• The Department of Commerce Internet Policy Task Force unveiled last week a report titled “Commercial Data Privacy and Innovation in the Internet Economy: A Dynamic Policy Framework.” The report explores ways to enhance consumer privacy while still enabling online innovation. It recommends the development of “Fair Information Privacy Principles,” the creation of a privacy office within the agency, and consideration of a national data security breach notification law. The report also seeks comment on a number of additional issues, including whether a proposed “privacy bill of rights” should be implemented through legislation and how privacy principles should be enforced. Potential enforcement measures include more detailed rules and oversight by the FTC and a private right of action for consumers. A federal data breach notification law, which would be enforced by state authorities and the FTC, could set national standards and preempt "inconsistent" state laws, the report says. In addition, the report also calls for greater international cooperation on privacy. It notes that the EU and several countries around the world have adopted omnibus privacy laws. The full report is available here.
  • The California Department of Public Health (CDPH) announced last week that a magnetic tape containing the sensitive medical information of as many as 2,550 residents and employees in 600 California skilled nursing facilities has gone missing in the US Mail. The tape reportedly contains e-mail addresses, investigative reports, background information on healthcare workers, names of health care facility residents, medical diagnoses, and the social security numbers of CDPH employees and residents dating from 2003. A CDPH spokesperson acknowledged that “this is definitely the largest breach of confidential and private information we’ve had at the Department of Public Health.” The incident arose from a violation of protocol that requires the state to use a private courier instead of the US Postal Service for the delivery of sensitive material. When a CDPH office in West Covina, near Los Angeles, sent the tape via the US Postal Service to the Sacramento central office for backup, the Sacramento office received the mailed envelope “which was reported to be unsealed and empty,” the state said.