of all sizes would be well-served to spend some time reviewing the recommendations in these resources:
Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.
Countdown to GDPR Compliance is a complimentary webinar that I will be moderating on Thursday, December 7, 2017, at 12:00 PM Central. This is the second webinar in a three-part series sponsored by Mackrell International and will focus on Compliance for Non-EU Companies. You don’t want to miss it!
Moderator: Shawn Tuma
Presenter: Marta Stephanian, Ten Holter/Noordam
Presenter: Henrik Nilsson, Wesslau Söderqvist Advokatbyrå
COUNTDOWN TO GDPR COMPLIANCE: Compliance for Non-EU Companies
Sponsored by Mackrell International
Thursday, December 7, 2017 @ 12:00 PM CT
LINK for more information
Register via email: GDPR@hogefenton.com
I hope you are able to attend the webinars and find the information helpful in your business. As always, please let me know if you have any questions or if I can help you.
Shawn E. Tuma | Scheef & Stone, L.L.P.
Cybersecurity & Data Privacy Attorney
2600 Network Blvd., Suite 400, Frisco, TX 75034
214.472.2135 (direct) | 214.726.2808 (mobile)
Three Democratic senators introduced legislation Thursday requiring companies to notify customers of data breaches within 30 days of their discovery and imposing a five year prison sentence on organizations caught concealing data breaches.
The FTC and Uber have settled the enforcement action the FTC brought against the company. This action stems from Uber’s data breach of more than 100,000 individuals’ PII despite its promises that their data was “securely stored within our databases.” The FTC found this promise was misleading when compared with the actions the company was really taking. In settling the dispute, Uber entered into a Consent Decree that Continue reading “Uber’s Settlement With FTC Emphasizes Companies’ Need for Cyber Risk Management Programs”
The United States Department of Health and Human Services’ Office for Civil Rights has just issued a checklist and infographic to aid healthcare organizations and their vendors in quickly responding to cyberattacks in compliance with HIPAA requirements.
Shawn Tuma delivered the presentation Cybersecurity Legal Issues: What you really need to know at a Cybersecurity Summit sponsored by the Tarleton State University School of Criminology, Criminal Justice, and Strategic Studies’ Institute for Homeland Security, Cybercrime and International Criminal Justice. The presentation was on September 13, 2016 at the George Bush Institue. The following are the slides from Tuma’s presentation — a video of the presentation will be posted soon!
Continue reading “Cybersecurity Legal Issues: What you really need to know (slides)”
Business leaders, when people like me tell you that having a cybersecurity incident in your company is like being in a building on fire, we are not exaggerating. Take a look at the following checklist (note, this is not an incident response plan!) while keeping in mind that over half of the items on that checklist should be performed almost simultaneously within hours of learning that your company has had a data breach.
While this is not an exhaustive list, these are the items that most often need to be performed in the cases in which I guide clients through the incident response and remediation process. Of course there will be exceptions, additions, and omissions — take this for what it is, a starting point. Finally, note that the picture below is an image of the checklist and is blurry — you can download the original here.
Shawn Tuma (@shawnetuma) is a business lawyer with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Partner at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.
The National Labor Relations Board (NLRB) has continued its assault on businesses and their ability to legitimately protect their computer systems and information against unauthorized non-business use by employees.
A few weeks ago, I wrote 3 Important Points on Computer Policies in which I stressed (1) why your company must have them but (2) that such policy must comply with the NLRB’s Purple Communications case. The NLRB has struck again.
On May 3, 2016, an NLRB Administrative Law Judge struck down as overbroad a Computer Use Policy in Ceasars Entertainment Corporation d/b/a Rio All-Suites Hotel and Casino (NLRB Docket Sheet). The policy, titled Use of Company Systems, Equipment, and Resources, was part of the company handbook and stated that computer resources may not be used to do several things that were listed out and is standard in many similar policies. The NLRB decision (Decision) found that prohibitions against the following was illegal:
- Share confidential information with the general public, including discussing the company, its financial results or prospects, or the performance or value of company stock by using an internet message board to post any message, in whole or in part, or by engaging in an internet or online chatroom
- Convey or display anything fraudulent, pornographic, abusive, profane, offensive, libelous or slanderous
- Send chain letters or other forms of non-business information
- Solicit for personal gain or advancement of personal views
- Violate rules or policies of the Company
The NLRB found that prohibiting the conduct mentioned above made the policy overbroad and could effectively limit employees’ use of their employer’s email system to engage in Section 7 communications during nonworking time. Because of that, it found the employer has engaged in an unfair labor practice prohibited by the National Labor Relations Act.
Welcome to Wonderland.
Shawn Tuma (@shawnetuma) is a business lawyer with an internationally recognized reputation in cybersecurity, computer fraud and data privacy law. He is a Cybersecurity & Data Protection Partner at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.
In his latest Ethical Boardroom article, Shawn Tuma explains why it is important for board members to have an active role in their company’s cybersecurity preparation and tells them several key steps they can take to do so. Tuma also explains why cybersecurity is as much a legal issue and business issue as it is an IT issue. Continue reading “Managing Cybersecurity Risks for Boards of Directors”
Do not miss this podcast discussing key cybersecurity legal events from 2015. Shawn Tuma joined the DtSR Gang [Rafal Los (@Wh1t3Rabbit), James Jardine (@JardineSoftware), and Michael Santarcangelo (@Catalyst)] on the Down the Security Rabbit Hole podcast.
In this episode…
- Most important cybersecurity-related legal developments of 2015
- Tectonic Shift that occurred with “standing” in consumer data breach claims
- Discussion of law prior to Neiman Marcus case, and post-Neiman Marcus
- Does this now apply to all consumer data breach cases?
- Immediate impact? Companies now liable?
- Lesson is in seeing the trend and how incrementalism works
- Michaels & SuperValu case dismissals in light of Neiman Marcus
- Regulatory Trends
- FTC & SEC gave hints in 2014, post-emergence of Target details
- Wyndham challenged authority – came to fruition in August 2015
- SEC not far behind – significant case in September 2015
- Aggressiveness of FTC is substantial – FTC v. LabMD … all over LimeWire
- Officer & Director Liability
- 2014 – SEC Comm. fired the warning shot … pointed the finger
- Shareholder derivative litigation
- Individual liability of IT / Compliance / Privacy “officers”
- Anticipated 2016 Legal Trends
- Regulatory enforcement … which, by the way, is why NIST is becoming default
- Shareholder Derivative – much more likely than consumer class actions at this time
- Lessons from both of these: when you need to persuade the “money folks” that they need to act, mention D&O Liability (especially Caremark) and Regulatory focus on individuals … now they’re in the cross-hairs
- Realization that cybersecurity is more of a legal issue than anything else (IT or business) b/c it is the legal requirements and consequences that ultimately drive everything
Go HERE to listen to the Podcast!