FTC Cybersecurity Cases Highlight Benefits, Risks Of Settling

Law360 (August 23, 2019, 2:49 PM EDT) -- Amid mounting pressure to pursue cybersecurity more aggressively, the Federal Trade Commission, the federal government's most active enforcer in the space, has recently imposed increasingly stringent cybersecurity requirements in its consent orders. Given that FTC consent orders typically carry 20-year terms and a potential fine of $42,530 (which the FTC may contend applies to each consumer subject to a breach),[1] it is vital for companies faced with an FTC cybersecurity investigation to take every possible step to narrow the scope of relief requested by the FTC. 

Several recent FTC cybersecurity settlements illustrate an emerging pattern: A company that litigates may secure...

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