LabMD Ruling Puts FTC In Driver's Seat On Data Security

Law360, New York (May 13, 2014, 8:41 PM EDT) -- A Georgia federal judge's Monday refusal to disrupt a Federal Trade Commission administrative proceeding against LabMD Inc. solidifies the agency's authority over companies' data security practices, allowing the regulator to tackle even the most novel or controversial privacy issues before any court can weigh in.

The district court's ruling responds to a complaint that LabMD filed in March challenging the FTC's authority to undertake an administrative proceeding accusing the medical testing laboratory of failing to prevent unauthorized access to protected health information.

The case has generated...
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