New European Directive - Liability for Defective Digital Products, Software & AI

A new European Product Liability Directive (the “PLD”) now applies to digital and AI-based products. It replaces its predecessor from 1985. The PLD defines rules of evidence and liability for compensation for property damage, personal injury, and data loss. It applies to any company in the supply chain of software and artificial intelligence (AI) systems to the European Union market, ...

FTC Introduces "Click to Cancel" Rule for Easy Subscription Cancellation

The U.S. Federal Trade Commission (FTC) has announced a new "Click to Cancel" rule, mandating that businesses offer consumers a simple and straightforward way to cancel subscriptions at least as easily as signing up. The rule, primarily targeting "negative option" programs—where subscriptions automatically renew unless actively canceled by the consumer—will mostly come into effect in March 2025, 180 days after ...

UK Regulator Issues Guidance on Use of AI in Recruitment

The UK Information Commissioner’s Office (ICO) has published a report outlining recommendations for the fair and lawful use of artificial intelligence in screening job applicants. Following a sector-wide review, the ICO emphasized the importance of fairness, data minimization, and increased transparency in processing personal information for recruitment purposes.

AI tools can streamline recruitment by filtering unqualified candidates, scoring applicants against ...

U.S. Proposes Rules to Limit Sensitive Data Transfers to Foreign Adversaries

The U.S. Department of Justice (DoJ) has released a draft of new regulations aimed at restricting government agencies and private entities from transferring sensitive personal data to countries deemed adversaries to the U.S., namely China, Russia, North Korea, Iran, Venezuela, and Cuba. These rules are designed to implement a presidential executive order from February 2024.

The draft regulations target categories ...

Researchers of AI Aren’t Exempt from Digital Millennium Copyright Act Restrictions

The U.S. Library of Congress adopted the U.S. Copyright Office’s recommended rule regarding the Digital Millennium Copyright Act (DMCA) application on AI (artificial intelligence) security researchers.

According to the decision, researchers seeking to examine whether AI generates prohibited content—such as discriminatory or explicit material—will not be exempt from the DMCA’s provisions that forbid bypassing digital protection mechanisms that limit access ...

Bank of Israel Issues Proper Conduct of Banking Business Directive on Cybersecurity

Israel’s Supervisor of Banks has released a new directive – Proper Conduct of Banking Business Directive No. 364 – which consolidates and replaces three previous directives on information technology management, cybersecurity, and data protection (Directives 357, 361, and 363). This comprehensive update reflects the banking sector’s need to deal with the growing sophistication of cyber threats and the evolving privacy ...

Public Consultation on the Use of AI in the Financial Sector in Israel

An interdepartmental task force in Israel has released a draft interim report for public consultation addressing the integration of artificial intelligence (AI) in the financial sector, associated risks from predicted use in decision-making or human interactions, and proposed regulatory measures. The consultation period will end on December 15, 2024.

Key issues highlighted by the task force include transparency and explainability, ...

Israeli Government Advances "Spyware Law" Without Anti-Bribery Clause

The Israeli Ministerial Committee for Legislation approved the Bill on Police Access to Computer Material. The bill seeks to authorize courts to issue warrants allowing the police to covertly access computer material without the computer owner's knowledge or presence of witnesses. The bill restricts the warrants only to the investigation and prevention of offenses punishable by more than 10 years ...