Disclose or Else: FTC Steps Up Prosecution of Social Media Influencers

In September 2017, the Federal Trade Commission brought its first-ever action against a social media influencer for failing to make appropriate disclosures on sponsored posts. Going forward, anyone who posts sponsored material or even tags a brand in a post should seriously consider the possibility of FTC prosecution.

President Trump Issues Executive Order Blocking Proposed Acquisition of Lattice Semiconductor

For only the fourth time in 30 years, the President blocked the proposed acquisition of a U.S. company following a review by the Committee on Foreign Investment in the United States (CFIUS). The alert explains the reasoning behind the Executive Order that prevented a Chinese consortium from acquiring a U.S. semiconductor company at a time when concerns about Chinese investment in the United States are growing.

Two-Minute Warning: Preparing for a Possible Government Shutdown

For U.S. government contractors, the fallout from a threatened shutdown—let alone an actual one—ranges from inconvenient to disastrous. Businesses that derive significant profits from government contracting should consider a range of contingency planning options.

The Internet Stole My Face: New Advances in Technology Could Make Everyone a Digital Video Puppet

Visual effects artists can create realistic digital replicas of actors that can be manipulated like puppets, and new developments in software technology could soon make digital puppetry accessible to the masses. Protections against unauthorized use of digital replicas can involve copyright or traditional tort claims, but if this technology continues to spread, the difficulty in controlling one’s own likeness will probably increase.

New Executive Order Imposes Further Sanctions on Venezuela

On August 25, President Trump issued an Executive Order providing for sanctions against the Government of Venezuela targeting certain long-term financial transactions, similar to existing sanctions on the Russian petroleum sector. The Order does not restrict imports or exports of oil, and the Treasury Department’s Office of Foreign Assets Control issued several general licenses that provide for specific permitted activities.

DOE Opens the Door to Major Energy Market Reforms

In August, the Department of Energy published a much-anticipated study analyzing the market hurdles facing conventional baseload generation, such as coal, nuclear and hydropower. The study sets the stage for a high-stakes debate before the Federal Energy Regulatory Commission.

Time Will Tell If Trump Infrastructure Executive Order Shortens Federal Reviews

On August 15, President Trump issued an Executive Order that seeks to streamline federal environmental review and approvals of major infrastructure projects by imposing new timelines and procedures. Key provisions create a two-year deadline for completing review and issuing authorizations.

Possible Further Delay of ERISA Fiduciary Rule

In August, the Department of Labor (DOL) and Secretary of Labor submitted a proposal to the Office of Management and Budget (OMB) to delay the applicability date of certain parts of the “Fiduciary” rule until July 1, 2019. While the full rule’s future is unclear, until the DOL issues further guidance, plan sponsors and named fiduciaries should expect that its remaining portions, including BICE and the Principal Transactions Exemption, will become applicable January 1, 2018.

The Doxing Dilemma: A Popular Tactic of Social Activists and Cyber Bullies Alike Remains Mostly Legal

Doxing, the gathering and public distribution of information such as photographs, telephone numbers and addresses found on the internet, may be done to harass or bully someone, or as a form of vigilante activism. While tort remedies could be available, it remains to be seen whether legislation can effectively target doxing without infringing on freedom of speech.

Brace for 2018: The SEC’s Pay Ratio Rule

Starting in January 2018, public companies must disclose the ratio between their CEO’s salary and the salary of the company’s “median employee.” This article reviews SEC guidance on those calculations, and provides a six-step plan to prepare your company for the new requirements.

Chemicals, Compliance and the Toxic Substances Control Act

The Toxic Substances Control Act (TSCA) required the compiling of a national register of chemicals that were manufactured in or imported into the United States for a non-exempt commercial purpose, and the first TSCA Inventory in 1979 included approximately 62,000 chemicals. Since then, the Inventory has been expanded to include approximately 90,000 chemicals—a rate of over 700 new chemicals per year.

Fake and Consequences: Weathering the Reputational Risks and Financial Fallout of “News” that Abuses

False stories, whether created for fun, mischief or money, quickly become a nuisance to businesses trying to protect their brands and maintain their reputations. Although businesses injured by fake news stories may find refuge in existing laws, Section 230 of the Communications Decency Act (CDA) presents a significant barrier by protecting providers and users of interactive computer services from liability as publishers of information provided by third parties.

Three Birds with One Stone: New Russia, North Korea and Iran Sanctions

On August 2, 2017, President Trump signed into law the Countering America’s Adversaries Through Sanctions Act (CAATSA), strengthening U.S. sanctions on Russia, North Korea and Iran. The new sanctions could have far-reaching implications for companies and investors, although it remains unclear how vigorously they sanctions will be implemented, particularly for Russia.

OFAC Updates FAQs on the Cuba Sanctions Program

On July 25, 2017, the Office of Foreign Assets Control (OFAC) updated its Cuba FAQs to address upcoming changes to Cuba sanctions rules as they relate to pre-existing contracts, licenses, and travel arrangements. The new OFAC guidance addresses upcoming changes to its Cuba sanctions as they relate to pre-existing contracts, licenses, and travel arrangements.

New York City’s “Freelance Isn’t Free” Act Also Isn’t Waivable

A New York City law that went into effect on May 15, 2017 requires any person or entity hiring an individual independent contractor who will perform work in New York City to put the terms of the independent contractor relationship in writing if the contractor will be paid $800 or more. This article reviews the final rules for implementing the Freelance Isn’t Free Act.

Senate Minority Leader Urges President Trump to Suspend Chinese Acquisitions of U.S. Companies

Senate Democratic Leader Chuck Schumer has written to President Trump asking him to order the Committee on Foreign Investment in the United States (CFIUS) to suspend the approval of all covered transactions by Chinese entities. This article discusses Sen. Schumer’s position and possible upcoming legislative action.

FTA Proposes Rule Waiving Regulatory Burdens on Public-Private Partnerships (P3s) for Public Transportation Projects

The FTA has proposed new rules to encourage the use of public-private partnerships (P3s), joint developments and other private investment mechanisms in surface transportation. Under the proposal, a P3 can obtain a divergence from certain existing FTA requirements, as detailed in the article.

Startups Beware: California Expands Workers’ Comp to Include Corporate Officers, Directors and Working Partners

In January 2017, the California legislature expanded the scope of mandatory Workers’ Comp coverage to include a business’s corporate officers, directors and working partners. This article outlines the new coverage requirements.

Keeping up with Cayla: Concerns over Interactive Toys Spur an FTC Update of COPPA Guidelines

Consumer groups have filed a complaint alleging that My Friend Cayla, an internet-connected doll, violates the Children’s Online Privacy Protection Act (COPPA) by facilitating the collection of children’s communications and uploading them for commercial use without verifiable parental consent. The Federal Trade Commission’s June 2017 update to COPPA added internet-connected toys, children’s products that collect personal information, and voice-activated devices to the products and services covered.

China Updates New Industry Catalogue: PRC Reduces Regulatory Procedures for Foreign Investments Following its 2016 Reforms

The National Development and Reform Commission and the Ministry of Commerce of the People’s Republic of China’s 7th updated version of the Catalogue of Industries for Foreign Investments, became effective July 28, 2017. The Catalogue opens various previously restricted industries to foreign investors (mainly in services, manufacturing and mining) and includes a “negative list” of industries that will require special pre-approval and examinations for foreign investments.

PFLL Withholding Begins: New York Employers May Begin Deducting from Employees’ Pay to Fund Paid Family Leave

On January 1, 2018, New York’s Paid Family Leave Law (PFLL), which is funded entirely through payroll deductions and is the most expansive in the nation, will go into effect. New York employers should start withholding from employee paychecks and obtaining PFLL insurance in 2017, to prepare for full compliance.

A Message to China? New U.S. Sanctions and AML Measures for North Korea

In June 2017, the U.S. Treasury Department announced sanctions designations and anti-money laundering measures against Chinese entities engaged in business with North Korea. The actions may be intended to send a political message.

The Safe DRONE Act of 2017: The Newest Drone Bill on the Block

In June 2017, U.S. Senators introduced the Safe DRONE Act of 2017, one of a number of bills aimed at addressing the regulatory needs of the unmanned aircraft systems (UAS) industry. Current federal efforts focus on keeping up with technological advancements and creating a uniform framework for UAS-related laws.

CFIUS and Real Estate

The expanding influx of foreign investments in U.S. real estate has drawn the attention of three key U.S. Senators amid national security concerns.

New Details Emerge on Legislative Proposal to Modernize CFIUS Process

A bipartisan group in Congress is working to modernize the Committee on Foreign Investment in the United States (CFIUS) review process due to increased foreign direct investment and perceived threats to national security. The proposed legislation would focus on nations posing the greatest threat and give CFIUS clearer authority to review investments.

Up in the Air

Trump Administration officials followed up on the President’s June 1 announcement of U.S. withdrawal from the Paris climate accord by announcing that the Administration was reviewing U.S. participation in ICAO’s global aviation emissions offset and trading regime.

Blockchains, Smart Contracts and Real Estate

The real estate industry is frequently identified as one of the most likely early adopters of blockchain technology and smart contracts. However, industry participants remain skeptical as to the timing and magnitude of the expected changes. That is understandable given the close association of blockchain technology with bitcoin controversies, other virtual currencies and some questionable crowdfunding ventures.

Recognition of Smart Contracts

New laws and other legal developments are clearing the way for the use of smart contracts in the United States.

Executive Order on Cybersecurity: Considerations for Business

The long-awaited Executive Order on Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure represents the Trump Administration’s first significant action to support cybersecurity and protect critical infrastructure, and the initial days after its release generated a flurry of questions on the specifics of the White House’s cyber agenda.

With GDPR, Companies Must Act Now

Pillsbury’s European Data Privacy & Cybersecurity practice leader Rafi Azim-Khan talks to Bloomberg BNA about the global impact of the EU General Data Protection Regulation. The interview explores expanded monetary risk and accountability under the GDPR, and what companies should—and should not—do to become GDPR-ready.

The Rapidly Evolving Legal Landscape for New York Employers

New York employers need to prepare for compliance with the most expansive paid leave law in the country and need to ensure compliance with New York’s wage transparency law and minimum wage and salary thresholds for exemptions from overtime, which are significantly higher than those under federal law.

How Companies Can Take Advantage of President Trump’s Plan to Roll Back Federal Energy Regulation

President Trump’s March 28 Executive Order requires every federal agency and Department to identify and potentially suspend, rescind, or relax federal regulations, policies, prior agency orders and guidelines that impede U.S. energy development or use. In this roundtable discussion, Sheila Harvey, Jeffrey Merrifield, Matthew Morrison and Andrew Weissman examine the implications of the Executive Order and how it could affect businesses in 2017 and beyond.
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Bill Banning Streaming Video Tax Rejected

On April 24, 2017, the Assembly Committee on Revenue and Taxation voted unanimously to postpone for at least one year a bill that would temporarily ban California localities from taxing streaming video services.

DC Lawyer: Trump Executive Order ‘Literally Applies to Everything’ the Federal Government Does with Energy Development

Washington, DC Energy senior counsel Andrew Weissman told The Washington Post that legal professionals and industry experts, among others, are just beginning to grasp the scope of the March 28 order. According to Weissman, the order has far-reaching effects on “almost every environmental regulation that affects energy in any way,” in addition to non-environmental regulations.

Internet Vino Veritas: Rules and Guidelines for Social Media Efforts Related to Alcohol Sales

Highly regulated products like alcohol, however, pose a special situation for online sales. Federal and state laws regulate the sale of alcohol in traditional brick-and-mortar stores, but these regulations also extend to the internet, and how these regulations are applied to an online environment is much more complicated. Each state has its own set of laws restricting the sale and purchase of alcohol, so depending on which state you live in, the restrictions differ.

Don’t Rock the Vote: Helping State and Local Governments Fend Off Cyber Attacks

Voting in local, state and national elections could be viewed as a rudimentary form of social media, by which voters share their views and preferences via selection of a candidate or party platform. The distance between this “old school” social media and its multi-headed modern form has shrunk thanks to the advent of electronic voting machines and online voting. But, as always, with the implementation of new technologies comes new risks.

How Does a Freeze in Federal Hiring Affect Patent Examination Timelines?

While such a hiring freeze may not have an immediate impact on patent application pendency and/or examination quality, due to the relatively high attrition rate of the patent examining corps, the examination timeline and quality may be affected in the future. In particular, technologies having greater upfront value, including internet-based technologies and platforms, and clients relying on patent portfolios for valuation will be most acutely impacted

EU Proposes Significant Changes to Anti-Money Laundering Laws

Earlier this year, European law makers approved important amendments to the EU’s Anti-Money Laundering (AML) Directive that would implement new rules to combat money-laundering, terrorism financing and tax evasion.

“Buy American, Hire American”—From Rhetoric to Regulation

“We will follow two simple rules: buy American and hire American.” While world leaders are pondering what these words from President Trump’s Inaugural Address mean for international trade, a different question looms for U.S. Government contractors—what is on the horizon as far as the Buy American Act and similar protectionist regulations?

Human Rights and Global Supply Chains

Fashion retailers need to be vigilant to prevent human rights abuses in their supply chains whilst complying with their legal obligations.

The Musical Twitter Bot: Who Has the Copyright for A.I.-Facilitated Works?

If a computer program generates a creative work—be it a song, book or other creation—is there a copyright to be owned? If so, who owns and gets to collect on the copyright?

Managing the Cybersecurity Risks of the Medical Internet of Things

The cybersecurity ramifications of the Internet of Things (IoT) are perhaps nowhere more crucial--potentially a matter of life and death, in fact--than in the realm of medical devices. Until recent times, a potential hack of the data-sharing that is a hallmark of the IoT raised far more privacy concerns than actual health risks. However, as medical devices begin to evolve and make use of the connectivity of the IoT, this balance may change.