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As online services become an ever more important part of the American economy, the companies that create them increasingly find that security problems are hitting them where it really hurts: the bottom line.

lawyers security

"Last week, as we reported
here
, the California Supreme Court ruled it was
illegal for retailers to ask customers for their ZIP codes during credit card
transactions.

But did the behavior stop overnight? Some consumers and their plaintiffs are
saying no, and — yes — they’re filing suit.

According to
this LA Times story
, more than a dozen new
lawsuits have been filed against major chains that do business in California,
including Wal-Mart, Bed Bath & Beyond, Crate & Barrel and Victoria’s
Secret.

The California Supreme Court last week ruled unanimously that ZIP Codes were
“personal identification information,” and requesting them from consumers
violated a California consumer privacy law."

privacy lawyers CA ZIP

"Yesterday, the U.S. District Court for the District of Columbia issued the attached opinion upholding the American Bar Association's challenge to the FTC’s Identity Theft Red Flags Rule and enjoining the FTC from enforcing its Rule against lawyers. This memorandum opinion follows an October 29 oral argument and bench ruling. This ruling may have significance beyond the legal profession, and may limit the FTC’s ability to enforce its Red Flags Rule against professionals, retailers, health care providers and other businesses that bill their clients and customers in a manner similar to lawyers. "

Privacy Red Flag Rules Lawyers exempt FTC

The New York State Bar Association Monday became the latest bar group to protest new Federal Trade Commission rules requiring lawyers to become involved in preventing identity theft, calling the move unauthorized, unnecessary and destructive to the attorney-client relationship.

The State Bar's objections follow those submitted last week by the American Bar Association and the New York County Lawyers' Association.

In addition, the ABA reports that statewide bar associations in Arkansas, Colorado, Illinois, Ohio and Virginia have also contacted the FTC to express their opposition, with Oregon and Wisconsin expected to follow shortly.

The rules, which are slated to take effect on Aug. 1, implement a 2003 statute aimed at curbing identity theft.

The first shot was fired by the ABA, with its president, H. Thomas Wells, issuing a statement on June 22 denouncing the rules as imposing "an undue burden on law firms, especially solo practitioners," while accomplishing "very little."

Three days later, the New York County Lawyers delivered a report to the FTC objecting that the rules have "the potential to intrude on the profoundly confidential nature of the lawyer-client relationship that is now regulated by the states through the Rules of Professional Conduct."

On Monday New York State Bar President Michael E. Getnick sent a letter to FTC Chairman Jonathan D. Leibowitz decrying the new rules as "unnecessary and beyond the intent of Congress."

The 2003 statute, the Fair and Accurate Credit Transactions Act, 15 U.S.C. §1681(m)(e), requires financial institutions and creditors to develop protocols to detect and prevent identity theft. Those institutions are also required to take measures when "red flags" signaling identity fraud are detected, including possibly reporting the warning signs to law enforcement.

Red Flag Lawyers

Technology pervades everyone's daily life. Sometimes technology makes life simpler and at times it makes life more complicated, but as lawyers, our involvement with technology goes beyond simply our use of it.

All lawyers, and employment lawyers in particular, need to be aware of how technology can affect their practices and how to advise their clients to use, or in some cases not use, certain technologies in order to best protect clients' interests. This article will examine three areas where technology has impacted employment law and practice: e-mail communications with clients, claims asserted under the Computer Fraud and Abuse Act, and employer liability for accidents caused by an employee driving while using a cell phone.

Privacy Lawyers Employment Law Technology ATTORNEY-CLIENT PRIVILEGE