Federal Court Upholds U.S. Federal Trade Commission's Authority Over Unfair Data Security Practices Under FTC Act

Scott L. Vernick was quoted in The Legal Intelligencer article, "Did UPMC Data Breach Ruling Lock Plaintiffs Out of State Court?" on January 23, 2017.

California's 2026 legislative session concluded with Governor Newsom signing several landmark privacy and AI bills into law, including comprehensive child safety measures, AI auditor oversight frameworks, and expanded data protection requirements. How will these new regulations reshape digital advertising, workplace AI deployment, and online platform obligations for businesses operating in California?

On September 15, the Federal Trade Commission ("FTC") issued a policy statement ("Statement") addressing the scope of its Health Breach Notification Rule ("Rule") on health apps and connected devices.

Meta Platforms has agreed to pay $17 billion over ten years to resolve multistate litigation alleging the company engineered Facebook and Instagram to addict minors while concealing the risks. Beyond the historic financial penalty, the settlement mandates sweeping platform changes including default usage limits, overnight lockouts, and parental controls for users under eighteen.

California's legislature has sent a comprehensive package of privacy, AI, and advertising bills to Governor Newsom's desk, with decisions due by September 30, 2026. The legislation addresses sensitive personal information protections, data broker obligations, AI-powered chatbot regulations, and digital replica rights, potentially reshaping how businesses handle consumer data and automated decision-making systems. Will these bills become law and set new national standards for technology regulation?

Target announced the compromise payment card information taken in-store between November 27 and December 15, 2013

In the last few months, California and New Jersey enacted legislation to protect children online: California’s 13-bill package targets risks to children arising from emerging technologies, while New Jersey’s 3-bill package includes an age-appropriate design code. Despite their differences, these laws share a common focus on protecting children as technology evolves.

Multiple organizations have recently disclosed significant data breaches affecting thousands of individuals, with compromised information ranging from basic contact details to highly sensitive medical records and financial data. The incidents span various sectors including healthcare, insurance, and professional services, raising questions about the scope of exposure and potential remedies for affected individuals.

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California's Senate Bill 690 eliminates the private right of action for pen register claims under CIPA when violations arise from website or mobile app tracking technologies, leaving enforcement solely to the Attorney General. The bill applies retroactively to claims filed after January 1, 2025, and awaits Governor Newsom's signature with an operative date of January 1, 2027.

The Code is voluntary, but it will likely become an important reference point for demonstrating compliance with Article 50 of the AI Act.

The Ninth Circuit Court of Appeals vacated a preliminary injunction against Perplexity AI, determining that when an AI agent acts at a user's direction, it is the user—not the AI company—who "accesses" computer systems under federal and California computer fraud statutes. This landmark appellate decision addresses how existing computer-access laws apply to agentic artificial intelligence and has significant implications...

The European Commission has proposed replacing the EU's three core procurement directives with a single, directly applicable Regulation that would fundamentally reshape how companies compete for public contracts across Member States. The reform introduces mandatory quality criteria thresholds, embeds ESG considerations as evaluation factors, and establishes new security and European-preference provisions that could restrict participation based on ownership, supply chain exposure, and strategic dependencies.

A federal court has struck down New York's Climate Change Superfund Act, which sought to recover $75 billion from fossil fuel companies based on historical emissions. The ruling found the Act preempted by the Clean Air Act, marking the first judicial decision on state climate superfund legislation and establishing that EPA's rescission of the endangerment finding does not alter preemption analysis.

Mexico's comprehensive anti-money laundering framework has undergone a sweeping transformation through Acuerdo 115/2026, introducing mandatory risk-based methodologies, enhanced client due diligence protocols, and automated monitoring requirements. With implementation deadlines beginning March 1, 2027, obligated parties conducting vulnerable activities face compressed timelines to overhaul their compliance infrastructure while navigating heightened enforcement risks and stricter beneficial ownership thresho

The European Commission has initiated infringement procedures against 20 EU Member States for failing to transpose the EmpCo Directive by the March 27, 2026 deadline. This directive aims to combat greenwashing by requiring substantiation of environmental claims and third-party certification for sustainability labels, with full implementation expected by September 27, 2026.

On December 3, a federal court in the Central District of California granted plaintiffs' request for preliminary approval of a proposed $22 million settlement ...

The European Commission has adopted final Guidelines on exclusionary abuses of dominance under Article 102 TFEU, introducing a "workable effects approach" that narrows presumptions while expanding guidance on objective justifications and recognizing sustainability benefits as valid efficiencies for the first time. These Guidelines replace the 2008 Enforcement Priorities Guidance and are expected to significantly impact enforcement practices across EU Member States and beyond, particularly for digital market

The user of defective goods benefi ts from several causes of action against the vendor or manufacturer.

The IRS has proposed new regulations that would impose nondiscrimination requirements on private schools seeking to maintain their tax-exempt status under section 501(c)(3). These regulations would prohibit policies discriminating on the basis of race, color, or national or ethnic origin in admissions, financial assistance, and other school programs. The proposed rules raise important questions about how private schools can structure their programs while complying with federal tax law requirements.