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New rules will protect consumers, harmonize regulation, and enshrine net neutrality. But a late amendment left the legislation in limbo The European Parliament has voted through a massive tranche of reforms for the European telecommunications sector, including a significant net-neutrality amendment. The 'Telecoms Package' of laws was voted into force on Wednesday with a large majority, and must now be ratified by the Council of Telecoms Ministers. The vote marks the first time that internet access has been recognised in European law as a fundamental right on a par with freedom of expression. The legislation also compels European telecoms and internet service providers (ISPs) to notify their customers of any personal data breaches, the first time they have been required to do so.

DURING the Parliament session on Monday, MP of Ang Mo Kio GRC Ms Lee Bee Wah, asked the Minister of Information, Communications and Arts, Dr Lee Boon Yang, whether a comprehensive privacy law will be introduced to protect the privacy of individuals and their personal data. She also queried about the existing laws which are in place to protect people from spam mails and unauthorised sale of personal information, as well as protecting people whose photographs are posted on blogs and other new media platforms. Dr Lee's reply was: "The Government recognises the importance of data protection and the need to protect personal data. At the same time, we also appreciate the impact of data protection on businesses and the general public. I had previously informed the House that an Inter-Ministry Committee is reviewing Singapore's data protection regime. This review is on-going. We are currently looking into developing a data protection model that can best address Singapore's privacy concerns, commercial requirements and national interest. As data protection is a complex issue with extensive impact on all stakeholders, this review will take some time." With regards to unauthorised Use of personal data, he replied: "While there is currently no generic data protection law, it does not mean that there is no protection of personal data. In fact we have in place strict provisions in sectoral laws, such as the Banking Act and codes for medical professionals to protect sensitive financial and health information. There are also other industry codes of practices against the unauthorised use of personal information. For example, in the telecommunications sector, under the Telecom Competition Code, IDA requires licensees to take reasonable measures to prevent the unauthorised use of End User Service Information. A telecom licensee would be in breach of the Code if it shares with third parties its customers' information that was obtained from the use of its service, without the cust

Federal regulators slapped hundreds of small telecommunications providers for not abiding by new rules designed to protect consumer phone records, proposing more than $13 million in total fines. The Federal Communications Commission proposed $20,000 fines on more than 650 small phone, pager and wireless providers Tuesday, accusing them of not filing paperwork that certifies they have put protections in place to protect customer phone data. "I have long stressed the importance of protecting the sensitive information that telecommunications carriers collect about their customers," said Michael Copps, the FCC's interim chairman, in a statement. "The broad nature of this enforcement action hopefully will ensure substantial compliance with our [privacy] rules going forward as the Commission continues to make consumer privacy protection a top priority." In April 2007, the FCC tightened privacy requirements on phone companies in response to consumer complaints about data brokers selling phone records they had obtained illegally through "pretexting," or getting information under false circumstances. The agency required telecom companies to increase security of phone records, requiring customers to provide a password before receiving account information over the phone or online. Phone companies are required to notify customers when changes are made to their accounts or if their information has been improperly accessed. Companies are required to file annual certifications that they have complied with those requirements. The FCC said hundreds of small companies didn't provide the information in 2008, although it noted it was the first year the agency had required the paperwork. The agency warned that future noncompliance could face "more severe penalties."

A leading technology advisor to President Obama said in a research note for his investment firm today that privacy and net neutrality will be among the biggest telecommunications issues facing the Federal Communications Commission and the administration going forward. Analyst Blair Levin, who was the co-lead of Obama's technology and innovation team along with nominated FCC Chair Julius Genachowski, wrote in a Stifel Nicolaus research note that the economic crisis and change of administration will shift the focus of telecom policy away from traditional phone companies to "Internet/edge" players. Indeed, Google and other Web video and voice companies like Skype have been increasingly active in recent years at the FCC, pushing particularly for net neutrality rules that would prevent carriers from blocking or charging more for certain content that travels over the Web. Levin said in a note that net neutrality will emerge again as an issue in the new administration for wireless networks. On the other hand, there won't likely be a push for new net neutrality rules for cable, DSL, and fiber network carriers at the FCC. "(There is a) consensus emerging that disputes about whether a wireline network management tool is 'reasonable' (or is actually blocking or degrading traffic) to be resolved on a case-by-case basis," Levin wrote in the note with analysts Rebecca Arbogast and David Kaut. It would be a tough climb to impose rules that force wireless carriers to open their networks. Apple and AT&T successfully argued to lawmakers and regulators to keep their exclusive iPhone contract. Skype's petition to the FCC to force carriers to allow any handset or software to operate on any network was shot down by former FCC Chairman Kevin Martin. He said the biggest "sleeper" issue will be privacy. With a major overhaul of healthcare records to the Web, the rise in behavioral advertising and cloud computing, where information is stored in computers strung across many geographies

The European Commission started legal action against Britain on Tuesday for what the EU executive called a failure to keep people's online details confidential. EU Telecoms Commissioner Viviane Reding said the action related to how Internet service providers used Phorm (PHOR.L) technology to send subscribers tailor-made advertisements based on websites visited. Reding said Internet users in Britain had complained about the way the UK applied EU rules on privacy and electronic communications that were meant to prohibit interception and surveillance without the user's consent. "Technologies like Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Reding said in a statement. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications," Reding said. She called on Britain to change its national laws to ensure there were proper sanctions to enforce EU confidentiality rules. Unless Britain complies, Reding has the power to issue a final warning before taking the country to the 27-nation EU's top court, the European Court of Justice. If it rules in favour of the European Commission, the court can force Britain to change its laws. (Reporting by Huw Jones, editing by Dale Hudson)

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Wikipedia told the controversial U.K. advertising firm Phorm on Thursday not to spy on Wikipedia's users, saying the company's plan to monitor what sites people visit on the net invaded people's privacy. Wikipedia now joins Amazon.co.uk in opting out of the Big-Brother-esque marketing scheme and creating the possibility of a mass opt-out by the net's largest websites. Phorm wants to pay ISPs -- such as British Telecom -- to let it build marketing profiles of its subscribers by installing boxes inside the ISP that monitor every url users visit and every search they run. Using those profiles, Phorm can charge advertisers high rates to serve targeted ads. But in an email sent Thursday, Wikimedia.org told Phorm not to record anything about urls from domains it controls, ranging from Wikiquotes to Wikipedia -- one of the most popular sites on the net. Phorm operates an opt-out system for sites and ISP customers, but it would be virtually impossible to verify if the company actually complied with such requests. "The Wikimedia Foundation requests that our web sites including Wikipedia.org and all related domains be excluded from scanning by the Phorm / BT Webwise system, as we consider the scanning and profiling of our visitors' behavior by a third party to be an infringement on their privacy," the email read, according to a Wikimedia blog post.

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A U.S. appeals court on Friday denied a bid by the cable industry to overrule privacy rules that make it more difficult for them to share subscribers' personal information with other parties. The U.S. Court of Appeals for the District of Columbia Circuit denied a petition by the National Cable and Telecommunications Association, which argued that federal rules on telecom carriers' use of customer data violated free speech rights under the U.S. Constitution, federal law or both. At issue are rules set by the U.S. Federal Communications Commission that mandate telecommunications carriers must get an "opt-in" before disclosing customers' information to a carrier's joint venture business partner or an independent contractor.

THE Government is looking to develop a way to protect individuals' personal data that can 'best address' three issues. These are privacy concerns, commercial requirements and national interest. An inter-ministry committee is already reviewing the issue, said Minister for Information, Communications and the Arts Lee Boon Yang. 'As data protection is a complex issue, with extensive impact on all stakeholders, this review will take some time,' he said. He said this in a written reply to a question posed by Ms Lee Bee Wah of Ang Mo Kio GRC in Parliament on Monday. She had asked if his ministry will consider a comprehensive privacy law, and wanted to know what laws there are to protect people from spam mail and the unauthorised sale of personal information. Also, what about those whose photographs have been posted on blogs and other new media platforms without their authorisation, she had asked. This would be considered a 'civil matter', said Dr Lee. 'The aggrieved persons could first ask the site's webmaster to remove the pictures,' he said. 'As with matters relating to online libel and personal defamation, they could also seek professional legal advice to determine the most appropriate legal recourse.' As for the protection of personal data, the minister said that although no generic data protection law exists, such data is still protected. He listed the various measures that are already in place. For instance, there are 'strict provisions' in sectoral laws such as the Banking Act, and codes for medical professionals to protect sensitive financial and health information, he said. There are also other industry codes of practices against the unauthorised use of personal information, he added. For example. the Telecom Competition Code requires licensees to take 'reasonable measures' to prevent the unauthorised use of consumers' information. In addition, there is a voluntary privacy code, which has been adopted by many companies in the private sector, said Dr

On Monday, U.K.-based digital rights organization Open Rights Group submitted an open letter to major online media players, urging them to prevent ISP-level behavioral targeting firm Phorm from tracking user interactions on their Web sites. The letter, sent to Google, AOL, Microsoft, Facebook, Yahoo, Amazon and Ebay, said, "[ORG] believes that it is clearly in your company's interest, it is in the interests of all of your customers, and it will serve to protect your brand's reputation, if you insist that the Phorm/Webwise system does not process any data that passes to or from your website." "We have received the letter and are giving it careful consideration from privacy and business perspectives," a spokesperson for AOL and its social network Bebo told ClickZ News. Similarly, in reference to the ORG correspondence, a Google spokesperson told ClickZ, "We've received the ORG's letter, but we're still considering the points they raised, so we don't have a response to make at this time." According to information published on the British Telecom Web site (one of Phorm's ISP-partners,) site owners can specifically request that their properties are not "scanned" by Phorm's technology, by contacting the firm directly. Phorm announced deals with three major U.K. ISPs over a year ago, but its technology is still yet to be fully deployed. BT has, however, carried out live trials of the platform with some of its customers. Phorm's CEO, Kent Ertugrul, claims that BT will implement his company's technology by the end of the year, but BT itself remains less committed to that timeline. Both AOL and Google have vested interests in the behavioral targeting space, although not in the controversial area of deep packet inspection (DPI), in which Phorm's technology lies. AOL-owned Tacoda targets ads based on users' activity across a range of partner sites, but does not directly intercept ISP-data. Google also announced this month that it will begin testing similar behavioral targe

Those who are superstitious may believe that bad things happen on Friday the 13th, but we will leave it to each individual and entity to formulate conclusions regarding the Health Information Technology for Economic and Clinical Health Act (the HITECH Act), which Congress passed late on Friday, February 13, 2009, and President Obama officially signed into effect on February 17, 2009. The HITECH Act addresses various aspects relating to the use of health information technology (H.I.T.), including providing for federal funding by way of grants and incentive payments in order to promote H.I.T. implementation. This Alert focuses, however, on Subtitle D of the HITECH Act, which includes important, new and far-reaching provisions concerning the privacy and security of health information that will materially and directly affect more entities, businesses and individuals in more diverse ways than ever before. These changes are further elaborated upon below, but this Alert can only highlight certain prominent issues under the HITECH Act and is by no means a comprehensive review of this lengthy and complex Act. For questions and additional guidance on the HITECH Act, contact your Fox Rothschild attorney or the authors of this Alert. New Privacy and Security Requirements * Security Breach Notification Requirements: Security breach notification requirements under the HITECH Act go into effect 30 days after the date that interim final regulations are promulgated, which will be no later than 180 days after the date of enactment of the HITECH Act (August 16, 2009). Covered entities, business associates and vendors who handle personal health records are required to abide by breach notification requirements. Violations of this requirement by vendors would be treated as an unfair and deceptive act or practice in violation of the Federal Trade Commission Act. If a breach affects more than 500 individuals of a particular state, notice also must be provided to prominent media outl