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Mobile Privacy: An Overview of Legal and Legislative Developments
A Complimentary LexisNexis® Webinar
May 8, 2013
Mary Ellen Callahan, Jenner & Block
Orrie Dinstein, Chief Privacy Leader and
Senior IT & IP Counsel, GE Capital
1LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
About the Speakers
Mary Ellen Callahan, Chair of Jenner & Block’s Privacy and
Information Governance Practice, has unique and broad
experience with interfacing the protection of privacy, civil rights,
and civil liberties with cybersecurity and national security issues.
A nationally recognized privacy attorney with over a decade of
outside counsel experience, she served as Chief Privacy Officer of
the U.S. Department of Homeland Security from 2009 until August
2012. She is also a prolific writer and speaker on cutting edge
commercial privacy issues.
Mary Ellen is a graduate of the University of Pittsburgh, Bachelor
of Philosophy, magna cum laude, and a Juris Doctor from the
University of Chicago.
2LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
About the Speakers
OrrieDinstein is the Chief Privacy Leader and Senior IT & IP Counsel at
GE Capital, a division of the General Electric Company. He has global
responsibility for data protection. Orrie works closely with the IT and
information security teams as well as other functions to establish
policies, procedures, processes and tools related to data privacy and
security and social media related matters. He is also the lead
intellectual property lawyer at GE Capital.
Prior to joining GE, Orrie was Counsel in the Intellectual Property &
Technology group of the New York office of King & Spalding, handling
litigation, licensing and corporate matters, and an associate at
Proskauer Rose LLP in New York. Before moving to the U.S., he worked
for several years in one of Israel's premier law firms, and was an
assistant professor at the Tel-Aviv University.
Orrie is a frequent speaker on privacy, social media and technology
matters and is the author of dozens of articles and book chapters on
technology and intellectual property related matters.
Orrie received an LL.M. law degree (intellectual property) from New
York University School of Law and is a graduate of the Hebrew
University of Jerusalem School of Law (LL.B.).
3LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Introduction
Overview of Legal and Legislative Developments in Mobile Privacy
• The Mobile Frontier
• Regulatory and Policy Updates
• Federal Trade Commission
• California Attorney General
• Securities and Exchange Commission
• Top 10 Takeaways from Recommendations
• International Policy Updates
• Litigation and Enforcement updates
• Proposed State and Federal Legislation
• Bring Your Own Device (BYOD) Impacts
4LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
The Mobile Frontier
• Mobile growth is exponential:
• 70% of shoppers use mobile phone while in retail store
• 24% of Black Friday sales were via mobile in 2012
• 58% increase of mobile malware reported in 2012 (Symantec)
• 28 percent of all mobile phone users and 48 percent of smartphone users
had used mobile banking in the past 12 months(Federal Reserve)
• Federal, state, and international regulators are pushing “privacy by design”
in the mobile apps arena
• Similarly, companies (employees) are trending towards allowing employee
use of personal mobile devices (“Bring Your Own Device”)
Regulatory and Policy Updates
6LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Domestic Regulatory and Policy Actors
• Federal Trade Commission
• Two reports on mobile apps privacy, focusing on kids
• Mobile Apps for Kids: Current Privacy Disclosures Are Disappointing
(Feb 2012)
• Mobile Apps for Kids: Disclosures Still Not Making the Grade (Dec
2012)
• FTC Recommendations: Mobile Privacy Disclosures: Building Trust
Through Transparency (Feb 2013)
• Updated dot Com Disclosures includes examples of mobile disclosure
• Report on mobile payments, Paper, Plastic, or Mobile? March 2013
• California Attorney General
• Joint Statement of Principles with Platform Providers, February 2012
• Letters to 100 App Developers on compliance with California Online
Privacy Protection Act (CalOPPA)
• CA AG Privacy on the Go Recommendations January 2013
• National Telecommunications and Information Administration
Multistakeholder process on mobile transparency
7LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Top Takeaways from “Recommendations”
• Transparency is the key – know what is happening on your
device/application, and explain it clearly to consumers
• Have privacy policies that encompass mobile activity; these policies should
be easily accessible (if possible, before download)
• “Sensitive” information – a/k/a personal information expanding to include
geolocation and device_id(others may be added)
• Consider providing “just in time” notices when accessing sensitive
information, or unexpected collection of info
• Customer service – have a mechanism for consumers to ask questions
about privacy
• Privacy by design incorporated into application/ data lifecycle
International Policy Updates
9LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Article 29 Working Party Recommendations
• More detailed transparency requirements
• Proscriptive requirements about what to include in privacy policy
(available before download)
• Only collect information that is “strictly necessary”
• Provide ability to delete data
• Policy statement that all U.S.-targeted apps need to comply with EU
guidance
Enforcement and Litigation Trends
11LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Federal Trade Commission
FTC Consent Order against mobile device manufacturer HTC America, Inc.,
February 22, 2013
1. The definition of covered information is very broad, including “individually
identifiable information” such as precise geolocation, static IP address,
MAC address, cookies, and almost all information on a particular mobile
device;
2. The FTC is continuing its pursuit of legal theories against “unfair” data
security practices whenever it perceives a security gap; and
3. Although this Consent Order involves a mobile device manufacturer, the
conclusions and content could be applied to many participants in the
mobile industry.
FTC Consent Order again social network Path, February 8, 2013
1. Deceptive trade practice for collecting mobile address book info, IP
address, and device ID without consent
2. Actual knowledge of collecting personal information about kids under 13
3. $800,000 fine for violating COPPA
12LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
California AG
• October 31, 2012, California AG sends letters to 100 app developers
regarding need to display privacy policy before application
download
• December 6, 2012 – California AG sues Delta Airlines for violation of
CalOPPA, Cal. Bus. & Prof. Code Section 22575(a)
• Delta has unique defense, Airline Deregulation Act federal
preemption
• Currently in pleadings stage in CA
• California AG has threatened new lawsuits; whether CalOPPA
applies to mobile applications as “online service” issue of first
impression
13LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Litigation Trends
Litigation is a growing privacy risk faced by mobile companies. In December
2012 alone, six new class actions filed alleging privacy violations using a
federal law as a basis for the claim.
Litigation and enforcement can include “unfair or deceptive trade practices”
relating to misstatement or omission of mobile app activity/information
sharing, or unfair data security, e.g.,
• Cal. Bus. & Prof. Code § 17200
• N.Y. Gen. Bus. Law § 349
Federal Telephone Consumer Protection Act, 47 U.S.C.§ 227
• Prohibits making calls using an “automatic telephone dialing system or
an artificial or prerecorded voice.” 47 U.S.C. § 227(b)(1). A “call”
includes text messages.
Legislation
15LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Legislation
• U.S. Congress
• Application Privacy, Protection, and Security Act of 2013 (APPS Act)
discussion draft (Rep. Hank Johnson)
• Franken Location Privacy bill from last Congress (2012)
• Markey Mobile Device Privacy bill from last Congress (2012)
• California legislature proposals
• 100 word privacy policy
• “Right to Know” – amends Shine the Light to include ways when device
IDs shared for marketing purposes
• California Medical Information Act proposal;” “*a]ny business that offers
application software that is designed to maintain medical information
*…+ for purposes of allowing the individual to manage his or her
information, or for the diagnosis, treatment, or management of a
medical condition of the individual . “
Bring Your Own Device
17LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
BYOD Overview
• What is BYOD?
• What should companies do to prepare for BYOD?
• Acceptable use policy / End User Agreement
• Device management; data deletion; audits; privacy
• Training
• Tech support / use of cloud
• Global issues
• What are the risks of BYOD?
• Security
• Discovery
• Loss of control over company data
18LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013
Question and Answer Session
Thank You!
Mary Ellen Callahan
Jenner & Block
mecallahan@jenner.com
OrrieDinstein
Chief Privacy Leader and Senior IT & IP Counsel
GE Capital
orrie.dinstein@ge.com

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LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments including the proposed APPS Act and BYOD

  • 1. Mobile Privacy: An Overview of Legal and Legislative Developments A Complimentary LexisNexis® Webinar May 8, 2013 Mary Ellen Callahan, Jenner & Block Orrie Dinstein, Chief Privacy Leader and Senior IT & IP Counsel, GE Capital
  • 2. 1LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 About the Speakers Mary Ellen Callahan, Chair of Jenner & Block’s Privacy and Information Governance Practice, has unique and broad experience with interfacing the protection of privacy, civil rights, and civil liberties with cybersecurity and national security issues. A nationally recognized privacy attorney with over a decade of outside counsel experience, she served as Chief Privacy Officer of the U.S. Department of Homeland Security from 2009 until August 2012. She is also a prolific writer and speaker on cutting edge commercial privacy issues. Mary Ellen is a graduate of the University of Pittsburgh, Bachelor of Philosophy, magna cum laude, and a Juris Doctor from the University of Chicago.
  • 3. 2LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 About the Speakers OrrieDinstein is the Chief Privacy Leader and Senior IT & IP Counsel at GE Capital, a division of the General Electric Company. He has global responsibility for data protection. Orrie works closely with the IT and information security teams as well as other functions to establish policies, procedures, processes and tools related to data privacy and security and social media related matters. He is also the lead intellectual property lawyer at GE Capital. Prior to joining GE, Orrie was Counsel in the Intellectual Property & Technology group of the New York office of King & Spalding, handling litigation, licensing and corporate matters, and an associate at Proskauer Rose LLP in New York. Before moving to the U.S., he worked for several years in one of Israel's premier law firms, and was an assistant professor at the Tel-Aviv University. Orrie is a frequent speaker on privacy, social media and technology matters and is the author of dozens of articles and book chapters on technology and intellectual property related matters. Orrie received an LL.M. law degree (intellectual property) from New York University School of Law and is a graduate of the Hebrew University of Jerusalem School of Law (LL.B.).
  • 4. 3LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Introduction Overview of Legal and Legislative Developments in Mobile Privacy • The Mobile Frontier • Regulatory and Policy Updates • Federal Trade Commission • California Attorney General • Securities and Exchange Commission • Top 10 Takeaways from Recommendations • International Policy Updates • Litigation and Enforcement updates • Proposed State and Federal Legislation • Bring Your Own Device (BYOD) Impacts
  • 5. 4LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 The Mobile Frontier • Mobile growth is exponential: • 70% of shoppers use mobile phone while in retail store • 24% of Black Friday sales were via mobile in 2012 • 58% increase of mobile malware reported in 2012 (Symantec) • 28 percent of all mobile phone users and 48 percent of smartphone users had used mobile banking in the past 12 months(Federal Reserve) • Federal, state, and international regulators are pushing “privacy by design” in the mobile apps arena • Similarly, companies (employees) are trending towards allowing employee use of personal mobile devices (“Bring Your Own Device”)
  • 7. 6LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Domestic Regulatory and Policy Actors • Federal Trade Commission • Two reports on mobile apps privacy, focusing on kids • Mobile Apps for Kids: Current Privacy Disclosures Are Disappointing (Feb 2012) • Mobile Apps for Kids: Disclosures Still Not Making the Grade (Dec 2012) • FTC Recommendations: Mobile Privacy Disclosures: Building Trust Through Transparency (Feb 2013) • Updated dot Com Disclosures includes examples of mobile disclosure • Report on mobile payments, Paper, Plastic, or Mobile? March 2013 • California Attorney General • Joint Statement of Principles with Platform Providers, February 2012 • Letters to 100 App Developers on compliance with California Online Privacy Protection Act (CalOPPA) • CA AG Privacy on the Go Recommendations January 2013 • National Telecommunications and Information Administration Multistakeholder process on mobile transparency
  • 8. 7LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Top Takeaways from “Recommendations” • Transparency is the key – know what is happening on your device/application, and explain it clearly to consumers • Have privacy policies that encompass mobile activity; these policies should be easily accessible (if possible, before download) • “Sensitive” information – a/k/a personal information expanding to include geolocation and device_id(others may be added) • Consider providing “just in time” notices when accessing sensitive information, or unexpected collection of info • Customer service – have a mechanism for consumers to ask questions about privacy • Privacy by design incorporated into application/ data lifecycle
  • 10. 9LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Article 29 Working Party Recommendations • More detailed transparency requirements • Proscriptive requirements about what to include in privacy policy (available before download) • Only collect information that is “strictly necessary” • Provide ability to delete data • Policy statement that all U.S.-targeted apps need to comply with EU guidance
  • 12. 11LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Federal Trade Commission FTC Consent Order against mobile device manufacturer HTC America, Inc., February 22, 2013 1. The definition of covered information is very broad, including “individually identifiable information” such as precise geolocation, static IP address, MAC address, cookies, and almost all information on a particular mobile device; 2. The FTC is continuing its pursuit of legal theories against “unfair” data security practices whenever it perceives a security gap; and 3. Although this Consent Order involves a mobile device manufacturer, the conclusions and content could be applied to many participants in the mobile industry. FTC Consent Order again social network Path, February 8, 2013 1. Deceptive trade practice for collecting mobile address book info, IP address, and device ID without consent 2. Actual knowledge of collecting personal information about kids under 13 3. $800,000 fine for violating COPPA
  • 13. 12LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 California AG • October 31, 2012, California AG sends letters to 100 app developers regarding need to display privacy policy before application download • December 6, 2012 – California AG sues Delta Airlines for violation of CalOPPA, Cal. Bus. & Prof. Code Section 22575(a) • Delta has unique defense, Airline Deregulation Act federal preemption • Currently in pleadings stage in CA • California AG has threatened new lawsuits; whether CalOPPA applies to mobile applications as “online service” issue of first impression
  • 14. 13LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Litigation Trends Litigation is a growing privacy risk faced by mobile companies. In December 2012 alone, six new class actions filed alleging privacy violations using a federal law as a basis for the claim. Litigation and enforcement can include “unfair or deceptive trade practices” relating to misstatement or omission of mobile app activity/information sharing, or unfair data security, e.g., • Cal. Bus. & Prof. Code § 17200 • N.Y. Gen. Bus. Law § 349 Federal Telephone Consumer Protection Act, 47 U.S.C.§ 227 • Prohibits making calls using an “automatic telephone dialing system or an artificial or prerecorded voice.” 47 U.S.C. § 227(b)(1). A “call” includes text messages.
  • 16. 15LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Legislation • U.S. Congress • Application Privacy, Protection, and Security Act of 2013 (APPS Act) discussion draft (Rep. Hank Johnson) • Franken Location Privacy bill from last Congress (2012) • Markey Mobile Device Privacy bill from last Congress (2012) • California legislature proposals • 100 word privacy policy • “Right to Know” – amends Shine the Light to include ways when device IDs shared for marketing purposes • California Medical Information Act proposal;” “*a]ny business that offers application software that is designed to maintain medical information *…+ for purposes of allowing the individual to manage his or her information, or for the diagnosis, treatment, or management of a medical condition of the individual . “
  • 17. Bring Your Own Device
  • 18. 17LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 BYOD Overview • What is BYOD? • What should companies do to prepare for BYOD? • Acceptable use policy / End User Agreement • Device management; data deletion; audits; privacy • Training • Tech support / use of cloud • Global issues • What are the risks of BYOD? • Security • Discovery • Loss of control over company data
  • 19. 18LexisNexis Webinar: Mobile Privacy: An Overview of Legal and Legislative Developments– May 8, 2013 Question and Answer Session Thank You! Mary Ellen Callahan Jenner & Block mecallahan@jenner.com OrrieDinstein Chief Privacy Leader and Senior IT & IP Counsel GE Capital orrie.dinstein@ge.com