A China-focused bulk data security rule is creating new legal risks for companies using pixel tracking, according to a March 12 statement from the R Street Institute.
The issue matters because plaintiffs may use the Bulk Sensitive Data Rule (BSDR), which was designed as a national security measure, in broader litigation strategies. This could affect how companies manage their compliance and how courts interpret these rules.
Haiman Wong, Resident Fellow of Cybersecurity and Emerging Threats at the R Street Institute, said, “Plaintiffs may take the BSDR, intended as a national security tool, and ‘stretch its original intent’ as part of a broader litigation strategy as the lawsuits ramp up.”
Wong also said that early court decisions on these cases could have wide-reaching effects. “How judges rule in these early cases ‘could have significant implications not only for how companies interpret their compliance obligations, but also for how national security-driven data governance rules evolve going forward,’ she said.”
Observers are watching closely to see how these initial lawsuits unfold and what impact they will have on future regulations.
