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New Federal Laws Restricting Data Transfers to Foreign Adversaries: Scope, Enforcement, Penalties, Implications

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, August 7, 2024

Recorded event now available

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This CLE webinar will provide an overview of recent legislation and an Executive Order (EO) restricting the sale or release of sensitive data to foreign adversaries. The panelist will discuss the scope, applicability, and practical implications of these new laws and will provide guidance on actions companies need to take now to ensure compliance.

Description

The federal government has made significant strides in its effort to protect Americans' sensitive data from foreign adversaries. In late February, President Biden issued an EO directing federal agencies to deploy regulations governing bulk sensitive data transfers to certain countries. The EO was followed by an Advanced Notice of Proposed Rulemaking by the Department of Justice detailing proposed regulations that either prohibit or restrict certain bulk sensitive data transfers to countries of concern because such transfers pose a risk to national security.

On Apr. 24, 2024, President Biden signed into law two pieces of legislation that also target data use practices with important implications for a large number of industries.

The Protecting Americans' Data From Foreign Adversaries Act of 2024 (PADFA) generally prohibits "data brokers" from selling, licensing, renting, trading, transferring, releasing, disclosing, providing access to, or otherwise making available personally identifiable "sensitive data" of U.S. residents to a foreign adversary country or an entity controlled by them. PAFDA is effective June 23, 2024, and includes steep civil penalties for violations.

The Protecting Americans From Foreign Adversary Controlled Applications Act (PAFACA), which originally targeted TikTok, makes it unlawful for an entity to distribute, maintain, or update (or enable the distribution, maintenance, or updating of) a website, desktop application, mobile application, or augmented or immersive technology application that is operated, directly or indirectly (including through a parent company, subsidiary, or affiliate), by a foreign adversary. PAFACA also imposes significant civil penalties for violations based on the number of users within the U.S.

Listen as David Peloquin. Partner at Ropes & Gray, reviews these changes in the federal government's approach to privacy and data security. The panel will also provide guidance for assessing the applicability of these new rules to a client's business and how to navigate compliance under this new data transfer framework.

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Outline

  1. Overview: current federal landscape regarding data use practices
  2. EO on Preventing Access To Americans' Bulk Sensitive Personal Data and U.S. Government-Related Data by Countries of Concern
  3. Protecting Americans' Data From Foreign Adversaries Act of 2024
  4. Protecting Americans From Foreign Adversary Controlled Applications Act
  5. Key definitions and provisions of new laws
  6. Scope and applicability
  7. Penalties for violations
  8. Implementation of new laws
  9. Harmonizing the new laws with current state laws regulating data brokers
  10. Implications for businesses
  11. Actions businesses need to take now to ensure compliance

Benefits

The panelist will discuss these and other key issues:

  • What are the key definitions and provisions of the new legislation and EO prohibiting certain data transfers to foreign adversaries?
  • What are the practical implications of these new laws for businesses?
  • How will these new laws be enforced and what are the penalties for violations?
  • When do these new laws become effective and what actions do businesses need to take now to ensure compliance?

Faculty

Peloquin, David
David Peloquin
Partner
Ropes & Gray

Mr. Peloquin advises clients on a wide range of legal and regulatory issues in the area of clinical research and...  |  Read More

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