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Following the GDPR, the California Consumer Privacy Act (CCPA) and other newly introduced state privacy legislation, the Washington Senate has proposed its own GDPR-like consumer privacy act. Washington Senate Bill 5376, the Washington Privacy Act, as first proposed on January 22, 2019 and substituted February 24, 2019 applies “not only to technologies and products of today but to technologies and products of tomorrow.” If approved, it will go into effect July 31, 2021.

The Act will apply to legal entities that conduct business in Washington or produce products or services that intentionally target Washington residents. These entities must also either (1) control or process data of at least 100,000 consumers or (2) derive 50 percent gross revenue from the sale of personal information and process or control personal information of at least 25,000 consumers. Under the Act, personal data is any information that is linked or reasonably linkable to an identified or identifiable natural person.Continue Reading Proposed Washington Privacy Act Seeks to Protect Consumer Data Privacy from Current and Future Technology Advancements

For the first time in its enforcement history, the Consumer Financial Protection Bureau (“CFPB”) took action against a company for deceiving consumers about the company’s data security practices. The CFPB found that Dwolla, Inc. (“Dwolla”), an online payment system, made numerous false promises about the strength and extent of its data security practices. The CFPB’s action is also notable because the agency acted preemptively — Dwolla had never detected a data breach and no consumer data had been reported stolen.

The CFPB found that Dwolla claimed on its website and in direct communications with consumers that its data security practices “exceed” or “surpass” industry security standards; but, in reality, Dwolla failed to employ reasonable security measures to protect consumer data. In addition, Dwolla claimed that “all information is securely encrypted and stored” and that its mobile applications were safe and secure. However, the CFPB found that Dwolla did not encrypt certain sensitive consumer information and released applications to the public before testing that they were secure. The agency found several other examples of statements Dwolla made that could not be established as true.
Continue Reading There’s a new privacy boss in town