New York’s Responsible AI Law, DMCC Bill, and Major Privacy Enforcement Cases

Introduction:

Welcome to Fair Monday! We know Mondays can be a bit rough, so we created Fair Monday to bring you weekly insights and resources on dark patterns and digital fairness. Each Monday, we share updates on the latest developments, helping you stay informed and empowered to create a fairer, more transparent digital space.

This Week's Highlights:

1. New York Leads in Responsible AI and Digital Privacy
   The LOADinG Act introduces key safeguards for responsible AI in New York, requiring:
   ➡ Oversight for automated decision-making in state agencies.
   ➡ Regular impact assessments and cybersecurity evaluations.
   ➡ Governor Kathy Hochul emphasized the importance of transparency, accountability, and protecting New Yorkers’ personal data.
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2. UK’s DMCC Bill Targets Big Tech’s Market Power
   The Digital Markets, Competition and Consumers Bill (DMCC) focuses on:
   ➡ Firms with global turnover above £25 billion or UK turnover exceeding £1 billion.
   ➡ Preventing self-preferencing, ensuring data access, and algorithm transparency.
   CEO Sarah Cardell of the CMA stated, “The new regime is designed to keep pace with fast-moving digital markets.”
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3. EU Court Orders Damages Over Improper Data Transfer to Meta
   The EU General Court ruled against the European Commission for transferring user data to Meta through the "Sign in with Facebook" button on an EU website. The case underscores the need for stricter privacy safeguards in public sector services.
   Our Take:
   At Fairpatterns, we champion transparent, privacy-first solutions that help organizations avoid costly errors and ensure compliance with evolving data protection regulations.‍
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4. Apple to Pay $95 Million in Siri Privacy Lawsuit
   Apple agreed to pay $95 million to settle allegations that Siri violated users’ privacy by recording private conversations and sharing them with third parties for targeted ads. While denying wrongdoing, Apple opted to settle to avoid litigation. Class members may receive up to $20 per device.
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5. FTC Warns Big Tech: Prioritize Privacy or Face Enforcement
   The FTC issued new guidance on AI, targeted ads, and surveillance tools, emphasizing:
   ➡ Transparent interfaces and robust data security practices.
   ➡ Avoiding dark patterns and obtaining clear user consent.
   ➡ Citing cases like Vizio, the FTC warned that deceptive practices will face strict enforcement.
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6. CFPB Targets Walmart and Branch Messenger Over Pay Violations
   On December 23, 2024, the CFPB filed a complaint against Walmart and Branch Messenger for:
   ➡ Forcing delivery drivers to use Branch Accounts.
   ➡ Delays, fees, and lack of consent in fund access.
   ➡ Violating the Consumer Financial Protection Act, Truth in Savings Act, and EFTA.
   The lawsuit seeks compensation for affected drivers and compliance from both companies.

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Conclusion:

From New York’s bold stance on responsible AI to the UK’s DMCC Bill and global privacy enforcement cases, this week’s updates highlight the importance of fairness, accountability, and transparency in the digital space. At Fairpatterns, we remain committed to empowering organizations and users alike with ethical solutions and best practices.

Let’s continue working together to build a more transparent, user-centric digital world. Have a fantastic week with Fair Monday!