Data processing agreements are a standard part of business arrangements involving personal data due to the European Union’s General Data Protection Regulation as well as the ever-expanding number of U.S. consumer privacy statutes.

Amendments have recently been proposed to two of the three statutes to be enacted under Canada’s Bill C-27: The Digital Charter Implementation Act. The statutes that may be amended are the Consumer Privacy Protection Act and the Artificial Intelligence and Data Act. The proposed amendments would beef up the protections in both statutes.

The Federal Trade Commission has approved an amendment to the Safeguards Rule under the Gramm-Leach-Bliley Act that creates a new data privacy regulatory reporting requirement for non-banking financial entities. Covered entities must notify the FTC within 30 days of discovery of a “notification event” that involves the unauthorized acquisition of unencrypted customer information of 500 or more consumers. The new rule, announced on October 27, takes effect 180 days after publication in the Federal Register, meaning approximately May 2024.

Last week, we discussed action taken by three states, Texas, California, and Ohio, to enhance protection of children’s data online. In this second installment, we shift our attention to address the 2023 legislative efforts of three additional states: Utah, Arkansas, and Connecticut.

On Monday, President Biden signed an Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. This Executive Order follows several other AI-related government initiatives, including the Blueprint for an AI Bill of Rights, the National Institute of Standards and Technology AI Risk Management Framework, the National AI R&D Strategic Plan, and the National AI Research Resource Roadmap.