FTC Data Security Authority Remains Murky Despite Wyndham

Law360, New York (April 8, 2014, 2:44 PM EDT) -- In the latest and most important federal court decision on data security enforcement, District of New Jersey Judge Esther Salas broadly upheld the Federal Trade Commission’s authority to police data security under the “unfairness” prong of Federal Trade Commission Act Section 5. The April 7, 2014, ruling denied Wyndham Worldwide Corp.’s motion to dismiss the FTC’s complaint alleging unfair and deceptive data security practices after Wyndham-branded hotels experienced multiple data breaches.

Only weeks earlier, LabMD Inc. ― which has been the subject of a similarly long-running...
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