Increasing oversight of tech companies, particularly in the realm of consumer privacy, has been a rare example of bipartisan agreement. Despite data privacy being a growing concern for consumers, however, there has been relatively little federal policymaking. To counteract this lack of action, some states have stepped in to fill this void—and have enacted policies that could have large impacts on how businesses operate. The rapid rate at which these laws are being enacted – eleven have been enacted– indicates states are taking an increasingly protective view of consumers’ data privacy. Businesses need to be prepared to comply with these new mandates, or risk costly enforcement measures.
regulatory compliance
Commercial Fishermen Urge Supreme Court to Reel In Agency Authority
By Jake R. Butwin & Allan Bloom on
The U.S. Supreme Court has agreed to hear a case challenging its landmark 1984 decision in Chevron v. Natural Resources Defense Council. The high court’s ruling could have important implications on federal officials’ discretion to regulate in many facets of American life.
Banks as Gatekeepers Against Fraud: Customer Protection and the So-Called Quincecare Duty in the UK
By Dorothy Murray, Julia Bihary & Hena M. Vora on
Who can be held responsible when a rogue actor directs payment from a company’s bank account? Unless discovered quickly, stolen funds are usually quickly spirited away from easy recovery. Victims of fraud therefore look for other sources of compensation, including the bank itself who executed the instruction. In England, when banks and financial institutions have reasonable grounds to believe that a payment instruction is an attempt to misappropriate a customer’s funds, they owe a duty of care to that customer to refrain from making or executing the order and make necessary inquiries before proceeding.
Tech Takeaways: SCOTUS Weighs in on Pivotal Tech Cases
The Supreme Court heard oral argument last week in cases that will have extensive implications for online platforms, and, more broadly, for internet speech across the board. Gonzalez v. Google, in particular, may result in a first-of-its-kind clarification of the scope of 47 U.S.C. § 230.
Defining a “Good Faith” Director: Key Takeaways from Recent Court Rulings on Corporate Board Oversight
By Briana Seyarto Flores on
Corporate boards are subject to a duty of oversight, as part of their duty of loyalty to their company. As outlined by Delaware’s famously stringent Caremark standard, pleading a violation of that duty is often difficult. However, the Delaware Court of Chancery has issued several recent opinions addressing duty of oversight claims where they held the plaintiffs successfully met the Caremark standard. These decisions serve as important reminders for corporate boards to thoughtfully carry out their oversight duties, in order to ensure that their internal controls, reporting systems, and other oversight-related practices are sufficiently comprehensive.