Monday, July 26, 2010

Monday Risk Roundup -- Red Flags, Ethical Walls and Data Privacy

  • Red Flag Rule Still Waving? -- The FTC is still fighting to apply Red Flag Rules to law firms. Arguments hinge on the definition of "creditor" and the original intent of Congress when drafting the law.
  • Ethical Screens in the mainstream news -- A colleague forwarded a recent article in New York Times on "Chinese Walls" and their effectiveness in practice: "Chinese walls, say experts, can work as long as they’re carefully designed, vigilantly enforced and embraced by upper management."
  • Another Data Privacy Bill has been introduced in Congress. “Building Effective Strategies to Promote Responsibility Accountability Choice Transparency Innovation Consumer Expectations and Safeguards" Act (a.k.a. “BEST PRACTICES Act” or “Act”). [Complete Text]. The data privacy trend continues. Interestingly, the Information Law Group notes: "Unlike some bills that limit jurisdiction to only those entities regulated by the FTC (e.g. the DATA Act), the scope of entities regulated by the Act is broad and goes to the limits of Federal jurisdiction."

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