FTC Can't Set Data Security Standards, LabMD Says

Law360, New York (September 20, 2013, 5:36 PM EDT) -- LabMD Inc. on Thursday shot back at the Federal Trade Commission's allegations that it failed to reasonably protect the security of consumers' personal information, saying the claims should be tossed because the agency lacks the statutory authority to tell companies how to secure their data.

In its answer to the commission's Aug. 29 administrative complaint, LabMD adamantly denied that it had violated Section 5 of the FTC Act, and blasted the commission for passing judgment on data security issues that fell outside of its statutory authority...
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