The European Court of Justice (ECJ) has struck down the 15-year-old “Safe Harbor” agreement that permitted companies operating in Europe to transmit personal user data to the United States, as long as the U.S. ensures an adequate level of data protection at the company and certifies that it will abide by seven EU data privacy principles regarding notice, choice, onward transfer, security, data integrity, access, and enforcement. The case, entitled Maximillian Schrems v. Data Protection Commissioner, was decided on October 6, 2015 and has an immediate effect on European courts. See here.
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Miscellaneous
FTC v. Wyndham: The Third Circuit Recognizes FTC Authority to Regulate Commercial Cyber Security Practices
In 2014, the United States Court of Appeals for the Third Circuit ruling in FTC v. Wyndham Worldwide Corporation agreed to hear an immediate appeal on two issues: “whether the FTC has authority to regulate cybersecurity under the unfairness prong of § 45(a); and, if so, whether Wyndham had fair notice its specific cybersecurity practices could fall short of that provision.” On August 24, 2015 the Third Circuit affirmed the decision of the District Court and denied Wyndham’s motion to dismiss the complaint.
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Second Circuit Court of Appeals Adopts “Primary Beneficiary Test” and Provides Guidance on the Unpaid Intern Question
On July 2, 2015, the Second Circuit Court of Appeals issued significant pro-employer decisions in Glatt v. Fox Searchlight Pictures (Nos. 13-4478-cv, 13-4481-cv) (“Fox”) and Wang v. Hearst Corp. (No. 13-4480-cv) (“Hearst”) that served as a setback for the plaintiffs in both cases. In both cases, the plaintiffs – unpaid interns who had spent time at Fox Searchlight and Hearst magazines, respectively – alleged that they should have been classified as employees and paid for their time. As a result, they brought claims for, among other things, unpaid wages on a class-wide basis. The district court decisions were split. In Fox, the judge granted summary judgment on the issue that interns were employees and permitted the plaintiffs to proceed on a class and collective basis. To the contrary, in Hearst, the judge denied summary judgment on the same issue and denied the plaintiffs’ motion to proceed as a class. On appeal in both cases, the Second Circuit adopted a balancing standard called the “primary beneficiary test” and held that district courts should use this test when analyzing whether an individual should have been classified as an intern or an employee. The Second Circuit also held that the proposed classes of interns in both cases failed to satisfy the requisite standards in order to proceed on a class-wide basis.
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Will The FTC Issue Native Advertising Guidelines in 2015?
As we previously reported last year, native advertisements represent an increasingly popular and effective means of promotion for marketers that also presents a major challenge for the Federal Trade Commission (“FTC”), an organization whose primary duty is to protect consumers from false and misleading advertising. Native advertising, also known as corporate content or branded journalism, features marketing material that is designed to mimic the look and feel of the host website. While the look of native advertisements differs depending on the host website, the underlying goal for marketers is the same — to make the advertisement look and feel like editorial content.
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There’s No Such Thing As a Free Sample
Social media allows users to effortlessly communicate globally with nothing more than a few keystrokes. Advertisers have harnessed the power of social media bloggers and incorporated it as a key component of their advertising campaigns. This practice is known as “consumer-to-consumer” marketing or “consumer-generated media” marketing. While consumer-to-consumer marketing is a prevalent practice, especially in the fashion industry, the use of bloggers to promote fashion products to consumers necessitates compliance issues under the Federal Trade Commission Act.
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Out of Africa: Business Summit Focuses On Renewal of AGOA
The United States government in conjunction with the Bloomberg Philanthropies held the first ever US-Africa Business Summit on August 4–6, 2014 to discuss trade opportunities in Africa. A primary focus of discussion at the summit was the Africa Growth and Opportunity Act (AGOA), a regulation passed in 2000 to implement trade benefit provisions for sub-Saharan Africa. A major benefit of AGOA is allowing duty-free import of textile and apparel materials from beneficiary countries in Africa to the United States. This provision is currently set to expire on September 30, 2015 however, stakeholders in the textile and apparel industry, both in the US and Africa, are now advocating for its extension.
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“Going Native”
Native advertisements represent not only an increasingly popular and effective means of promotion for marketers, it also represents a massive headache for the Federal Trade Commission (“FTC”). Native advertising, also known as corporate content or branded journalism, is marketing material that is designed to mimic the look and feel of the host website. While the look of native advertisements differs depending on the host website, the underlying goal for marketers is the same – make the advertisement look and feel like editorial content.
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Fashion Documentaries: A Fashion Do
Since the first major fashion documentary featuring designer Isaac Mizrahi, “Unzipped,” made its debut in 1995, the popularity of fashion documentaries has only gained traction. Within the past five years, a smattering of renowned brands, including Marc Jacobs, Louis Vuitton, and Valentino, as well as some fixtures in fashion like Anna Wintour and Diana Vreeland, have allowed cameras to capture their exclusive world of fashion through their respective documentaries. More recently, James Franco, the former face of Gucci, steered his production company toward a collaboration with Gucci’s creative director Frida Giannini, creating the documentary entitled “The Director: An Evolution in Three Acts.” The film, which debuted last spring at the Tribeca Film Festival, documented how a Gucci collection comes together. Even retailers are following suit, with documentaries such as director Matthew Miele’s “Scatter My Ashes at Bergdorf Goodman,” which features the history of New York’s famous luxury department store, making their way to audiences.
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Spring Cleaning and the H-1B Visa Cap
By Dawn Lurie
With comprehensive immigration reform on the horizon and the economy rebounding, the number of H-1B visa filings for foreign temporary professional workers is likely to significantly increase this year. American businesses recognize that to compete in the global economy, smart, competitively trained, and diverse talent is critical. In many industries, foreign workers, including H-1B degreed professionals, are an integral part of such a workforce. There are only a limited number of new H-1B visas issued each fiscal year, and how quickly they are utilized is tied to the economy and market demand. For the 2013 fiscal year, the H-1B cap was reached on June 11th 2012, five months earlier than in FY 2012 when it was not reached until November 23, 2011.Continue Reading Spring Cleaning and the H-1B Visa Cap
Game On!
As companies are presented with the ever-challenging goal of achieving and maintaining brand recognition, many fashion companies are now attempting to engage consumers in both the real and virtual worlds. Gaming represents one non-traditional avenue that has undergone recent growth, as brands find value in connecting with existing and potential consumers through interactive online means.Continue Reading Game On!