03 Dec A Question for the Judges: Can the FTC Regulate Cybersecurity?
Quote from the Wall Street Journal
Another firm is challenging the Federal Trade Commission’s authority to regulate corporate cybersecurity.
Medical testing laboratory LabMD Inc. is fighting back against an August FTC complaint that alleged the company failed to protect consumers’ personal data.
The move comes as Wyndham Worldwide Corp. continues its legal battle with the regulator, which has faulted the hotelier for a data breach. The outcome of that case could help determine the scope of the agency’s authority.
Lawyers for the two firms say the FTC has no authority to regulate cybersecurity. “Both the Wyndham and the LabMD cases show businesses are ready to force this issue with the FTC,” said Craig Newman, partner at Richards Kibbe & Orbe LLP and chief executive of the Freedom2Connect Foundation, a nonprofit organization that opposesIinternet censorship.