WHAT YOU NEED TO KNOW IN A MINUTE OR LESS

Reported incidents of data breaches have reached record levels over the last two years1)Experian Data Breach Resolution. (2021). Eighth Annual Study: Is Your Company Ready for a Big Data Breach? Ponemon Institute.. Given this undeniable reality, a data security incident response plan is no longer a luxury; it is a vital tool in every company’s larger crisis management plan. A well-thought-out and thorough response plan can not only significantly reduce the confusion that often follows a data security incident, but can also reduce the pitfalls that often lead to regulatory scrutiny and putative class actions in the United States and the fairly recent “group actions” in the European Union.

In a minute or less, here are the essential components of a working incident response plan.

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References

References
1 Experian Data Breach Resolution. (2021). Eighth Annual Study: Is Your Company Ready for a Big Data Breach? Ponemon Institute.

‘Specialist in new technologies’, K&L Gates LLP‘s team has an outstanding reputation for legal advice on innovative technologies and data-related concerns. Claude-Etienne Armingaud and Raphael Bloch are recognised as ‘exceptional lawyers who miss no details and who know their fields to perfection’. Claude-Etienne Armingaud has developed particular knowledge of multijurisdictional transactional matters dealing with IT outsourcing and data protection for blockchain and fintech, connected cars, and big data services.

Leading individuals: Claude-Etienne Armingaud – K&L Gates LLP

Practice head(s): Claude-Etienne Armingaud

Other key lawyers: Raphael Bloch

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Transfer from the UK

On 21 March 2022, the United Kingdom finalized the adoption of its own version of the European Union’s (EU) Standard Contractual Clauses (SCC), a contractual mechanism aiming at securing personal data protected under a data protection framework to third countries not deemed to offer an “adequate” level of data protection.

On 16 July 2020, while the United Kingdom was still an EU Member State, the European Court of Justice (CJEU), through its Schrems II decision, added new requirements to the SCC (see our Alert here), relating to safeguards against access to personal data protected under EU’s General Data Protection Regulation (GDPR) by intelligence agencies. As a consequence, the European Union adopted new versions of the SCC in June 2021 (see our Alert here), but the United Kingdom having finalized Brexit in the meantime, did not adopt the new SCCs, instead operating the previous versions of the SCC, and an updated document for transfers initiated under the UK GDPR was needed.

The UK’s draft International Data Transfer Agreement (IDTA) and Addendum  were laid before Parliament on 22 February 2022 and finally adopted on 21 March 2022 without changes. The IDTA is an equivalent contract to the SCC, but uses a tabular approach in place of the modules used by the SCC. The alternative instrument that was introduced, the Addendum, provides UK data exporters with a semi-seamless mechanism where they can leverage their existing SCC for transfers initiated under the EU GDPR. The Addendum consists of a form effectively selecting the relevant options of the SCC and amending EU terminology and legal references to UK-specific ones. It is likely to be more widely used than the IDTA, particularly as data exporters with operations in both the UK and the EU will look to reduce the number of contracts they need to enter into. Overall, the IDTA and the Addendum represent a narrowing in the divergence that had appeared recently in the differing safeguards required by the UK and the EU for data exporters engaged in personal data transfers from their respective jurisdictions.

As a reminder:

  • Transfers between the EU and the UK do not need any specific measures as per the adequacy decision currently in place (see our Alert here)
  • all data transfer agreements under the EU GDPR based on the previous versions of the SCC will need to be migrated to the new SCC on or before 27 December 2022; and
  • all data transfer agreements under the UK GDPR executed on or before 21 September 2022 on the basis of any Transitional Standard Clauses (based on the previous versions of the SCC) will need to be migrated to an IDTA or Addendum on or before 21 March 2024.

Transfer from the EU to the US: En Route for Schrems III?

On 25 March 2022, European Commission President Ursula von der Leyen and United States President Joe Biden announced  an “agreement in principle” on a new EU-US data sharing system, expected to replace the Privacy Shield framework invalidated under the CJEU’s Schrems II decision in 2020 (see our Alert here).

As no draft of that “agreement” has been circulated, the existing grievances against U.S. intelligence agencies’ access to personal data protected under GDPR remain and concerns relating to ‘effective legal remedies’ available to individuals protected under GDPR (Data Subjects) will need to be addressed. Data activist Maximilian Schrems and his organization, noyb, already announced that they would closely monitor the development of this new framework and challenge any decision which would not abide by the CJEU’s 2020 Schrems II decision.

While such a political statement is encouraging for the future of international data transfers, this announcement should not be construed as relieving companies subject to GDPR’s territorial scope (see our Alert here) from implementing adequate data transfer mechanisms until more concrete elements are adopted.

Such transfer mechanisms notably include:

K&L Gates’ global data protection team (including in each of our European offices) remains available to assist you in achieving the compliance of your data transfers at a global level.

First publication: K&L Gates Hub in collaboration with Noirin McFadden, Thomas Nietsch and Keisha Phippen

Event: IAPP Data Protection Intensive: France

Date: 18 March 2022

Time: 8:00 AM ET

Location: Le Méridien Etoile, 81 Boulevard Gouvion Saint-Cyr 75848 Cedex 17, 75017 Paris

The dynamics in online advertising have always been head spinning — but the latest developments promise to go beyond. The slow death of third-party cookies is shaking up the industry and raises new questions privacy professionals have to grapple with. With the upcoming e-Privacy Regulation, a new law is taking shape. And to add even more complexity, French lawmakers are eager to push through a new privacy law for online marketing based on the old e-Privacy Directive. Hear from industry experts what to expect and how to navigate the uncertainties. This panel will also address cutting edge questions like cookie walls, nudging, or dark patterns.

Quoted by Global Data Review:

Claude-Étienne Armingaud, a partner at K&L Gates in Paris, said the decision would have little impact in practice.

“The new sections adopted in July 2021 are implementing specific and targeted data retention requirements which should therefore comply with both the ECJ decisions and the Constitutional Council decision of today,” he said.

“So, if anything, it’s a tardy decision that was expected and confirmation that the Government did well to anticipate this.”

Read full article here.

K&L Gates ranked “Highly Recommended – Band 1” with Claude-Etienne Armingaud.

Source: Leaders League

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European regulators unofficially announced the major theme of this new year, through the release of several decisions pertaining to cookies and other tracking technologies in the first 10 days of 2022.

As the General Data Protection Regulation (GDPR) is approaching the fourth anniversary of its entry into force, the ePrivacy Regulation—a companion piece to address online communication and that was supposed to be adopted at the same time—remains in the limbo of the European legislative process.

In the meantime, the effects of the Schrems II decision of 16 July 2020 (see our alert here), which canceled the Privacy Shield and placed stricter requirements on the use of standard contractual clauses, continues to ripple through data protection compliance efforts of companies worldwide.

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Join us on 19 January 2022 – 1.30pm GMT

Host – Paul Hampton, Senior Product Manager, Thales

Speakers :

  • Stewart Room, Partner, Global Head of Data Protection & Cyber Security, DWF
  • Claude-Étienne Armingaud, CIPP/E, Partner – Practice Group Coordinator | Data Protection, Privacy and Security, K&L Gates LLP
  • Ray Walshe, Director and EU Observatory for ICT Standards, Dublin City University

Most organisations have felt the impact of accelerating their cloud adoption strategies in the past two years. While beneficial to the enterprise in numerous areas, such as faster application development, combined with the ability to experiment and quickly leverage elasticity and resiliency, these benefits have also brought significant new security challenges.

Today, enterprises are grappling with security issues never before faced or addressed. The debate of shared responsibility between provider and customer, data sovereignty, the utopian cloud environment and the constant changing of threat models to name a few.

This session will draw on the recent findings of the 2021 Thales Cloud Security Report to discuss how European enterprises are handling the data security repercussions of an accelerated cloud deployment.

Areas for Discussion

• The widespread use of SaaS within the enterprise

• Cloud complexity with ‘lift & shift’, multicloud, and hybrid

• Encryption in the cloud is not as widespread as enterprises think

• How successful are enterprises in maintaining compliance and avoiding breaches in the cloud

• Who owns responsibility for the security of data in the cloud

More information and registration here

Following the conclusion of the adequacy talks in March 2021, the European Commission has adopted on 17 December 2021 an adequacy decision addressing the transfers of personal data to the Republic of Korea under the General Data Protection Regulation (GDPR) and the Law Enforcement Directive.

Both texts prohibit the transfer of personal data to “third countries” unless (a) the destination country benefits from (i) an adequacy decision or (ii) appropriate safeguards, such as standard contractual clauses (see our alert here) or codes of conduct (see our alert here); or (b) one of the limited derogations under Article 49 GDPR applies.

With regards to the adequacy talks, the Republic of Korea agreed on the implementation of additional safeguards. Accordingly, the reform of Republic of Korea’s data protection framework (the Personal Information Protection Act) in August 2020, the several addition safeguards have been implemented including transparency provisions and enforcement power strengthening of the Personal Information Protection Commission (§70).

The Republic of Korea adequacy decision complements the Free Trade Agreement (FTA) of July 2011 and allows a seamless flow of personal data between the Republic of Korea and the European Union.

Unlike the UK adequacy decision which contains a sunset clause (see our alert here), the Republic of Korea adequacy decision is not limited in time. However, pursuant to Article 45.3 GDPR, the European Commission carry out a first review of the decision after three years to evaluate any evolution in the Republic of Korea data protection framework, that would lead to divergence with the EU regulations (§220). 

The Republic of Korea now belongs to the increasing group of third countries benefiting from an adequacy decision (including, since GDPR’s entry into force, Japan and the UK).

The firm’s global data protection team (including in each of our European offices) remains available to assist you in achieving the compliance of your data transfers at global levels.

First publication: K&L Gates Hub in collaboration with Andrew L. Chung, Camille Scarparo and Eric Yoon

On 6 October 2021, the Court of Justice of the European Union (CJEU or the Court) issued a judgment in case C-882/19 following a request for a preliminary ruling by the Court of Appeal of Barcelona (the Referring Court). 

The CJEU´s ruling could prove to have a real practical impact for victims of competition law breaches since it may open the door to suing a domestic subsidiary of a cartel member. The Court ruled that the victim of an anticompetitive practice had to be able to claim compensation from the subsidiary established in its member state for the damage caused by the conduct of the parent company (which had been sanctioned by the Commission), provided that: 

  • The subsidiary and the parent company together characterize a single economic unit; and
  • There was a concrete link between the economic activity of that subsidiary and the subject matter of the competition law infringement for which the parent company has been held liable.

The EU Commission had imposed a record fine of €2.93 billion on the leading European truck manufacturers for a 14-years’ duration cartel involving agreements on the sale prices of trucks (decision adopted on 19 July 2016). One of the cartel members was the parent company of the defendant in the case at hand.

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