FTC V. Wyndham: How Far Can The FTC Go In Data Security?

Law360, New York (December 11, 2012, 3:42 PM EST) -- In the wake of the Federal Trade Commission’s increasingly active enforcement of data privacy violations, a recent case, FTC v. Wyndham Worldwide Corporation, raises the interesting and controversial issue of the scope of the FTC’s authority to regulate data security in the absence of specific legislation. How far can the FTC go in establishing and enforcing data security standards under its purported “unfairness” authority? This case will provide much-needed guidance in answering this unresolved question.

In June 2012 — in what Wyndham calls “unprecedented litigation” —...
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