Aug 252015
 August 25, 2015  Posted by  Breaches, Business, Court, Featured News

I tend to cover these issues more over on, but this appellate opinion from the Third Ciricuit is so significant that it needs to be mentioned here, too.

Caleb Skeath writes:

The Third Circuit released its decision in FTC v. Wyndham Worldwide Corp. earlier today, affirming the district court’s decision that the FTC has the authority to regulate companies’ data security practices under the “unfair practices” prong of Section 5 of the FTC Act.  The highly anticipated precedential opinion dismissed Wyndham’s arguments that the FTC lacks the authority to regulate cybersecurity practices, finding instead that neither Congressional legislation nor the FTC’s prior statements contradicted the FTC’s attempts to assert its cybersecurity powers.  The court also held that Wyndham received fair notice of the potential application of the unfairness standard under Section 5 to data security practices, rejecting Wyndham’s argument that it should receive notice of which specific cybersecurity practices are required to satisfy the Section 5 standard.  Finally, the court held that the FTC sufficiently alleged a “substantial injury” to consumers, as required under Section 5’s unfairness prong.

Read more about the opinion on InsidePrivacy.

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