TikTok Aims to Resist Divestment, Remain Operational in U.S.

Last week, a federal appeals court upheld a law that would force the sale of popular social platform TikTok in order for it to remain operational in the United States. Beijing-based parent company ByteDance is vowing to fight on with a petition for a hearing by the U.S. Supreme Court. The law, passed in April, invokes existing federal code that prohibits access to sensitive material by adversarial foreign nations of which China (along with Russia, Iran and North Korea) is one. Barring further court action, ByteDance will have to sell TikTok by January 19 or face bans at app stores. Continue reading TikTok Aims to Resist Divestment, Remain Operational in U.S.

FTC Adds Click-to-Cancel Provision to Negative Option Rule

The Federal Trade Commission has implemented a consumer “click-to-cancel” rule that requires sellers to make it as simple to cancel subscriptions or memberships as it was to sign up. The FTC vote was 3 to 2, along party lines, in favor of implementing the rule, which makes it easier to divest of unwanted, recurring bills. “Too often, businesses make people jump through endless hoops just to cancel a subscription,” said FTC Chair Lina Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.” Continue reading FTC Adds Click-to-Cancel Provision to Negative Option Rule

Steam Preemptively Adds License-Only Terms to Online Store

Acting in advance of a California law that goes into effect on January 1, cloud gaming platform Steam has begun posting a notice that its customers are purchasing a license, not a product. The language that appears in the Steam shopping cart now includes the advisory that “purchase of a digital product grants a license for the product on Steam.” Signed into law last month, California’s AB 2426 is categorized a consumer protection law against false advertising for digital goods. Specifically, it requires online sellers provide a “conspicuous” advisory that licenses are limited in duration and can be revoked. Continue reading Steam Preemptively Adds License-Only Terms to Online Store

California Enacts Laws for Sub Canceling, Digital Downloads

California’s “click to cancel” bill has become law, making it easier for consumers to cancel subscriptions. Companies that offer online or in-app sign-ups will now have to make canceling or unsubscribing available online or in-app as well. Assembly Bill 2863 was signed into law this week by Governor Gavin Newsom, though companies have until the middle of next year to comply. Consumers have long complained about companies making it easy to sign up but difficult to cancel services. This law ensures consumers can easily exit from services “without being trapped by confusing processes or hidden fees.” Continue reading California Enacts Laws for Sub Canceling, Digital Downloads

U.S. Raises Stakes in TikTok Legal Battle, Suing Under COPPA

The U.S. Department of Justice has filed suit against TikTok and its parent company, ByteDance, charging they’ve violated the Children’s Online Privacy Protection Act (COPPA) by allowing children to create TikTok accounts without parental consent, and collecting their data. The suit also alleges TikTok retained the personal data of minors who joined prior to COPPA going into effect in 2000, even after parents demanded it be deleted, a right under COPPA. This latest move in the ongoing legal battle with ByteDance follows the Chinese company’s own lawsuit against the U.S. government. Continue reading U.S. Raises Stakes in TikTok Legal Battle, Suing Under COPPA

Congress Moves Bicameral Data Privacy Bill to Protect Public

The Senate and House Commerce Committee chairs have jointly released a bipartisan bill that seeks to protect the personal online data of U.S. citizens. The American Privacy Rights Act aims to set “clear, national data privacy rights and protections for Americans” and establishes a way individuals can sue entities that violate its provisions. The proposed law represents a years-long effort by Congress to establish data privacy regulations. If it passes, it will preempt the various data privacy laws enacted by states including California, Colorado, Connecticut and Tennessee. Continue reading Congress Moves Bicameral Data Privacy Bill to Protect Public

Oregon’s Right to Repair Law Is the First to Ban Parts Pairing

Oregon has signed into law one of the strongest right to repair bills in the United States. With the new law, it will become the first state to ban “parts pairing,” which is when replacement parts are prevented from working unless the manufacturer’s software approves them. The pairing protections also forbid companies from limiting functionality for off-brand parts. Apple — which endorsed California’s right to repair law, passed in October — pushed back against the pairing provision. Only devices made after January 1, 2025, when the Oregon law goes into effect, are prevented from parts pairing. Continue reading Oregon’s Right to Repair Law Is the First to Ban Parts Pairing

EU’s Digital Markets Act Investigation Targets Big Tech Firms

The European Commission has opened five investigations targeting Apple, Google, Meta and Amazon with regard to its new Digital Markets Act (DMA) antitrust rules. Under examination are steering practices with regard to Google and Apple and their app stores, potential “self-preferencing” tactics by Google and Amazon, Meta’s “pay or consent” policy for ad targeting, Apple’s compliance with “user choice” obligations, and also its recent App Store price adjustments for third parties. The vetting is expected to last for 12 months. The DMA was adopted in 2022 and goes into force this May. Continue reading EU’s Digital Markets Act Investigation Targets Big Tech Firms

FCC Votes to End Cable and Satellite Early Termination Fees

The Federal Communications Commission is proposing to eliminate penalties for early termination and other so-called junk fees from cable and direct broadcast satellite television providers. The agency will also be studying the impact of such practices on consumers, which it believes may be subject to undue hardship when penalized for things like moving, unexpected financial hardship or poor service. During its December Open Meeting last week, the FCC voted to adopt a Notice of Proposed Rulemaking (NPR) to end what it appears to feel are unjustified fees that also potentially harm competition by adding costs to switching services. Continue reading FCC Votes to End Cable and Satellite Early Termination Fees

FCC Teams with States to Monitor ISPs on Consumer Privacy

The Federal Communications Commission has set its sights on Internet service providers, formalizing an understanding with state attorneys general to protect consumer data and police privacy abuses. Initially, the memoranda of understanding (MOU) with the FCC’s Privacy and Data Protection Task Force includes the attorneys general of Connecticut, Illinois, New York and Pennsylvania, but could expand. As per the MOU, the entities will “share close and common legal interests in working cooperatively to investigate and, where appropriate, prosecute or otherwise take enforcement action” in relation to privacy, data protection and cybersecurity issues. Continue reading FCC Teams with States to Monitor ISPs on Consumer Privacy

California Privacy Protection Agency Issues Draft Rules for AI

The California Privacy Protection Agency (CPPA) is preparing new regulations to protect consumers from how businesses may potentially use AI. The state regulator, whose rulings have an outsized influence on Big Tech given the many large firms that are headquartered there, has issued draft rules for how consumer data can be used in what it is calling “automated decisionmaking technology,” or ADMT. The proposed regulations give consumers the right to opt out of ADMT and entitles the public to on-demand information as how AI is interacting with their data and how businesses plan to use it. Continue reading California Privacy Protection Agency Issues Draft Rules for AI

Google Seeks Out Scammers Using Bard to Spread Malware

Google has filed suit in federal district court in California to stop alleged fraudsters from leveraging public interest in artificial intelligence generally and Bard in particular to spread malware. The perpetrators, who are believed to be based in Vietnam, are said to be using Facebook to promote an “unpublished” version of Bard that when downloaded installs password-stealing malware into the host system. The suit claims the scammers are using Google’s trademark-protected intellectual property — including its name and that of Bard, its brand look and colors, and photographs of CEO Sundar Pichai to promote an illegal scheme. Continue reading Google Seeks Out Scammers Using Bard to Spread Malware

Newsom Makes California ‘Delete Act’ Data Protections Law

Governor Gavin Newsom signed SB 362, also known as the Delete Act, into law on Tuesday, giving California consumers the ability to demand all data brokers delete their personal information with a single request. The Delete Act expands privacy controls for state residents, giving the California Privacy Protection Agency more power to regulate data brokers, who will face strict penalties for failing to comply. The new law, authored by state Senator Josh Becker, makes California the first U.S. state to create a convenient deletion mechanism for consumers who don’t want their personal information held or sold by data brokers. Continue reading Newsom Makes California ‘Delete Act’ Data Protections Law

California Plans to Protect Consumer Privacy with Delete Act

California lawmakers have put data brokers on notice. A bill known as the Delete Act would allow consumers to require all such information peddlers to delete their personal information with a single request. The bill defines “data brokers” as any number of businesses that collect and sell people’s personal information, including residential address, marital status and purchases. Both houses last week passed the proposed legislation — Senate Bill 362 — and it now heads to Governor Newsom’s desk. If he signs it, the new law will go into effect in January 2026. Continue reading California Plans to Protect Consumer Privacy with Delete Act

FTC Investigates OpenAI Over Data Policies, Misinformation

The Federal Trade Commission has opened a civil investigation into OpenAI to determine the extent to which its data policies are harmful to consumers as well as the potentially deleterious effects of misinformation spread through “hallucinations” by its ChatGPT chatbot. The FTC sent OpenAI dozens of questions last week in a 20-page letter instructing the company to contact FTC counsel “as soon as possible to schedule a telephonic meeting within 14 days.” The questions deal with everything from how the company trains its models to the handling of personal data. Continue reading FTC Investigates OpenAI Over Data Policies, Misinformation