The National Law Forum

FBI and DHS Warn of Russian Cyberattacks Against Critical Infrastructure

U.S. officials this week warned government agencies, cybersecurity personnel, and operators of critical infrastructure that Russia might launch cyber-attacks against Ukrainian and U.S. networks at the same time it launches its military offensive against Ukraine.

The FBI and the Department of Homeland Security (DHS) warned law enforcement, military personnel, and operators of critical infrastructure to be vigilant in searching for Russian activity on their networks and to report any suspicious activity, as they are seeing an increase in Russian scanning of U.S. networks. U.S. officials are also seeing increased disinformation and misinformation generated by Russia about Ukraine.

The FBI and DHS urged timely patching of systems and reporting of any Russian activity on networks, so U.S. officials can assess the threat, assist with a response, and prevent further activity.

For more information on cyber incident reporting, click here.

Even though a war may be starting halfway across the world, Russia’s cyber capabilities are global. Russia has the capability to bring us all into its war by attacking U.S. government agencies and companies. We are all an important part of preventing attacks and assisting others from becoming a victim of Russia’s attacks. Closely watch your network for any suspicious activity and report it, no matter how small you think it is.

Article By Linn F. Freedman of Robinson & Cole LLP

For more cybersecurity legal news, click here to visit the National Law Review.

Red States Move to Penalize Companies That Consider Climate Change When Making Investments

A number of conservative-leaning states, particularly those with a significant fossil fuel industry (e.g., Texas, West Virginia), have begun implementing polices and enacting laws that penalize companies which “pull away from the fossil fuel industry.” Most of these laws focus on precluding state governmental entities, including pension funds, from doing business with companies that have adopted policies that take climate change into account, whether divesting from fossil fuels or simply considering climate change metrics when evaluating investments.

This trend is a troubling development for the American economy. Irrespective of the merits of the policy, or fossil fuel investments generally, there are now an array of state governments and associated entities, reflecting a significant portion of the economy, that have adopted policies explicitly designed to remove climate change or other similar concerns from consideration when companies decide upon a course of action. But there are other states (typically coastal “blue” states) that have enacted diametrically opposed policies, including mandatory divestments from fossil fuel investments (e.g., Maine). This patchwork of contradictory state regulation has created a labyrinth of different concerns for companies to navigate. And these same companies are also facing pressure from significant institutional investors, such as BlackRock, to consider ESG concerns when making investments.

Likely the most effective way to resolve these inconsistent regulations and guidance, and to alleviate the impact on the American economy, would be for the federal government to issue a clear set of policy guidelines and regulatory requirements. (Even if these were subject to legal challenge, it would at least set a benchmark and provide general guidance.) But the SEC, the most likely source of such regulations, has failed to meet its own deadlines for promulgating such regulations, and it is unclear when such guidance will be issued.

In the absence of a clear federal mandate, the contradictory policies adopted by different state governments will only apply additional burdens to companies doing business across multiple state jurisdictions, and by extension, to the economy of the United States.

“Republicans and right-leaning groups fighting climate-conscious policies that target fossil fuel companies are increasingly taking their battle to state capitals. Texas, West Virginia and Oklahoma are among states moving to bar officials from dealing with businesses that are moving to ditch fossil fuels or considering climate change in their own investments. Those steps come as major financial firms and other corporations adopt policies aligned with efforts to reduce greenhouse gas emissions.”

Article By Jacob H. Hupart of Mintz

For more environmental legal news, click here to visit the National Law Review.

Texas AG Sues Meta Over Collection and Use of Biometric Data

On February 14, 2022, Texas Attorney General Ken Paxton brought suit against Meta, the parent company of Facebook and Instagram, over the company’s collection and use of biometric data. The suit alleges that Meta collected and used Texans’ facial geometry data in violation of the Texas Capture or Use of Biometric Identifier Act (“CUBI”) and the Texas Deceptive Trade Practices Act (“DTPA”). The lawsuit is significant because it represents the first time the Texas Attorney General’s Office has brought suit under CUBI.

The suit focuses on Meta’s “tag suggestions” feature, which the company has since retired. The feature scanned faces in users’ photos and videos to suggest “tagging” (i.e., identify by name) users who appeared in the photos and videos. In the complaint, Attorney General Ken Paxton alleged that Meta, collected and analyzed individuals’ facial geometry data (which constitutes biometric data under CUBI) without their consent, shared the data with third parties, and failed to destroy the data in a timely matter, all in violation of CUBI and the DTPA. CUBI regulates the collection and use of biometric data for commercial purposes, and the DTPA prohibits false, misleading, or deceptive acts or practices in the conduct of any trade or commerce.

Among other forms of relief, the complaint seeks an injunction enjoining Meta from violating these laws, a $25,000 civil penalty for each violation of CUBI, and a $10,000 civil penalty for each violation of the DTPA. The suit follows Facebook’s $650 million class-action settlement over alleged violations of Illinois’ Biometric Privacy Act and the company’s discontinuance of the tag suggestions feature last year.

Article By Hunton Andrews Kurth’s Privacy and Cybersecurity Practice Group

For more privacy and cybersecurity legal news, click here to visit the National Law Review.

Federal Criminal Drug Counterfeiting Defense

Introduction: What is Drug Counterfeiting?

Selling fake drugs may subject you to criminal liability under 21 U.S.C. § 331. Section 331 makes it illegal to sell a misbranded or adulterated drug in interstate commerce. The sale of counterfeit drugs must involve interstate commerce. If you sell a counterfeit drug and it crosses state lines, you will have violated this section. For instance, if you buy aspirin in New York and sell it as codeine in New Jersey, then you may be convicted under the federal counterfeit drug statute. In addition, 18 U.S. Code § 2320 – trafficking in counterfeit goods or services – may also apply. This section makes it a federal crime to traffic goods or services and then knowingly use a counterfeit mark in connection with the good or service. An example of a federal crime includes an individual creating a counterfeit drug that replicates a genuine drug, or selling fake drugs. Conduct under this statute includes possessing, manufacturing and then promoting and selling the counterfeit drug to the public.

You may also face liability for criminal fraud under 18 U.S.C. 1001. This section makes it illegal to knowingly and willfully falsify or cover up a material fact; make a materially false or fraudulent statement, or make or use false writing or document knowing that it is false. An example of criminal fraud includes telling a buyer that the product is a powerful painkiller when in fact it is a combination of baby aspirin and vitamins, and you know this. The above sections also apply to black market transactions. For instance, if you tell someone they are buying heroin when you know it is a combination of flour and caffeine, you just knowingly made a materially false statement. This article explains drug counterfeiting, definition, penalties, and tips for choosing a law firm.

Penalties for Drug Counterfeiting

Selling counterfeit drugs or fake drugs can lead to significant penalties. Under 21 U.S.C. §§ 331 and 333, if you are convicted of selling counterfeit drugs across interstate commerce and you had no intent to mislead, you face a fine of up to $1,000 and a sentence of one year or less imprisonment, or both. On the other hand, if you are convicted of selling counterfeit drugs across interstate commerce and you had the intent to mislead, you face a fine of up to $10,000 and up to three years imprisonment, or both. Each sale you conduct is a separate offense—meaning that if you intentionally sell a counterfeit drug to 20 people, you face charges for 20 separate accounts. This amounts to 60 years imprisonment and a $200,000 penalty.

Also, if charged with criminal fraud under 18 U.S.C. § 1001 and convicted, you could face up to five years imprisonment and/or fines of not more than two times the gross gain or loss from the counterfeit drug sale. In addition to penalties and jail time, these charges may lead to loss of your medical license or driver’s license, termination from your employment, difficulties finding another job, loss of your immigration visa, difficulty securing a home to buy or rent, and a permanent criminal record for being a drug offender. Because of this possibility, it is important to retain a federal criminal defense attorney experienced in federal counterfeiting defense. This will give you the best defense and chance of a successful outcome.

“Several years ago, the DOJ announced efforts to expand the scope and extent of its federal investigations into suspected criminal activity as well as to increase both the charges brought and the penalties for violating federal law. Further, many counterfeiting charges require intent to defraud. Without this intent element, you cannot be found guilty. Only an experienced team can tackle this challenge and provide you with a strong defense.” – Dr. Nick Oberheiden, Founding Attorney of Oberheiden P.C.

Four Steps to Take When Choosing Criminal Defense Lawyers

1. Make sure the law firm is focused on federal criminal law. You must be wise when choosing a criminal defense attorney because it can mean all the difference. Now is not the time to go with a junior attorney or the attorney who offers lower costs. Do not choose an attorney who claims to have a good understanding of counterfeiting defenses but who does not have a successful track record. Grand jury subpoenas and investigations are serious matters. Serious matters demand the services of a serious defense team—a defense team with a proven track record in successfully defending clients against federal counterfeiting charges.

2. Pick a law firm with an intricate knowledge of federal counterfeiting. You would not choose a doctor who does not fully understand your medical condition. You would choose the best medical professional for a serious medical condition. Do the same with your criminal defense attorney. A good attorney can find loopholes and exceptions in the law and argue them in your favor. A good attorney will go the extra mile for you. Your attorney should be able to answer questions such as their knowledge of federal counterfeiting, defenses available, their track record of success, federal trial court experience, and experience in federal criminal law.

3. Ask about your attorney´s success rate. An attorney is only as good as the results they obtain. It is important to have an honest attorney-client relationship so make sure to get an honest answer when asking your attorney about their success rates in cases similar to yours. A good attorney is often able to keep federal criminal matters out of the news by ending the federal investigation early on. A successful track record includes obtaining the following results for clients:

Quashing federal subpoenas;
Getting clients acquitted at trial;
Dismissing the entire indictment;
Avoiding criminal charges and penalties altogether; and
Getting sentences of probation over charges that often call for several years’ imprisonment.

4. Pick a law firm that is dedicated and committed to your case. A good law firm demonstrates dedication and open communication to its clients. Your attorney should be committed to fighting for you. It is often easy to tell whether your attorney truly wants to help you or whether they just want to make money from handling your case. Assess the sincerity of your attorney. Similarly, you must be able to freely talk to your attorney. Without open and continuous communication channels, many clients become anxious about the next stages in the investigation.

Conclusion

Drug counterfeiting charges are not to be taken lightly. Charges of criminal drug counterfeiting crimes can be devastating to an individual’s career. Not only can such charges lead to criminal penalties and jail time, but they could also result in the permanent loss of your ability to practice medicine, thereby destroying your reputation. It is therefore critical to retain an attorney that is experienced in federal counterfeiting crimes legislation, delivering strong defenses, and vigorously defending their clients against criminal charges and prosecutions.

Article By Dr. Nick Oberheiden with Oberheiden P.C.

For more about crime, visit the NLR Criminal Law/Business Crimes type of law page.

Is Your School District Ready for the Next Round of Cyber Attacks?

It isn’t if, but when, the next round of cyber-attacks will happen. One common type of cyber-attack that schools face is ransomware, where a hacker takes over a school district’s computer systems and holds the systems “hostage” until the district pays a ransom or can restore the system on its own. Restoration for some districts can be nearly impossible.

Like any other multi-million-dollar organization with sensitive data, schools are unfortunately natural targets for cyber-attacks. Per one leading anti-malware provider, in 2021 alone, 62 school districts and 26 colleges and universities were impacted by ransomware. These attacks disrupted learning at 1,043 individual schools. The recovery costs following an attack can be very significant. For example, Baltimore County Public Schools spent more than $8.1 million on recovery after an attack at the end of 2019.

And it isn’t just the ransom amounts that can be frightening. Public concern over compromised data security, feelings of invasion of privacy, and negative public perception can also pose real and significant consequences for school districts. Imagine the response of a guardian or parent who receives notice that his or her student’s personal information has been compromised. The inability to access necessary computer or network systems may also require schools to close and disrupt both short- and long-term operations. In 2021, on average, a school in the United States experienced seven days of downtime following a cyber-attack before resuming educational operations, and significant additional time was required to fully recover from the attack.

Why Are Schools Attractive Targets?

School districts are appealing targets for two main reasons: (1) school districts often have one of the largest budgets in the community, making them an appealing financial target; and (2) the data school districts store includes highly-sensitive student and employee personal information, including Social Security numbers, health information, and other pupil data. This information can be a gold mine to cyber criminals who are interested in identify theft or simply extorting money from a school district.

What Should School Districts Do?

School district administration should embrace cybersecurity best practices to protect their schools from cyber-attacks. This requires administrators to review current practices and thereafter remain vigilant in conducting an ongoing review of such practices. Here are a few things school districts can do to help protect themselves:

Develop a communication plan. Time is critical when a cyber-attack occurs. It is essential that you are ready to address guardians and parents, the media, and the community, and to work with your insurers and law enforcement immediately when an attack happens. Different laws require notice to individuals affected by privacy breaches. Your district should pre-emptively develop a communication plan so it is immediately ready to address required stakeholders. This communication plan should be routinely discussed with relevant administrators and employees.
Update Systems. Network users should apply software patches and updates as soon as possible. Hackers often exploit systems that don’t timely install patches and updates.
Create a strong password policy. Password policies must require users to update in regular intervals and integrate best practices, including passphrases, sequences and having different passwords for multiple accounts.
Purge outdated technology. Schools may hang on to older devices due to budget constraints. However, older devices may not be as secure as newer systems.
Implement multi-factor authentication to protect network access.

Some tips to help districts recover more quickly include:

Back up essential data frequently. The ability to restore data is a significant factor in determining whether a school district should pay a ransom.
Train employees. Train staff to recognize phishing emails and other types of cyber-attacks.
Develop a cyber-attack response plan. Schools should work with their IT staff, IT providers and legal counsel to pre-emptively develop a plan to handle varying cyber-attacks and return to normal operations.
Evaluate cyber liability insurance coverage. Based on publicly available information, ransom demands vary dramatically: as low as $10,000 to millions of dollars.
Stay in close contact with experienced legal counsel. To the extent protected personal information was accessed or taken, notification to the victims and, in some states, notification to data protection authorities may be required. Legal counsel familiar with these situations help coordinate communication with law enforcement and communication with staff, students, and the public. Legal counsel also communicates with the threat actors, coordinates with your insurance company, and assists with records requests that may come in post-attack.

Most importantly, school districts should engage with their insurance agent, legal counsel and IT staff now to develop and gain a mutual understanding of the process that will be followed at the time of a cyber-attack, as well as best practices that are to currently be utilized by district employees and officials. These pre-emptive, relationship-building opportunities may expose vulnerabilities and will best prepare your district for a cyber-attack. A proactive approach may also help your district avoid an attack altogether or, at a minimum, reduce the damage.

Article By Patrick M. Bergin and Ryan T. Siehr with von Briesen & Roper, s.c.

For more about education, visit the NLR Public Education & Services section.

White House Focuses on Improving the Cybersecurity of National Security Systems

President Biden recently signed a National Security Memorandum on cybersecurity. This memorandum was required by an earlier executive order, which we previously have discussed here. The new memorandum (NSM) requires certain network cybersecurity measures for any government information system that is used for highly sensitive national security purposes. The requirements go into effect on a rolling basis over the next 6 months.

Systems covered include those used for intelligence activities, command and control of military forces, or weapons systems (dubbed, “National Security Systems” or “NSS”). Requirements will include use of multifactor authentication, encryption, cloud technologies, and endpoint detection services. Notably, the NSM:

requires agencies to identify their National Security Systems and report cyber incidents to the National Security Agency (NSA) (the agency tasked with responsibilities over NSS);
authorizes the NSA to create Binding Operational Directives requiring agencies to take specific actions against known or suspected cybersecurity threats and vulnerabilities; and
requires agencies to secure cross domain solutions (i.e., tools that transfer data between classified and unclassified systems).

The NSM also outlines how the cybersecurity requirements will be implemented.

Putting it into Practice: At this point, the NSM is directed only at requirements for agencies (rather than contractors or vendors). But, as we’ve seen in the past, once agencies have new policies and processes in place, these requirements are likely to impact or flow-down to contractors that support National Security Systems.

This article was written by Townsend Bourne and Nikole Snyder of Sheppard Mullin law firm. For more articles on cybersecurity, please see here.

Texas AG Sues Meta Over Collection and Use of Biometric Data

This article was written by the team at Hunton Andrews Kurth. For more articles about biometric information protection, please see here.

Restaurant Greenwashing: Diners Beware or Industry Beware?

In June 2021, a class action lawsuit was filed in California in which restaurant greenwashing was alleged due to sustainability statements made on Red Lobster’s menus. Now, Red Lobster has filed pleadings with the court seeking to have the case dismissed, arguing that plaintiffs failed to establish any colorable claim on which they can prevail. While it remains to be seen what the court will do with the lawsuit, the critical takeaway from the litigation is that any industry, not just the consumer goods industry, must realize that marketing buzzwords such as “sustainable”, “environmentally friendly”, and “responsibly sourced” are in the crosshairs. Now more than ever, globally situated companies of all types that are advertising, marketing, drafting ESG statements, or disclosing information as required by regulatory agencies must pay extremely close attention to the language used in all of these types of documents, or else run the risk of enforcement action or lawsuits.

Restaurant Greenwashing Lawsuit

The 2020 Red Lobster lawsuit alleged that “Seafood With Standards” statements on Red Lobster’s menus regarding the sustainability, traceability and responsible sourcing of its lobster and shrimp were false. Instead, the lawsuit argues, the Maine lobster served by Red Lobster are not sustainably sourced and the farmed shrimp used by the restaurant chain are not responsibly sourced. The lawsuit alleges that Red Lobster’s purveyors instead use environmentally damaging and inhumane methods for catching or harvesting the seafood supplies. As such, marketing statements made on Red Lobster’s menus and in other advertising were false and misleading.

The claims in the Complaint range from allegations that fishing practices harm whale populations to allegations of inhumane treatment of female shrimp to boost reproductivity to allegations of antibiotic and chemical use in shrimp farms to promote rapid growth. The relief sought in the lawsuit is injunctive relied for the court to stop any practices found to be deceptive and misleading, as well as over $5 million in damages (which are as of yet unspecified in terms of exact amount).

Last week, Red Lobster fought back, arguing that the plaintiffs’ allegations regarding the marketing slogan and the information on the restaurant chain’s menus are overbroad. Instead, the company argues, the language on the menus merely invites diners to visit the Red Lobster website to learn more about the company’s commitment to sustainable, tracing and sourcing initiatives. The plaintiffs disagree and argue that an ordinary consumer would not view Red Lobster’s menus as merely a “redirect” to the company’s website, but instead an assertion about the products found on the menu.

Corporate Preparation Is Key

In less than two months in 2022, the fashion industry, the cosmetics industry, and the restaurant industry have seen litigation and regulatory agency activity increase with respect to greenwashing concerns. Restaurant greenwashing complaints provide a natural supply of potential plaintiffs for potential class action lawsuits given the number of consumers that would be subject to the reach of marketing by the industry. We predict that 2022 will see a great degree of regulatory enforcement action and legislation seeking to curb over zealous marketing language or statements that could be seen as greenwashing, and the Red Lobster lawsuit is certainly one to watch to determine the future impact on the industry.

While there are numerous avenues to examine to ensure that ESG principles are being upheld and accurately conveyed to the public, the underlying compliance program for minimizing greenwashing allegation risks is absolutely critical for all players putting forth ESG-related statements. These compliance checks should not merely be one-time pre-issuance programs; rather, they should be ongoing and constant to ensure that with ever-evolving corporate practices, a focused interest by the regulatory agencies on ESG, and increasing attention by the legal world on greenwashing claims, all statement put forth are truly “ESG friendly” and not misleading in any way.

This article was written by John Gardella of CMBG3 law firm. For more articles on greenwashing, please see here.

Restaurant Businesses Entitled to Favorable Employee Retention Credit Treatment

Restaurant businesses have a new opportunity to take advantage of the employee retention tax credit under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, even though Congress terminated the credit Sept. 30, 2021, three months earlier than scheduled. Certain restaurant businesses that thought they were ineligible for this tax credit may be entitled to take advantage of it for wages paid up until this COVID-19 economic incentive ended. Such potential opportunity is a result of IRS guidance that was published in August 2021, the month before the credit ended.

The employee retention credit initially allowed a 50% credit for wages paid for the second through fourth quarters of 2020, and then a 70% credit for wages paid for the first through third quarters of 2021, if the business either had its operations suspended due to COVID-19-related government orders or had a significant decline in gross receipts. Wages paid with a loan under the Paycheck Protection Program were not eligible for the credit. The credit was limited to a maximum of $5,000 per employee for 2020, but this cap was increased to $7,000 per employee per quarter for the first through third quarters of 2021 (total maximum credit of $21,000 per employee for 2021). The credit is applied against the employer’s share of payroll taxes, and to the extent the credit exceeded the employer’s share of payroll taxes, the IRS refunds the difference to the employer.

Impact of PPP Loans and Restaurant Revitalization Grants on Gross Receipts

For 2020, a business satisfied the significant decline in gross receipts requirement for credit eligibility if it experienced a greater than 50% reduction in gross receipts compared to the same quarter in 2019. This test was eased for 2021 quarters to include reductions in gross receipts greater than 20%. When the IRS published its initial guidance, it said gross receipts included tax-exempt income. The assumption was that a PPP loan forgiven or a grant under the Restaurant Revitalization Fund (RRF), both treated as tax-exempt revenue, would nevertheless be treated as gross receipts for determining whether a restaurant business had a significant decline in gross receipts for credit eligibility. Therefore, it would have been understandable if a restaurant owner who had a PPP loan forgiven or received an RRF grant assumed that the amount of the forgiven loan or grant needed to be included in the restaurant’s gross receipts calculation, which may have resulted in not satisfying the decline in gross receipts test. However, the IRS published Revenue Procedure 2021-33 in August 2021, which provides that for purposes of determining whether a business has had a significant decline in gross receipts for a quarter, the business may exclude forgiven PPP loans and RRF grants from its gross receipts. This will increase the likelihood that a restaurant business can pass the decline in gross receipts test to allow the business to claim the credit. Even though this credit ended in September 2021, a company can still claim the credit for prior quarters by filing an amended payroll tax return.

Part-Time Employees

Another important factor in claiming the credit deals with the number of average full-time employees a company had in 2019. The critical thresholds to qualify as a “Small Employer” are 100 or fewer average full-time employees in 2019 for determining the credit for 2020 quarters, and 500 or fewer average full-time employees for 2021 quarters. If the conditions to claim the credit are satisfied – either because business operations were suspended by a government order or the company had a decline in gross receipts – a Small Employer gets the credit for wages paid even though the business is open and the employees are working. On the other hand, larger businesses that surpassed these 100- or 500-employee thresholds could take the credit only if it paid its employees even though they were not working. Note that these 100/500 employee thresholds are determined on a company-wide basis, not on a per-location basis that tested eligibility for PPP loan rules.

In August 2021, the IRS published Notice 2021-49, which states full-time equivalents in 2019 are not counted in determining this 100/500 employee threshold. Some restaurant businesses may have thought they were not eligible to claim the credit because their part-time workers, when aggregated into full-time equivalents, caused the businesses to exceed the 100/500 average full-time employee threshold. However, as a result of this IRS notice, they now may be eligible to file an amended quarterly payroll tax returns to claim the credit.

Better yet, Notice 2021-49 states that wages paid to part-time employees are eligible for the credit – even though part-time employees are not counted toward the 100/500 employee threshold. Some restaurant businesses may have assumed the wages paid to part-time workers were not eligible for the credit, and may be able to file amended payroll tax returns to claim the credit for part-time worker wages.

Cash Tips

Finally, Notice 2021-49 also states that an employee’s cash tips of more than $20 per month are wages eligible for the credit. Some restaurant businesses may have assumed that tips paid by customers were not eligible for the credit, and did not include tips in their claim for the credit. If so, they could file amended payroll tax returns to claim the credit. Of course, to claim the credit for cash tips received by employees, a restaurant business must report the tips as income on the employee’s Form W-2.

In summary, restaurant businesses should revisit their employee retention credit analysis with their legal and tax advisors in light of Notice 2021-49. The benefits could be substantial.

This article was written by Riley Lagesen, Landes Taylor and Marvin Kirsner of Greenberg Traurig law firm. For more articles about employee retention credits, please click here.

Ongoing Canadian Protests Shine Spotlight on Ripple Effect of Supply Chain Disruptions

Although the last two years have seen a nearly never-ending line of supply chain impacts for manufacturers, the latest disruption is also serving to shine a spotlight on the broader impact that relatively small disruptions in the supply chain can have on the global economy. We all know that trucking is a critical component of the economy. The U.S. estimates seventy two percent of goods in the U.S. travel by truck. Trucking has become even more important in this era of increased deliveries and backlogs at ports and other logistics hubs.

In Canada, what began as protests by truckers regarding certain pandemic-related restrictions and mandates have snowballed into broader protests and blockages of roads, bridges, and border crossings.

Protesters have been blocking various bridges and roads in Canada in protest of certain pandemic-related restrictions and mandates. On Tuesday, the bridge connecting Windsor, Ontario to Detroit (a critical linkage for cross-border travel) was largely blocked, with traffic stopped going into Canada and slowed to a trickle going into the United States. The blockades are now leading U.S. automakers to begin trimming shifts and pausing certain operations in their Michigan and Canadian plants. The bridge protests and automakers’ reduction in capacity continued on Thursday without an end in sight.

The ongoing protests in Canada have also served as a reminder of how seemingly local trucking disruptions in one country can cascade through the supply chain. This is not the first time that trucking strikes and blockages have rippled through the supply chain and economy. In 1996, a truckers’ strike in France lasted 12 days, barricading major highways and ultimately leading to concessions from the French government over certain worker benefits and hours. The resulting agreement led to heightened tensions with Spain, Portugal, and Great Britain due to the impact felt across borders. In 2008, truckers went on strike in Spain and blocked roads and border crossings, protesting fuel prices. In 2018, truckers in Brazil staged a large strike and protest that lasted for 10 days, blocking roads, disrupting food and fuel distribution, canceling flights, and causing certain part shortages for automakers.

The ongoing protests in Canada have similarly expanded from Ottawa to the current blockage of border crossings, further raising their profile internationally as they begin to impact global trade. It remains to be seen how the blockades and protests will resolve, as leaders call for de-escalation and re-opening of roads and crossings. However, the ripple effects of what started as a localized protest will continue to be felt far beyond Canada’s borders.

Article By Lauren M. Loew of Foley & Lardner LLP

For more COVID-19 and supply chain legal news, click here to visit the National Law Review.

The National Law Forum

FBI and DHS Warn of Russian Cyberattacks Against Critical Infrastructure

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Federal Criminal Drug Counterfeiting Defense

Introduction: What is Drug Counterfeiting?

Penalties for Drug Counterfeiting

Four Steps to Take When Choosing Criminal Defense Lawyers

Conclusion

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Is Your School District Ready for the Next Round of Cyber Attacks?

Why Are Schools Attractive Targets?

What Should School Districts Do?

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White House Focuses on Improving the Cybersecurity of National Security Systems

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Texas AG Sues Meta Over Collection and Use of Biometric Data

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Restaurant Greenwashing: Diners Beware or Industry Beware?

Restaurant Greenwashing Lawsuit

Corporate Preparation Is Key

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Restaurant Businesses Entitled to Favorable Employee Retention Credit Treatment

Part-Time Employees

Cash Tips

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Ongoing Canadian Protests Shine Spotlight on Ripple Effect of Supply Chain Disruptions

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Introduction: What is Drug Counterfeiting?

Penalties for Drug Counterfeiting

Four Steps to Take When Choosing Criminal Defense Lawyers

Conclusion

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Why Are Schools Attractive Targets?

What Should School Districts Do?

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Restaurant Greenwashing Lawsuit

Corporate Preparation Is Key

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Part-Time Employees

Cash Tips

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