On January 6, 2015, Federal Trade Commission (FTC) Chairwoman Edith Ramirez delivered a speech discussing best practices for companies in the emerging market of the “Internet of Things,” which refers to the wireless interconnectivity of everyday devices, from home appliances to medical devices. Such devices are quickly becoming pervasive: In 2015, the number of interconnected devices worldwide is expected to reach 25 billion.

What’s the News?

In October 2014, California Attorney General Kamala Harris released the California Data Breach Report, the state’s most recent analysis of data security threats facing businesses and consumers. The Report, which notes a dramatic 28 percent increase in data breaches in California in 2013, serves as a reminder to businesses nationwide of the constant threat of increasingly sophisticated cybercriminals — and the need for new and better approaches to safeguarding sensitive information.

Arent Fox Complex Litigation partner Joshua Fowkes wrote an article that was published by Corporate Counsel which focuses on a recent ruling involving the data breach of Target Corp. that gives banks a green light to continue with their class action suits against the company.

What Made News?

Ikea recently argued that a class action filed against it based on alleged violations of California’s Song-Beverly Act should not be maintained. Ikea admits that its sales registers prompt sales associates to collect ZIP codes from consumers, but it argues that associates often bypass the prompt. Because it does not have a policy to collect ZIP codes, Ikea claims that it cannot be held liable for the alleged illegal ZIP code collections.

The Obama Administration has announced a series of initiatives to address the growing number of data breaches at major retailers. Millions of Americans and thousands of retailers have been the victims of data breaches over the past year, and consumers and legislators alike are increasingly looking for ways to secure sensitive data such as payment card account numbers.

FTC Brings First Case Under Federal Negative Option Law

What’s Making News?

The Federal Trade Commission (FTC) recently brought its first case under the Restore Online Shoppers’ Confidence Act (ROSCA), a 2010 federal law that prohibits online sellers from charging consumers in an Internet transaction unless the seller has clearly disclosed all material terms of the transaction and obtained consumers’ express informed consent.

What’s the News?

In testimony before the US Senate Judiciary Committee earlier this summer, the Federal Trade Commission (FTC) lent its support to federal legislation that would require businesses to obtain “affirmative express consent” from consumers before collecting geolocation data from mobile devices.

What Made News?

Walmart recently argued that the US District Court for the Eastern District of California should not grant class certification in a suit alleging that Walmart’s data collection practices violate California’s Song-Beverly Credit Card Act of 1971 (Song-Beverly Act).

What’s Making News?

After a spate of high-profile data security breaches, many legislators, businesses, and consumers are asking what can be done to prevent such security lapses and who should be held responsible. The increased attention to data security has led to a flurry of recent activity in state legislatures and in Washington.