Posts Tagged ‘privacy’

Buy our protective services, or we’ll rat you out to the feds

I’ve got a new post at Cato summarizing dramatic new testimony in the case (briefly noted here last year) of a laboratory company that got reported to the Federal Trade Commission for data breach — and drawn into a crushingly expensive legal battle — after it declined to buy data security services offered by a company with Homeland Security contracts. The battle has been raging for a while, with the nonprofit Washington, D.C. group Cause of Action representing LabMD and outlets like Mother Jones running coverage unsympathetic to its case.

Labor and employment roundup

  • Mach Mining v. EEOC: unanimous SCOTUS, Kagan writing, agrees courts can hold EEOC to legal duty of pretrial conciliation, but prescribes narrower review than employer asked, with no commission duty of good-faith negotiation [Maatman et al; earlier on case here, here, and here; earlier from me on EEOC record of frequent losses in court]
  • New “ambush election” rules: “Your Privacy Has Just Been Compromised, Thanks To Obama’s NLRB” [Labor Union Report]
  • U.K. controversy parallels ours: “Banning unpaid internships will harm, not help, the disadvantaged” [Andrew Lilico, IEA]
  • “U.S. signed agreement with Mexico to teach immigrants to unionize” [Sean Higgins, Washington Examiner]
  • Another view on bias-law “Utah compromise” [Dana Beyer, Huffington Post; my critical view]
  • Advice to employers: “OSHA is not your friend. It is not there to give you an atta-boy on workplace safety. It is there to find violations and levy fines to make money for OSHA.” [Jon Hyman]
  • “CA: Failing to Pay Prevailing Wages May Be Intentional Interference with Prospective Economic Advantage” affording competitors a cause of action [Garret Murai via TortsProf]

Target data breach class settlement

The Target Corporation’s settlement of class action litigation over a major consumer data security breach is not as groundbreaking as all that, and in particular falls far short of the enormous liability payouts that were being talked of for a while [Paul Karlsgodt; Minnesota Public Radio] It does however feature attorney’s fee payouts “not to exceed $6.75 million, which is on the high end of the historical range” [Paul Bond, Lisa Kim, and Christine Czuprynski, Reed Smith] Earlier here. More: Randy Maniloff, Minneapolis Star-Tribune.

Music criticism, down the EU memory hole

The EU’s newly minted “right to be forgotten” may generate an Orwellian memory hole into which can be thrown the inconvenient past. “The [Washington] Post received a letter from Mr. Lazi? in September requesting that [classical music critic Anne] Midgette’s review be scrubbed from the Web. When she failed to reply, he upped the ante by claiming that it was ‘defamatory, offensive and mean-spirited’ and thus violates his legal right to be forgotten.” [Terry Teachout, WSJ via Arts Journal]

Feds to put monitors inside two banks

Via Politico, a WSJ news item from last month that should not pass unremarked:

New York’s banking regulator is pushing to install government monitors inside the U.S. offices of Deutsche Bank and Barclays … as part of an intensifying investigation into possible manipulation in the foreign-exchange market … The state’s Department of Financial Services notified lawyers for the two European banks earlier this month that it wanted to install a monitor inside each firm, based on preliminary findings in the agency’s six-month currencies-market probe … Negotiations are continuing over the details of the monitors’ appointments, but New York investigators expect to reach an agreement soon.

The regulatory agency has selected Deutsche Bank and Barclays for extra scrutiny partly because the records it has collected so far from more than a dozen banks under its supervision point to the greatest potential problems at those two banks, the people said. Plus, Deutsche Bank and Barclays are among the dominant players in the vast foreign-exchange market, so investigators hope a close-up view into their businesses will help them observe other players and trading patterns [emphasis added — W.O.].

We’ve covered the expanding role of settlement and litigation monitors in past posts, and noted the seemingly arbitrary and unaccountable powers these monitors may exercise during their stay within the enterprises to which they are embedded. But there’s something novel (isn’t there?) about the installation of monitors loyal to state overseers whose mission includes watching other firms and market players besides the one that has admitted misbehavior (or has been found by a court to have misbehaved). When you have dealings with a company, and perhaps decide to entrust your sensitive personal or business data to it, should you be worried that it wind up crossing the screen or desk of a quietly emplaced monitor reporting back to Albany, or perhaps Washington?

If you want to understand the logic of an inquisition…

…study this comment on our thread about activists’ FOIA-ing of University of Virginia professor Douglas Laycock:

Scott Rose 05.30.14 at 9:40 am

That Laycock and/or the university would refuse to show the requestors the material they are requesting suggests that Laycock has something to hide, and that what he is hiding shows that he has been behaving unethically.

The story has broken out into widespread discussion this week; check out contributions by Will Creeley at FIRE, Dahlia Lithwick at Slate, and Megan McArdle at Bloomberg View.