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Legal Tech News and Events: December 12, 2022

European Council's CSRD approval and FTC's security mandate to Chegg.

December 12, 2022

Compliance: European Council Approves CSRD

The European Council of the European Union approved new reporting requirements. The EU Corporate Sustainability Reporting Directive (CSRD) will push organizations to have more detailed information when it comes to their sustainability and environmental, social, and governance (ESG) reporting.

With this new directive, investors and other stakeholders will be better acquainted when making decisions on sustainability issues. According to Josef Sikela, "The new rules will make more businesses accountable for their impact on society and will guide them towards an economy that benefits people and the environment. Data about the environmental and societal footprint would be publicly available to anyone interested in this footprint. "

This will be published in the Official Journal of the European Union after the President of the European Parliament and the President of the Council sign it. Then it will enter into force for 20 days and its implementation will occur 18 months later.

Cybersecurity: FTC Orders Chegg to Improve Security

Following several data breaches of Chegg Inc., the Federal Trade Commission (FTC) ordered the California-based company to improve its security.

Chegg student services provider according to FTC has stored sensitive customer data which includes names, email, passwords, and employee information like Social Security numbers, bank account information, and driver’s license numbers in plain text on its network. They also accuse the company’s lax security practices which resulted in four different security data breaches.

Settling the case, Chegg agreed to the following:

A process on the personal information it collects and its deletion.

Provide customer access to their information and an option to delete the data.

Provide customers and employees with two-factor authentication or another authentication method to help protect their accounts.

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