14 Oct Senate Asks FTC To Explain Due Process in LabMD Case
Source: Paul Merrion from CQ Roll Call
Two senior Republicans on the Senate Judiciary Committee are questioning the constitutionality of the Federal Trade Commission’s data security enforcement in the closely watched LabMD Inc. case.
Their letter to FTC Chairwoman Edith Ramirez last month posed pointed questions about due process in the agency’s recent decision against LabMD, which reversed the dismissal of the case by an administrative law judge who found no harm resulted from a 2008 theft of patient data.
The letter was included as an exhibit in an Oct. 6 filing by LabMD’s founder and CEO, Michael Daugherty, in the 11th U.S. Circuit Court of Appeals in Atlanta, where the defunct medical testing firm is appealing the FTC’s decision and an order requiring patient notification and new computer system safeguards.
The two senators who signed the letter — Jeff Flake, R-Ariz., and Mike Lee, R-Utah — said they are reviewing the FTC’s LabMD decision.
“However, a more immediate and persistent concern is the extent to which the FTC’s cybersecurity regime complies with the protections of due process under the constitution,” they wrote.
Flake is the chairman of the Senate Judiciary Subcommittee on Privacy, Technology and the Law, while Lee is chairman of the panel’s Subcommittee on Antitrust, Competition and Consumer Rights.
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