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LightYear Is FTC's Data Security Warning To B2B Companies

Law360 (June 14, 2019, 1:50 PM EDT) -- The Federal Trade Commission’s recent settlement[1] with a software developer for automotive dealerships is a stark warning to business-to-business companies processing consumer information to improve their data security and may be a major expansion of the scope of the FTC’s Gramm-Leach-Bliley Act enforcement program. The settlement indicates a renewed focus on supply chain security risks at the FTC and also a broad understanding of who the FTC considers to be a “financial institution” subject to the GLBA Safeguards and Privacy Rules.

B2B Companies Can Be Targeted by the FTC

The target of the enforcement is a company called LightYear Dealer Technologies...

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