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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.

2025 Year End Webinar

2025 was another incredibly active year in state privacy and AI laws with states enacting numerous new laws and amending existing laws and regulations. Enforcement also picked up speed and intensity. Combined, this activity created an ever-increasing and complex patchwork of requirements and obligations on companies.

On November 6, from…

Key point: California’s expansion of its antitrust law — targeting algorithmic pricing and lowering the bar for litigation — signals a major shift in how companies must approach algorithmic pricing tools and compliance.

On October 6, 2025, Governor Gavin Newsom signed into law two significant amendments to California’s Cartwright Act: AB 325 and SB 763. These amendments to the Cartwright Act are the most significant updates to the law in recent years. AB 325 addresses algorithmic price-fixing by prohibiting the use or distribution of pricing algorithms among two or more entities to coordinate prices or commercial terms. SB 763 substantially increases corporate and individual criminal fines for violations. The new laws take effect on January 1, 2026.

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Key point: Of the 15 privacy and AI-related bills passed by the California legislature in the 2025 session that we have been tracking, Governor Gavin Newsom signed 10 into law and vetoed five.

Throughout the 2025 legislative session, we tracked numerous privacy and AI-related bills pending in California. Fifteen of those bills passed the state legislature before the legislative session ended in September. Of the 15 total bills, Newsom signed 10 into law and vetoed five. Those 10 bills that became law consist of three laws related to privacy and seven laws related to AI.

The below article provides a summary of the 10 bills that Newsom either signed into law or vetoed.

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Key Point: California’s existing breach notification statute was amended to include more decisive guidelines for reporting to individuals and regulators.

On October 5, 2025, California Governor Gavin Newsom signed SB-446 into law, which bill sponsor Sen. Melissa Hurtado (D-CA) indicates is aimed at “closing a critical loophole” in California’s existing breach notification statute. Below, we first provide a brief background on the scope of the law and then discuss the amendment.

This article was republished in ALM’s Cybersecurity Law & Strategy Newsletter on October 31, 2025.

Key point: The rules provide further guidance to controllers subject to the law’s children’s privacy protections.

On October 9, 2025, the Colorado attorney general’s (AG) office announced final revisions to the proposed draft amendments to the Colorado Privacy Act (CPA) rules. The office published draft rules in July and solicited public comments. The final revisions reflect changes to the rules based on those public comments. The office has requested an AG opinion letter for these rules. After the opinion letter is received, the rules will be filed with the secretary of state for publication in the Colorado Register. The rules will become effective 20 days after publication.

In the below article, we provide a brief summary of the changes.

Key point: A federal district court judge rejected the claim that the disclosure law violates the First Amendment.

On October 8, 2025, a judge for the U.S. District Court for the Southern District of New York granted the New York attorney general’s (AG) motion to dismiss a lawsuit filed by a retail trade association claiming that New York’s Algorithmic Pricing Disclosure Act violates the First Amendment. Below, we provide a brief history and summary of the law and analysis of the court’s decision.

Key point: California lawmakers once again increase the disclosure and transparency requirements for registered data brokers.

On October 8, 2025, California Governor Newsom signed SB 361 into law. The bill amends California’s existing data broker registration law to require data brokers to provide significantly more disclosures regarding their processing activities when annually registering with the California Privacy Protection Agency (CPPA).

This amendment comes shortly after the CPPA board’s recent approval of amendments to the state’s data broker regulations to incorporate the 2023 Delete Act (SB 362), including the creation of an accessible deletion mechanism that data brokers will need to comply with starting in August 2026. Those regulations were filed with the Office of Administrative Law on September 26.

Given these developments, California data brokers will need to engage in additional compliance measures in the coming months. In the below article, we provide an overview of the changes made by SB 361.

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Key point: California enacts first-in-the-nation law focused on regulating frontier artificial intelligence models.

On September 29, 2025, California Governor Gavin Newsom signed SB 53 — the Transparency in Frontier Artificial Intelligence Act (TFAIA) — into law. As explained in the Senate floor analysis, the law “requires large artificial intelligence (AI) developers . . . to publish safety frameworks, disclose specified transparency reports, and report critical safety incidents to the Office of Emergency Services (OES).” The law also “creates enhanced whistleblower protections for employees reporting AI safety violations and establishes a consortium to design a framework for ‘CalCompute,’ a public cloud platform to expand safe and equitable AI research.” The law was hailed by both Newsom and its primary sponsor, Senator Scott Wiener, as striking a proper balance between innovation and placing sensible guardrails on frontier AI models.