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Kim Phan

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Kim is a partner in the firm’s Privacy + Cyber Practice Group, where she is a privacy and data security attorney, who also assists companies with data breach prevention and response, including establishing effective security programs prior to a data breach and the assessment of breach response obligations following a breach.

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Key point: All businesses struggle with cybersecurity risks presented by their service providers. New guidance from the NY DFS applies to all DFS regulated entities, but the guidance would assist any business in any industry in addressing these risks.

On October 21, 2025, the New York Department of Financial Services (the “DFS”) issued important guidance for covered entities (including all DFS licensees) for managing their cybersecurity risk related to third-party service providers (“TPSPs”). Industry Letter – October 21, 2025: Guidance on Managing Risks Related to Third-Party Service Providers | Department of Financial Services specifically includes the covered entity’s use of cloud, file transfer, AI and fintech providers (“Guidance”). According to the DFS, the “Guidance does not impose new requirements or obligations . . ..” Rather, “it is intended to clarify regulatory requirements, recommend industry best practices . . ., and promote compliance . . ..” The Guidance highlights that managing the cybersecurity risk presented by TPSPs “remains a crucial element of a Covered Entity’s cybersecurity program,” and notes that it applies to all covered entities, regardless of size.

Key point: Plaintiffs’ attorneys have started sending a wave of letters asserting opt-out and access rights under California’s Shine the Light law.

Over the last three months, businesses have been receiving requests from California residents seeking to exercise their rights under California’s Shine the Light law, Cal. Civ. Code § 1798.83. These requests are sent by attorneys who purport to represent a California resident who is a “customer” of, and has an “established business relationship” with, the business receiving the request. The requests seek an accounting of the customer’s personal information disclosed to third parties for direct marketing purposes within the past year.

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On June 2, the New Jersey Division of Consumer Affairs announced the publication of new proposed regulations to implement the New Jersey Data Privacy Act (NJDPA), N.J. Stat. §§ 56:8-166.4 et seq., which went into effect on January 15. (Please see our prior article on the NJDPA for more details.) Although many of these proposed regulations appear familiar – similar to the finalized regulations under the California Consumer Privacy Act (CCPA) and the Colorado Privacy Act (CPA) – New Jersey introduced several new requirements worth noting.