U.S. companies using AI models developed by companies based in the People’s Republic of China, including DeepSeek, Moonshot AI or MiniMax, should be aware of potential congressional scrutiny in this Congress and the next. Two House committees are conducting a
Password Protected
Data Privacy & Security News and Trends
Password Protected, published by McGuireWoods LLP, focuses on legal issues related to data privacy, cybersecurity, and technology law. The blog covers regulatory developments such as SEC enforcement actions, state cybersecurity regulations like those from NYDFS, and privacy laws including California's CCPA and CIPA. It addresses risk management practices for third-party vendors, compliance challenges, and the impact of emerging technologies like AI on privacy and security frameworks. The blog also discusses litigation trends, enforcement guidance, and legislative proposals affecting corporate cybersecurity and data protection obligations.
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California’s SB 690: Legislative Relief on the Horizon for Website Privacy Claims
California Senate Bill 690 (“SB 690”) continues to advance in the California state legislature. SB 690 seeks to limit litigation brought pursuant to the California Invasion of Privacy Act (“CIPA”) given the avalanche of website technology litigation, which continues unabashedly.…
New Frontiers in Spoliation: Preserving AI Records in Litigation
The explosion of generative AI in the workplace has created a new and largely unaddressed category of litigation risk. In May 2025, a federal court in the Southern District of New York ordered OpenAI to preserve and segregate all ChatGPT…
California Court Rules Automated License Plate Recognition Law Requires Actual Harm
On July 20, 2026, the California Court of Appeal (Fourth Appellate District, Division One) issued its decision in Mata v. Digital Recognition Network, Inc., No. D084781, holding that standing to sue under California’s Automated License Plate Recognition (ALPR) statute…
California’s Automated License Plate Recognition Law Draws Increased Litigation Exposure
In February 2026, the California First District Court of Appeal held that, at the pleading stage, the plaintiff had sufficiently pled that a parking garage’s failure to publicly display an automated license plate recognition (“ALPR”) usage and privacy policy violated…
DoW Suspends CMMC Phase II Requirements – Launches 60-Day Review
On July 13, 2026, the Department of War (DoW) announced the immediate suspension of all Cybersecurity Maturity Model Certification (CMMC) Phase II requirements, which had originally been scheduled to take effect Nov. 10, 2026, including the transition to mandatory third-party…
AI-Assisted Billing Could Create FCA Pitfalls: How Healthcare Companies Can Get Ahead of Risk
Across the healthcare industry, providers are increasingly relying on AI-assisted billing tools to automate medical coding, prior authorization workflows, and the submission of claims to Medicare, Medicaid and other federal payors. The efficiency gains can be substantial, as can the…
The Great American AI Act: What It Means — and Doesn’t Mean — for Companies Using AI
On June 4, 2026, Reps. Jay Obernolte and Lori Trahan released a discussion draft of the Great American Artificial Intelligence Act. The proposal has generated significant attention, but many organizations may be overestimating its practical significance for day-to-day operations. The…
GSA AI Procurement Rules Would Introduce New Disclosure and Use-Rights Requirements for Federal Contractors
The General Services Administration Federal Acquisition Service has released draft contract terms and conditions related to AI-related procurements through a new proposed GSAR clause 552.239-7001, “Basic Safeguarding of Artificial Intelligence Systems” (February 2026), that would impose material new requirements on…
Seventh Circuit Delivers Major Win for Businesses By Holding BIPA Damages Amendment Applies Retroactively
On April 1, 2026, the U.S. Court of Appeals for the Seventh Circuit, which consolidated three interlocutory appeals, issued a significant ruling in Clay v. Union Pacific Railroad Co., that resolves the question of whether Illinois’s 2024 amendment to the…