FTC Denies LabMD's Bid To Dismiss Data Security Suit

Law360, Los Angeles (January 17, 2014, 8:11 PM EST) -- The Federal Trade Commission on Thursday refused to dismiss its closely watched data security suit against LabMD Inc., rejecting the company's contention that the agency lacks the statutory authority to tell companies how to secure their data.

In a unanimous ruling denying LabMD's motion to dismiss, the FTC reiterated its position that the FTC Act allowed it to regulate data security practices and bring enforcement actions targeting them. Commissioner Julie Brill recently recused herself from the case and didn't take part in the decision. 

"Presented with the concrete circumstances of this case, the commission concludes that it can and should address whether...

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