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New York City’s New Biometric Information Law Governs Collection and Use of Consumer Health Data

For risk professionals, the COVID-19 pandemic has increased the importance of ensuring customer and employee safety measures are incorporated into operations, processes and future strategies. As many businesses reopen from pandemic shutdowns or return from remote work arrangements, some enterprises are now exploring both the effectiveness and the risks associated with conducting health screenings that collect biometric information and other personal health data.

This month, New York City released the Biometric Information Law, a new measure that goes into effect on July 9 and imposes disclosure requirements on businesses that collect consumer biometric information.

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It also sets parameters on what they can do with that information, most importantly, prohibiting the exchange of biometric information for anything of value.

As detailed in recent client notice from the law firm Reed Smith, highlights from the law include:

  • The measure requires a business that “collects, retains, converts, stores or shares biometric identifier information of customers” to place a “clear and conspicuous sign” near all consumer entrances that, in plain language, discloses the collection, retention or sharing of biometric information.
  • It stipulates that it is unlawful to “sell, lease, trade, share in exchange for anything of value or otherwise profit from the transaction of biometric identifier information.”
  • It establishes “an ‘aggrieved’ consumer’s private right of action,” meaning that “[a]ny person who is aggrieved by a violation by this chapter is entitled to commence an action to enforce its protections.”

There are key exclusions, however, as “governmental agencies, employers, or agents” are expressly excluded from compliance with any provision.

New York is not the only state to enact a law attempting to govern how organizations can use biometric information. Arkansas, California, Illinois, Texas and Washington have also set guidelines for businesses.

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Indeed, the recent Risk Management Magazine article “Preparing for Biometric Litigation from COVID-19” addresses the imminent and critical questions businesses must answer when collecting and handling such data.

Sensitivities surrounding the confidentiality of biometric and other health information are not new in certain industries, such as healthcare. Further, even before COVID-19, risk professionals were already grappling with the risks associated with new biometric technologies and the data collected, especially with regard to facial recognition, wearables and even the rise in popularity of telehealth.

Now, with every organization on high alert about infectious diseases and how quickly they can interrupt business, health and safety have become top priorities for every risk professional in every sector.

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As risk professionals look to new technology for help with these concerns, monitoring the emerging regulation and security risks around health and biometric technology will become increasingly critical in balancing benefit and risk to their organizations.
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Data security will continue to remain a significant threat, but New York’s Biometric Information Law should serve as a reminder that what the organization does with that data can also have a lasting impact on the enterprise’s reputation and consumer trust.

For more information to help risk professionals manage new health technology and data, check out these articles from Risk Management Magazine:

On Data Privacy Day, Catch Up on These Critical Risk Management and Data Security Issues

Happy Data Privacy Day! Whether it is cyberrisk, regulatory risk or reputation risk, data privacy is increasingly intertwined with some of the most critical challenges risk professionals face every day, and ensuring security and compliance of data assets is a make or break for businesses. In Cisco’s new 2021 Data Privacy Benchmark Report, 74% of the 4,400 security professionals surveyed saw a direct correlation between privacy investments and the ability to mitigate security losses. The current climate is also casting more of a spotlight on privacy work, with 60% of organizations reporting they were not prepared for the privacy and security requirements to manage risks with the shift to remote work and 93% turning to privacy teams to help navigate these pandemic-related challenges. Amid COVID-19 response, headline-making data breaches and worldwide regulatory activity, data privacy is also a critical competency area for risk professionals in executive leadership and board roles, with 90% of organizations now asking for reporting on privacy metrics to their C-suites and boards.

“Privacy has come of age—recognized as a fundamental human right and rising to a mission-critical priority for executive management,” according to Harvey Jang, vice president and chief privacy officer at Cisco. “And with the accelerated move to work from anywhere, privacy has taken on greater importance in driving digitization, corporate resiliency, agility, and innovation.”

In honor of Data Privacy Day, check out some of Risk Management’s recent coverage of data privacy and data security:

CPRA and the Evolution of Data Compliance Risks

Also known as Proposition 24, the new California Privacy Rights Act (CPRA) aims to enhance consumer privacy protections by clarifying and building on the expectations and obligations of the California Consumer Privacy Act (CCPA).

Frameworks for Data Privacy Compliance

As new privacy regulations are introduced, organizations that conduct business and have employees in different states and countries are subject to an increasing number of privacy laws, making the task of maintaining compliance more complex. While these laws require organizations to administer reasonable security implementations, they do not outline what specific actions should be taken. Proven security frameworks like Center for Internet Security (CIS) Top 20, HITRUST CSF, and the National Institute of Standards and Technology (NIST) Framework can provide guidance.

Protecting Privacy by Minimizing Data

New obligations under data privacy regulation in the United States and Europe require organizations not only to rein in data collection practices, but also to reduce the data already held. Furthering this imperative, over-retention of records or other information can lead to increased fines in the case of a data breach. As a result, organizations are moving away from the practice of collecting all the data they can toward a model of “if you can’t protect it, don’t collect it.”

3 Tips for Protecting Remote Employees’ Data

As COVID-19 continues to force many employees to work from home, companies must take precautions to protect sensitive data from new cyberattack vulnerabilities. That means establishing organization-wide data-security policies that take remote workers into account and inform them of the risks and how to avoid them. These three tips can help keep your organization’s data safe during the work-from-home era.

What to Do After the EU-US Privacy Shield Ruling

It was previously thought that the EU-US Privacy Shield aligned with the EU’s General Data Protection Regulation (GDPR), but following the CJEU’s recent ruling, the Privacy Shield no longer provides a mechanism for legitimizing cross-border data flows to the United States. This has far-reaching consequences for all organizations that currently rely on it. In light of the new ruling, risk professionals must help their organizations to reevaluate data strategies and manage heightened regulatory risk going forward.

The Risks of School Surveillance Technology

Schools confront many challenges related to students’ safety, from illnesses, bullying and self-harm to mass shootings. To address these concerns, they are increasingly turning to a variety of technological options to track students and their activities. But while these tools may offer innovative ways to protect students, their inherent risks may outweigh the potential benefits. Tools like social media monitoring and facial recognition are creating new liabilities for schools.

2020 Cyberrisk Landscape

As regulations like CCPA and GDPR establish individuals’ rights to transparency and choice in the collection and use of their personal data, one can expect to see more people exercise these rights. In turn, businesses need to ensure they have formal and efficient processes in place to comply with such requests in the clear terms and prompt manner these regulations require, or risk fines and reputation fallout. These processes will also need to provide sufficient documentation to attest to compliance, so if businesses have not yet already, they should be building auditable and iterative procedures for “data revocation.”

Data Privacy Governance in the Age of GDPR

As personal information has become a monetizable asset, risk, compliance and data experts have increasingly been forced to address the regulatory and operational ramifications of the rapid, mass availability of personal customer and employee data circulated both inside and outside of organizations. With new data protection regulations, Canadian and U.S. companies must reassess how they process and safeguard personal information.

Key Features of India’s New Data Protection Law

Among the new data protection laws on the horizon is India’s Personal Data Protection Bill. While the legislation has not yet been approved and is likely to undergo changes before it is enacted, its fundamental structure and broad compliance obligations are expected to remain the same. Companies both inside and outside India should familiarize themselves with its requirements and begin preparing for how it will impact their data processing activities.

3 Tips for CCPA Enforcement During COVID-19

As we move into the second half of 2020 and the California Consumer Privacy Act (CCPA) is officially enforced, we are also in the midst of a global crisis that was not properly on the radar when the regulation was enacted in January. Organizations are now being tasked with CCPA compliance in an unexpected remote work environment, with more personal data available online than ever before. And some organizations have the added privacy challenge of contact tracing practices or applications being used internally to monitor employee health.

Even in the remote work environment, relevant companies must ensure that they are informing customers and staff about what data they are collecting, options for which personal details are being gathered, the right to say no and opt out of data collection, the right to request deletion of their information, and equal pricing despite their privacy selections.

Many businesses are still struggling to implement these guidelines and are attempting to avoid significant penalties, all while meeting uptime demands. Below are some tips from security and technology industry experts for the best ways to implement CCPA compliance:

Rely on Data Privacy Regulation Experts 

There is increasing uncertainty around many businesses’ futures, and therefore, it is critical to turn to data privacy regulation experts for advice, guidance and technological support. 

“With exponential amounts of enterprise data only increasing, ensuring data privacy involves layered, complex challenges for any business. From a cloud hosting perspective, meeting evolving compliance and privacy regulations, such as the CCPA law which is just beginning to be enforced, is one of those layers. One of the most important steps organizations can take to guarantee they are on the right path towards compliance is to rely on hosting providers that have teams experienced with privacy law regulations,” said Lex Boost, CEO of Leaseweb USA.  

While it may be tempting to rely on internal teams during the economic downturn, employee burnout in already resource-strapped IT and security teams could cost the companies more in talent loss and potential breaches/fines. Thus, companies should evaluate external providers.

Boost also said, “These providers can guide the process needed to guarantee data is managed within current and upcoming privacy regulations, allowing organizations to focus on maximizing data usage and the experience for their customers.”

Have the Right Cybersecurity Measures in Place 

Proper cybersecurity measures are often major components for achieving compliance with a variety of regulations, but especially the CCPA, which is focused on protecting sensitive data and users’ privacy rights. With major hacks making recent headlines at companies like Twitter, and ransomware attacks that threaten to exfiltrate and leak private data on the rise, companies should be on high alert.

“Nobody is safe from an attack leaking personal information, and it’s absolutely essential that correct cyber measures are in place to secure privileged accounts, in particular, as thoroughly as possible. With more information online and spread out than ever before, hackers not only have the ability to scam people, but also undoubtedly have access to private messages, security information, and other personal data,” said Torsten George, cybersecurity evangelist at Centrify.  

On top of increasing breach risks, many companies’ distributed workforces are making security preparedness even more complex. But there are solutions, according to George: “To protect organizations during this transitional remote working phase and the implementation of CCPA, it’s imperative to provide your IT administration teams, outsourced IT, and third-party vendors with secure, granular access to critical infrastructure resources regardless of location and without the hassles of a virtual private network (VPN). Privileged access management solutions can both maintain compliance and enable secure remote access to on-premises and cloud-based infrastructures, securing all administrative access with risk-aware, multi-factor authentication (MFA), and maintaining the level of compliance CCPA requires.”

Look Toward the Future 

The CCPA currently protects Californian’s privacy rights, but many legal and security experts think this could inspire a similar regulation at the federal level if it is successful.

“The CCPA is the first law of its kind in the United States, and it could set a precedent for other states. And because it applies to most companies who do business with individuals residing in California, the sweeping new law promises to have a major impact on the privacy landscape not only in California, but the entire country. The passage of a cohesive U.S. federal privacy law, one that will preempt state laws, is gaining momentum. It has strong bipartisan congressional support, and several large companies from a variety of industry sectors have come out in favor of it, some even releasing their own proposals. There are draft bills in circulation,” said Wendy Foote, senior contracts manager at WhiteHat Security.

Foote also advised, “With a new class of representatives sworn into Congress in 2019 and the CCPA effectively putting a deadline on the debate and officially being enforced in July, there may finally be a national resolution to the U.S. consumer data privacy problem. However, the likelihood of it passing in the very near future is slim. A single privacy framework must include flexibility and scalability to accommodate differences in size, complexity, and data needs of companies that will be subject to the law.”

It will take several months of negotiation for lawmakers to agree upon how the federal law would be implemented. While companies wait for the passage of a national privacy law and for it to take effect, they must continue to monitor developments in both state and federal privacy law and adapt as necessary.

Consumer privacy will continue to evolve, particularly in the time of COVID-19. Because of this, newer laws and regulations, like the European Union’s GDPR and the CCPA, must be flexible and evolve over time too.

Pregnancy-Tracking Apps Pose Challenges for Employees

As more companies embrace health-tracking apps to encourage healthier habits and drive down healthcare costs, some employees are becoming uncomfortable with the amount and types of data the apps are sharing with their employers, insurance companies and others.

This is especially true for apps that track fertility and pregnancy. As the Washington Post recently reported, these apps collect huge amounts of personal health information, and are not always transparent about who has access to it. The digital rights organization Electronic Frontier Foundation even published a paper in 2017 titled The Pregnancy Panopticon detailing the security and privacy issues with pregnancy-tracking apps. Employers can also pay extra for some pregnancy-tracking apps to provide them with employees’ health information directly, ostensibly to reduce health care spending and improve the company’s ability to plan for the future.

Given the documented workplace discrimination against women who are pregnant or planning to become pregnant, users may worry that the information they provide the apps could impact employment options or treatment by colleagues and managers. Pregnancy-tracking apps also collect infinitely more personal data than traditional health-tracking apps and devices like step-counters or heart rate monitors. This can include everything from what medications users are taking and when they are having sex or their periods, to the color of their cervical fluid and their doctors’ names and locations.

Citing discomfort with providing this level of information, the Washington Post reported some women have even taken steps to obscure their personal details when using the apps, for fear that their employers, insurance companies, health care providers or third parties may have access to their data and could use it against them in some way. They use fake names or fake email addresses and only give the apps select details or provide inaccurate information. Fearing the invasion of their newborn children’s privacy, some have even chosen not to report their children’s births on the apps, despite this impacting their ability to track their own health and that of their newborn on the app.

Like many other apps or online platforms, it may be difficult to parse out exactly what health-tracking apps are doing with users’ information and what you are agreeing to when you sign up. When employers get involved, these issues get even more difficult. By providing incentives—either in the form of tangible rewards like cash or gift cards, or intangible benefits such as looking like a team player—companies may actually discourage their employees from looking closely at the apps’ terms of use or other key details they need to fully inform the choice to participate or not.

While getting more information about employees’ health may offer ways to improve a workforce’s health and reduce treatment costs, companies encouraging their employees to use these apps are also opening themselves up to risks. As noted above, apps are not always transparent as to what information they are storing and how. Depending on the apps’ security practices, employees’ data may be susceptible to hacking or other misuse by third-party or malicious actors. For example, in January 2018, fitness-tracking app Strava released a map of users’ activity that inadvertently exposed sensitive information about military personnel’s locations, including in war zones. Given the kinds of personal details that some apps collect, health app data could also put users at risk of identity theft or other types of fraud.

Tracking, storing, and using workers’ personal health information also exposes employers and insurance companies to a number of risks and liabilities, including third-party data storage vulnerabilities and data breaches. This is especially important in places governed by stringent online data protection regulations like the European Union’s General Data Protection Regulation (GDPR). In addition to the risks of reputation damage, companies that are breached or otherwise expose employees’ personal information could face significant regulatory fines.

People using health-tracking apps, especially fertility-related apps, should weigh the costs and benefits of disclosing personal information against how apps and others are using this information. Companies who encourage their employees to use these apps and collect their personal health details should also be as transparent as possible about how they are using it, and implement measures to protect workers’ personal data to the fullest extent possible and ensure that managers are not using this data to discriminate against workers.