Following the first enforcement actions by local authorities in Shantou and Chongqing for violations of the new Network Security Law that came into effect this year, authorities in China have recently shown a clear initial focus with several new cases targeting provisions of the law that require monitoring of platform content. As of the start of October 2017, enforcement actions by authorities in China have targeted platform content violations in nearly 70 percent of all actions under the new provisions of the data protection rules.

 

Continue Reading China Data Protection Enforcement Update – A Focus on Platform Content

Today, China’s much anticipated Network Security Law comes into effect after two years of review, revisions over three drafts and a public commenting process. The law is a historical development for China’s legislative coverage of information security and data protections. It also represents one of the strictest approaches in any jurisdiction worldwide, and a continuation of a broader effort at demonstrating the government’s cyber-sovereignty goals through control and regulation of data and the internet.

Overview of the Network Security Law

Commonly referred to as the “Cybersecurity Law,” the new piece of legislation has a broad scope and covers a range of issues related to data privacy, security and cross-border transfers, including:

  • Increasing security measures and strengthening data security through a variety of specific obligations
  • Ensuring consent for collection of personal information through the principles of legality, proper justification and necessity
  • Screening equipment and products for security testing and certification
  • Ensuring real-name registration for users
  • Strengthening requirements to cooperate with government agencies during criminal investigations or to protect national security
  • Requiring personal information to be stored in China under some circumstances
  • Increasing confidentiality measures for user information
  • Setting up a complaint and reporting platform for network security

Continue Reading China’s Network Security Law Comes into Effect: What It Means for Your Company

The mission of the French data protection authority—the Commission Nationale Informatique et Libertés (CNIL)—is “to protect personal data, support innovation, [and] preserve individual liberties.”

In addition to its general inspections, every year the CNIL establishes a different targeted-inspection program. This program identifies the specific areas that CNIL’s controls will concentrate on for the following year. The 2014 inspection program was focused on everyday life devices, such as online payment, online tax payment and dating websites, among other things.

On May 25, 2015, the CNIL announced its 2015 inspection program and identified a focus on six issues in particular: contactless payment, Driving Licenses National File (Le Fichier National des Permis de Conduire), the “well-being and health” connected devices, monitoring tools used for attendance in public places, the treatment of personal data during evaluation of psychosocial risks and the Binding Corporate Rules.

The last two issues caught our attention:

  • Treatment of personal data during evaluation of psychosocial risks: Since 2008, many companies have been investigating psychosocial risks within the workplace in order to provide a more stress-free environment. This practice, however, raises issues concerning the employee’s right not to share private information with the employer. The CNIL will try to identify which prior investigations may have jeopardized (or may still be jeopardizing) the employee’s rights to privacy.
  • Binding Corporate Rules: Companies seeking to export data outside of the European Union (EU) may adopt a voluntary set of data-protection rules within their corporate group called Binding Corporate Rules (BCR). These BCRs are intended to provide a level of privacy and data protection within the entire corporate group equivalent to the one found under EU law. So far, 68 companies have adopted BCRs. Through its 2015 inspection program, the CNIL wants to give the BCRs a closer look, making sure that the means and devices used are in compliance with French law.

In addition to focusing its 2015 inspection program on BCR compliance, the CNIL also announced, earlier this year, the simplification of intra-group data transfers. Prior to simplification, companies whose BCRs had been approved by the CNIL were also required to obtain the CNIL’s approval for each new type of transfer. The CNIL has since declared that a new, personalized “single decision” will be given to companies with approved BCRs. In return, the companies must keep an internal record of all transfers detailing certain information (the general purpose of each transfer based on the BCR; the category of data subjects concerned by the transfer; the categories of personal data transferred; and information on each data recipient) in accordance with the terms of the single decision issued.

With respect to its targeted inspection program, the question still remains: How many inspections will the CNIL conduct in 2015? In 2014, the CNIL performed a total number of 421 inspections. The CNIL declares that, in 2015, the objective is to achieve 550 inspections. However, only 28 percent of the CNIL’s inspections typically result from the annual inspection program. Forty percent are initiated by the CNIL itself and the remaining quarter are initiated on request. Using these percentages, if the CNIL reaches its objective of 550 controls, we expect that it will likely have performed somewhere around 154 inspections as result of the 2015 inspection program.

Data security breaches affecting large segments of the U.S. population continue to dominate the news. Over the past few years, there has been considerable confusion among employers with group health plans regarding the extent of their responsibility to notify state agencies of security breaches when a vendor or other third party with access to participant information suffers a breach. This On the Subject provides answers to several frequently asked questions to help employers with group health plans navigate the challenging regulatory maze.

Read the full article.

The country awoke to what seems to be a common occurrence now: another corporation struck by a massive data breach.  This time it was Anthem, the country’s second largest health insurer, in a breach initially estimated to involve eighty million individuals.  Both individuals’ and employees’ personal information is at issue, in a breach instigated by hackers.

Early reports, however, indicated that this breach might be subtly different than those faced by other corporations in recent years.  The difference isn’t in the breach itself, but in the immediate, transparent and proactive actions that the C-Suite took.

Unlike many breaches in recent history, this attack was discovered internally through corporate investigative and management processes already in place.  Further, the C-Suite took an immediate, proactive and transparent stance: just as the investigative process was launching in earnest within the corporation, the C-Suite took steps to fully advise its customers, its regulators and the public at-large, of the breach.

Anthem’s chief executive officer, Joseph Swedish, sent a personal, detailed e-mail to all customers. An identical message appeared in a widely broadcast press statement.  Swedish outlined the magnitude of the breach, and that the Federal Bureau of Investigation and other investigative and regulatory bodies had already been advised and were working in earnest to stem the breach and its fallout.  He advised that each customer or employee with data at risk was being personally and individually notified.  In a humanizing touch, he admitted that the breach involved his own personal data.

What some data privacy and information security advocates noted was different: The proactive internal measures that discovered the breach before outsiders did; the early decision to cooperate with authorities and press, and the involvement of the corporate C-Suite in notifying the individuals at risk and the public at-large.

The rapid and detailed disclosure could indicate a changing attitude among the American corporate leadership.  Regulators have encouraged transparency and cooperation among Corporate America, the public and regulators as part of an effort to stem the tide of cyber-attacks.  As some regulators and information security experts reason, the criminals are cooperating, so we should as well – we are all in this together.

Will the proactive, transparent and cooperative stance make a difference in the aftermath of such a breach?  Only time will tell but we will be certain to watch with interest.