Tag: data protection

China publishes provisions on the protection of personal data of children

10. October 2019

On 23 August 2019, the Cyberspace Administration of China published regulations on the cyber protection of personal data of children, which came into force on 1 October 2019. China thus enacted the first rules focusing exclusively on the protection of children’s personal data.

In the regulations, “children” refers to minors under the age of 14. This corresponds to the definition in the national “Information Security Technology – Personal Information Security Specification”.

The provisions regulate activities related to the collection, storage, use, transfer and disclosure of personal data of children through networks located on the territory of China. However, the provisions do not apply to activities conducted outside of China or to similar activities conducted offline.

The provisions provide a higher standard of consent than the Cybersecurity Law of China. To obtain the consent of a guardian, a network operator has to provide the possibility of refusal and expressly inform the guardian of the following:

  • Purpose, means and scope of collection, storage, use, transfer and disclosure of children’s personal information;
  • Storage location of children’s personal information, retention period and how the relevant information will be handled after expiration of the retention period;
  • Safeguard measures protecting children’s personal information;
  • Consequences of rejection by a guardian;
  • The channels and means of filing or reporting complaints; and
  • How to correct and delete children’s personal information.

The network operator also has to restrict internal access to children’s personal information. In particular, before accessing the information, personnel must obtain consent of the person responsible for the protection of children’s personal data or an authorised administrator.

If children’s personal data are processed by a third party processor, the network operator is obliged to carry out a security assessment of the data processor commissioned to process the children’s personal data. He also has to conclude an entrustment agreement with the data processor. The data processor is obliged to support the network operator in fulfilling the request of the guardian to delete the data of a child after termination of the service. Subletting or subcontracting by the data processor is prohibited.

If personal data of children is transferred to a third party, the network operator shall carry out a security assessment of the commissioned person or commission a third party to carry out such an assessment.

Children or their legal guardians have the right to demand the deletion of children’s personal data under certain circumstances. In any case, they have the right to demand the correction of personal data of children if they are collected, stored, used or disclosed by a network operator. In addition, the legal guardians have the right to withdraw their consent in its entirety.

In the event of actual or potential data breaches, the network operator is obliged to immediately initiate its emergency plan and take remedial action. If the violation has or may have serious consequences, the network operator must immediately report the violation to the competent authorities and inform the affected children and their legal guardians by e-mail, letter, telephone or push notification. Where it is challenging to send the notification to any data subject, the network operator shall take appropriate and effective measures to make the notification public. However, the rules do not contain a precise definition of the serious consequences.

In the event that the data breach is caused or observed by a data processor, the data processor is obliged to inform the network operator in good time.

CJEU rules that Right To Be Forgotten is only applicable in Europe

27. September 2019

In a landmark case on Tuesday the Court of Justice of the European Union (CJEU) ruled that Google will not have to apply the General Data Privacy Regulation’s (GDPR) “Right to be Forgotten” to its search engines outside of the European Union. The ruling is a victory for Google in a case against a fine imposed by the french Commission nationale de l’informatique et des libertés (CNIL) in 2015 in an effort to force the company and other search engines to take down links globally.

Seeing as the internet has grown into a worldwide media net with no borders, this case is viewed as a test of wether people can demand a blanket removal of information about themselves from searches without overbearing on the principles of free speech and public interest. Around the world, it has also been perceived as a trial to see if the European Union can extend its laws beyond its own borders.

“The balance between right to privacy and protection of personal data, on the one hand, and the freedom of information of internet users, on the other, is likely to vary significantly around the world,” the court stated in its decision.The Court also expressed in the judgement that the protection of personal data is not an absolute right.

While this leads to companies not being forced to delete sensitive information on their search engines outside of the EU upon request, they must take precautions to seriously discourage internet users from going onto non-EU versions of their pages. Furthermore, companies with search engines within the EU will have to closely weigh freedom of speech against the protection of privacy, keeping the currently common case to case basis for deletion requests.

In effect, since the Right to be Forgotten had been first determined by the CJEU in 2014, Google has since received over 3,3 million deletion requests. In 45% of the cases it has complied with the delisting of links from its search engine. As it stands, even while complying with deletion requests, the delisted links within the EU search engines can still be accessed by using VPN and gaining access to non-EU search engines, circumventing the geoblocking. This is an issue to which a solution has not yet been found.

Data Breach: Millions of patient data available on the Internet

20. September 2019

As reported by the US investment platform ProPublica and the German broadcaster Bayerischer Rundfunk, millions of highly sensitive patient data were discovered freely accessible on the Internet.

Among the data sets are high-resolution X-ray images, breast cancer screenings, CT scans and other medical images. Most of them are provided with personal data such as birth dates, names and information about their doctor and their medical treatment. The data could be found for years on unprotected servers.

In Germany, around 13,000 data records are affected, and more than 16 million worldwide, including more than 5 million patients in the USA.

When X-ray or MRI images of patients are taken, they are stored on “Picture Archiving Communication System” (PACS) servers. If these servers are not sufficiently secured, it is easy to access the data. In 2016, Oleg Pianykh, Professor of Radiology at Harvard Medical School, published a study on unsecured PACS servers. He was able to locate more than 2700 open systems, but the study did not prompt anyone in the industry to act.

The German Federal Ministry for Information Security has now informed authorities in 46 countries. Now it remains to be seen how they will react to the incident.

Google strives to reconcile advertising and privacy

27. August 2019

While other browser developers are critical of tracking, Google wants to introduce new standards to continue enabling personalized advertising. With the implementation of the “Privacy Sandbox” and the introduction of a new identity management system, the developer of the Chrome browser wants to bring browsers to an uniform level in processing of user data and protect the privacy of users more effectively.

The suggestions are the first steps of the privacy initiative announced by Google in May. Google has published five ideas. For example, browsers are to manage a “Privacy Budget” that gives websites limited access to user data so that users can be sorted into an advertising target group without being personally identified. Google also plans to set up central identity service providers that offer limited access to user data via an application programming interface (API) and inform users about the information they have passed on.

Measures like Apple’s, which have introduced Intelligent Tracking Protection, are not in Google’s interest, as Google generates much of its revenue from personalized advertising. In a blog post, Google also said that blocking cookies promotes non-transparent techniques such as fingerprinting. Moreover, without the ability to display personalized advertising, the future of publishers would be jeopardized. Their costs are covered by advertising. Recent studies have shown, that the financing of publishers decreases by an average of 52% if advertising loses relevance due to the removal of cookies.

Based on these ideas, the discussion among developers about the future of web browsers and how to deal with users’ privacy should now begin. Google’s long-term goal is a standardization process to which all major browser developers should adhere. So far, Google has had only limited success with similar initiatives.

ICO releases a draft Code of Practice to consult on the Use of Personal Data in Political Campaigning

14. August 2019

The United Kingdom’s Information Commissioner’s Office (ICO) plans to give consultations on a new framework code of practice regarding the use of personal data in relation to politcal campaigns.

ICO states that in any democratic society it is vital for political parties,  candidates and campaigners to be able to communicate effectively with voters. Equally vital, though, is that all organisations involved in political campaigning use personal data in a transparent, lawful way that is understood by the people.

Along with the internet, politcal campaigning has become increasingly sophisticated and innovative. Using new technologies and techniques to understand their voters and target them, political campaigning has changed, using social media, the electoral register or screening names for ethnicity and age. In a statement from June, ICO has adressed the risk that comes with innovation, which, intended or not, can undermine the democratic process by hidden manipulation through the processing of personal data that the people do not understand.

In this light, ICO expresses that their current guidance is outdated, since it has not been updated since the introduction of the General Data Protection Regulation (GDPR). It does not reflect modern campainging practices. However, the framework does not establish new requirements for campaigners, instead aims at explaining and clarifying data protection and electronic marketing laws as they already stand.

Before drafting the framework, the Information Commissioner launched a call for views in October 2018 in hopes of input from various people and organisations. The framework is hoped to have taken into account the responses the ICO had received in the process.

In hopes of being the basis of a statutory code of practice if the relevant legislation is introduced, the draft of the framework code of practice is now out for public consultation, and will remain open for public access until Ocotber 4th.

Hackers steal millions of Bulgarians’ financial data

18. July 2019

After a cyberattack on the Bulgarian’s tax agency (NRA) millions of taxpayers’ financial data has been stolen. In an estimate, it is said that most working adults in the 7 million country are affected by some of their data being compromised. The stolen data included names, adresses, income and social security information.

The attack happened in June, but an E-mail from the self-proclaimed perpetrator was sent to Bulgarian media on Monday. It stated that more than 110 databases of the agency had been compromised, the hacker calling the NRA’s cybersecurity a parody. The Bulgarian media were further offered access to the stolen data. One stolen file, e-mailed to the newspaper 24 Chasa,  contained up to 1,1 million personal identification numbers with income, social security and healthcare figures.

The country’s finance minister Vladislav Goranov has appologized in parliament and to the Bulgarian citizens, adding that about 3% of the tax agency’s database had been affected. He made clear that whoever attempted to exploit the stolen data would fall under the impact of Bulgarian law.

In result to this hacking attack, the Bulgarian tax agency now faces a fine of up to 20 million euros by the Commission of Personal Data Protection (CPDP). In addition, the issue has reignited an old debate about the lax cybersecurity standards in Bulgaria, and its adjustement to the modern times.

Record fine by ICO for British Airways data breach

11. July 2019

After a data breach in 2018, which affected 500 000 customers, British Airways (BA) has now been fined a record £183m by the UK’s Information Commissioners Office (ICO). According to the BBC, Alex Cruz, chairman and CEO of British Airways, said he was “surprised and disappointed” by the ICO’s initial findings.

The breach happened by a hacking attack that managed to get a script on to the BA website. Unsuspecting users trying to access the BA website had been diverted to a false website, which collected their information. This information included e-mail addresses, names and credit card information. While BA had stated that they would reimburse every customer that had been affected, its owner IAG declared through its chief executive that they would take “all appropriate steps to defend the airline’s position”.

The ICO said that it was the biggest penalty that they had ever handed out and made public under the new rules of the GDPR. “When an organization fails to protect personal data from loss, damage or theft, it is more than an inconvenience,” ICO Commissioner Elizabeth Dunham said to the press.

In fact, the GDPR allows companies to be fined up to 4% of their annual turnover over data protection infringements. In relation, the fine of £183m British Airways received equals to 1,5% of its worldwide turnover for the year 2017, which lies under the possible maximum of 4%.

BA can still put forth an appeal in regards to the findings and the scale of the fine, before the ICO’s final decision is made.

EU-US Privacy Shield and SCCs facing legal challenge before the EU High Courts

3. July 2019

Privacy Shield, established between the European Union (EU) and the United States of America (US) as a replacement of the fallen Safe Harbor agreement, has been under scrutiny from the moment it entered into effect. Based on the original claims by Max Schrems in regards to Safe Harbor (C-362/14), the EU-US data transfer agreement has been challenged in two cases, one of which will be heard by the Court of Justice of the European Union (CJEU) in early July.

In this case, as in 2015, Mr. Schrems bases his claims elementally on the same principles. The contention is the unrestricted access of US agencies to European’s personal data. Succeeding hearings in 2017, the Irish High Court found and raised 11 questions in regards to the adequacy of the level of protection to the CJEU. The hearing before the CJEU is scheduled for July 9th. The second case, originally planned to be heard on July 1st and 2nd, has been brought to the General Court of the European Union by the French digital rights group La Quadrature du Net in conjunction with the French Data Net and Fédération FDN. Their concerns revolve around the inadequacy of the level of protection given by the Privacy Shield and its mechanisms.
This hearing, however, has been cancelled by the General Court of the EU only days prior to its date, which was announced by La Quadrature du Net through tweet.

Despite the criticism of the agreement, the European Commission has noted improvements to the level of security of the Privacy Shield in their second review of the agreement dating from December 2018. The US Senate confirmed Keith Krach as Under Secretary for Economic Growth, Energy and Environment, with his duties to include being the permanent ombudsman in regards to the Privacy Shield and the EU data protection, on June 20th 2019.

As it is, both cases are apt to worry companies that rely on being certified by the Privacy Shield or the use of SCCs. With the uncertainty that comes with these questions, DPOs will be looking for new ways to ensure the data flow between Europe and the US. The European Commission stated that it wants to make it easier for companies in the future to comply with data transfers under the GDPR. It plans to update the SCCs to the requirements of the GDPR, providing a contractual mechanism for international transfers. Nonetheless, it is unclear when those updates are happening, and they may be subject to legal challenge based on the future Schrems ruling.

Consumers should know how much their data is worth

27. June 2019

US Senators Mark R. Warner (Democrats) and Josh Hawley (Republicans) want to know from Facebook, Google and Co. exactly how much the data of their users, measured in dollars and cents, is worth to them.

Last Sunday, the two senators announced their intention for the first time in a US talk show: Every three months, each user is to receive an overview of which data has been collected and stored and how the respective provider rates it. In addition, the aggregated value of all user data is to be reported annually to the US Securities and Exchange Commission. In this report, the companies are to disclose how they store, process and protect data and how and with which partner companies they generate sales with the data. All companies with more than 100 million users per month will be affected.

The value of user data has risen enormously in recent years; so far, companies have protected their internal calculations as company secrets. In addition, there is no recognized method for quantifying the value of user data; only when a company is sold or valued by means of an initial public offering (IPO) does it become obvious. In the case of the WhatsApp takeover it was  $ 55 per user, in the case of Skype it was $ 200.

But one can doubt the significance of these figures. A further indication can be the advertising revenues, which are disclosed by companies per quarter. At the end of 2018, Facebook earned around $6 per user worldwide, while Amazon earned $752 per user. These figures are likely to rise in the future.  “For years, social media companies have told consumers that their products are free to the user. But that’s not true – you are paying with your data instead of your wallet,” said Senator Warner. “But the overall lack of transparency and disclosure in this market have made it impossible for users to know what they’re giving up, who else their data is being shared with, or what it’s worth to the platform. […]” Experts believe it is important for consumers to know the value of their data, because only when you know the value of a good you are able to value it.

On Monday, Warner and Rawley plan to introduce the  Designing Accounting Safeguards to Help Broaden Oversight And Regulations on Data (DASHBOARD) Act to the parliament for its first reading. It remains to be seen whether their plans will meet with the approval of the other senators.

FTC takes action against companies claiming to participate in EU-U.S. Privacy Shield and other international privacy agreements

24. June 2019

The Federal Trade Commission (FTC) announced that it had taken action against several companies that pretended to be compliant with the EU-U.S. Privacy Shield and other international privacy agreements.

According to the FTC, SecureTest, Inc., a background screening company, has falsely claimed on its website to have participated in the EU-U.S. Privacy Shield and Swiss-U.S. Privacy Shield. These framework agreements allow companies to transfer consumer data from member states of the European Union and Switzerland to the United States in accordance with EU or Swiss law.

In September 2017, the company applied to the U.S. Department of Commerce for Privacy Shield certification. However, it did not take the necessary steps to be certified as compliant with the framework agreements.

Following the FTC’s complaint, the FTC and SecureTest, Inc. have proposed a settlement agreement. This proposal includes a prohibition for SecureTest to misrepresent its participation in any privacy or security program sponsored by any government or self-regulatory or standardization organization. The proposed agreement will be published in the Federal Register and subject to public comment for 30 days. Afterwards the FTC will make a determination regarding whether to make the proposed consent order final.

The FTC has also sent warning letters to 13 companies that falsely claimed to participate in the U.S.-EU Safe Harbor and the U.S.-Swiss Safe Harbor frameworks, which were replaced in 2016 by the EU-U.S. Privacy Shield and Swiss-U.S. Privacy Shield frameworks. The FTC asked companies to remove from their websites, privacy policies or other public documents any statements claiming to participate in a safe harbor agreement. If the companies fail to take action within 30 days, the FTC warned that it would take appropriate legal action.

The FTC also sent warning letters with the same request to two companies that falsely claimed in their privacy policies that they were participants in the Asia-Pacific Economic Cooperation (APEC) Cross-Border Privacy Rules (CBPR) system. The APEC CBPR system is an initiative to improve the protection of consumer data moving between APEC member countries through a voluntary but enforceable code of conduct implemented by participating companies. To become a certified participant, a designated third party, known as an APEC-approved Accountability Agent, must verify and confirm that the company meets the requirements of the CBPR program.

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