Blog

11 Jul Two cases could disrupt FTC’s data security authority

Screen Shot 2016-01-11 at 11.12.54 AM

Quote from SC Magazine

It is commonly said that all businesses should expect to be breached at one point or another. And after that, the Federal Trade Commission (FTC) could come knocking.

But hotelier Wyndham Worldwide and medical testing provider LabMD are two companies that are pushing back against separate investigations launched by the consumer protection agency, which asserts that the two companies experienced data breaches that exposed sensitive client information. The results of the cases could decide whether the FTC can continue to punish companies that have been breached.

Mark Eichorn, assistant director of the division of privacy and identity protection at the FTC, told SCMagazine.com that the Wyndham case was filed and briefed in Arizona, and recently changed venues to New Jersey, where there is a pending motion to dismiss filed by Wyndham.

“That motion has been briefed for a while,” Eichorn said, explaining that a ruling expected in mid-June never came to pass, and now it’s just a question of when the court will rule on it. “In Arizona, it was pending for a while and was never ruled on,” he said.

While he could not comment on the LabMD proceedings, since they are not currently available to the public, he did say that a motion to dismiss the complaint was rejected by the FTC – meaning LabMD is required to respond to the FTC’s Civil Investigative Demand (CID).

Read More

11 Jun What is Really Going on When a Government Agency Comes Knocking on Your Door? (Part 2)

picking right back up where I left off in my last post…

Stage three: Find their favorite “violator”.Michael J. Daugherty What to do when a Government agency comes knocking at your door

There are typically two types of victims; those too vulnerable to fight back or those so big they will sign whatever the Feds want just to make them go away. Don’t play along and the Feds will start their slow burn of consuming your time and money. Most of the time big corporations can withstand the assault on their reputation, so they take the hit and roll over. (Justice, truth, fairness?…..oh grow up)

The Feds rarely want to go to court because they may lose. The corporations don’t want to battle the bottomless pit of taxpayer money that the Feds will waste.  Nor are they keen to lose their focus on their responsibilities to customers and shareholders.  This rationalizes a settlement where “they admit no wrongdoing”. The world will forget. The experience is chalked up to bad luck and the cost of doing business. The Feds get to take the bone to Congress and their bosses pretending they actually achieved something. Everyone goes on their merry way in this latest episode of “Short Attention Span Theater”.  There are rarely trials or outside parties giving objective opinion of these shenanigans.

Once the government actors get all puffed up with their entitled superiority of saviors of the world, they know no shame. Their sense of justice numbed ages before, they start picking on the small and vulnerable. Their path of destruction goes hidden as many are left for dead, but occasionally a small champion will survive, stand up, and say no. The EPA had their typical day as professional bully on brief display when the Supreme Court slapped them down 9-0 when they picked on and destroyed an Idaho couple. See this video on Obama’s corrupt EPA

Stage Four:  Killing the few survivors that dare fight back.

The narcissists that fill our agencies are very threatened by the very idea of their balloon of superiority being popped when anyone dares challenge them.  They will go in for the kill just to squash anyone else from getting the same idea. Perversely, they find these little people with nerve almost cute. The case itself becomes irrelevant. Now we are talking their keeping their stick as big as they want it to be, so the Feds become hell bent on showing the world what they do to people that have the gall to stand up to them. Yes, it is a steep mountain to justice when fighting the Feds. They do everything they can to keep you inside their agency, and Congress and the Judiciary enable these torture tactics. You might as well check off every internal administrative appeal and objection as a requirement to go through before the Judicial system will pay attention to you. After all, they may be different branches of government, but they are all part of the same team.

Once you have gotten to the courts, assuming you won the lottery and got a decent judge, you may have a chance. The price of getting to this point in the game is probably no less than a quarter of a million dollars. Take a breath. You are still in the fifth inning.

Now the game has changed from “Your unlucky number has been pulled for an inquiry” to “The Constitution is only for high school civics class”.  The Feds will continue to drain you dry all the way to the Supreme Court. By this point, few salmon survive the swim this far upstream.

Stage Five: The rare champion that stands victorious gets forgotten.

Should you win the game after years of running in the US Government marathon you can expect one final strategy from our overreaching team of zombies: Ignore the messenger. Their delicate egos unable to comprehend the utter fraud of their life’s mission, they will wall off any memory of your existence and return to stone silence. Lawyers will come and go, join a DC law firm, keep the silence, and new spawns of academia will enter the system to continue their miles wide and inch deep mission. Bone chilling.

This won’t stop until we realize that power mongering is neither a corporate condition nor a government condition. It is a human condition. The founding fathers knew that. Do we?

 

If you enjoyed reading this article, sign up for my newsletter and follow me on:

Facebook |  Twitter  |   Google+  |  Pinterest  |   LinkedIn

The Devil Inside the Beltway can be purchased:

Amazon  |   Kobo  |   B&N   

Read More

08 May What is really going on when a government agency comes knocking on your door? [Part 1]

Oh what I know now that I wish I knew back in 2008. Allow me to sum it up.

If a government agency comes a knockin’ at your door, don’t answer it. Make them work work, work, work for it. If they are in your space, trust me, they already think you are guilty. They are just checking off their “formality” list before they knock you on your ass.

Here’s how they do it.

Stage one: Congress creates a government agency to run out and save the world.

These congressional offspring give themselves self-righteous titles that imply you are a heartless villain and the justification for their existence if you disagree with them. Agencies love to play good cop vs. bad guy. In their theater the only role left for you to play is villain.

Among their favorite Oscar winning roles:

Protector of the environment
Protector of the consumer
Protector of the internet (currently playing in DC as we speak)What is really going on when a government agency comes knocking on your door? [Part 1]
Protector of the patient
Protector of the borders

Stage two:  Chock the departments full of lawyers and zealots that have rarely, if ever, worked in the worlds they regulate. This is the main reason they believe their own crap. Sort of like thinking you know everything about France because you have read about it but have never actually been there. They dig around in their sandbox for someone they can make an example of.  They don’t have the resources or time to go after everyone they think is guilty. In their minds that would be everyone. They use the terrible stench of fear to scare those they don’t attack.

In my next post I’ll finish stages 3-5 and address how they handle the victims and those who dare to fight back!

 

 *   *   *

If you enjoyed reading this article, sign up for my newsletter and follow me on:

Facebook |  Twitter  |   Google+  |  Pinterest  |   LinkedIn

The Devil Inside the Beltway can be purchased:

Amazon  |   Kobo  |   B&N   

Read More

14 Mar The Congressional Medical License to Practice Obamacare

Obamacare law

Look at that picture of the Congressional Medical License. Isn’t that impressive? (Some people refer to it as the Obamacare law, but I think my name is more accurate). I sure am glad that all those DC folks went to medical school so they would acutely understand what they were messing with.

Feel better? Think about that when your loved one or, God forbid, even you, are rolling into surgery or getting chemotherapy.  Good thing those politicians have our backs, what with death such a permanent thing and all. After years of seamless government operations and efficiency, it only makes perfect sense that they should challenge themselves with trying to manage our very survival. They do everything else so well, it just seemed like a good time to tackle something that would really give the US Government a stretch. It is also comforting to know that Congress is perfectly capable of policing itself. I hear rumors that incoming congressmen have to take a medical ethics class during orientation; if you ask me, that is just an obvious and smart move.

And the fact that it has been signed by the Medical Director himself, Barack Obama, really makes me sleep well at night. No grand social experiment on us guinea pigs here, oh no. He has years…I mean months…I mean days, of actual “roll up your sleeves” real world experience in oncology, infectious disease, urology, neurosurgery, cardiology, geriatrics, medical devices, pathology, clinical chemistry, pharmaceuticals, emergency medicine, molecular diagnostics, internal medicine, obstetrics, gynecology, and orthopedics.

Nancy Pelosi took an online advanced placement course in medicine and blew away the numbers, so of course she has not seen the Congressional Medical License (said she didn’t need too). However, she still leaned forward enough to lead the charge. When plastic surgery was being debated, our Medical Director and Chief, knowing his limitations and the time bomb he was dealing with, called in Nancy Pelosi for some insight. Ever the penny pincher and not wanting to mess with the face of America, she recommended that plastic surgery not be included in the bill. I love a fiscal conservative.

As the baby boomers get sick and need all these services, like a tsunami coming for the coast, the younger people will just have to pick up the check; they should not worry. By the time they are ready for the gurney all the bugs will be worked out of the system. If they have a problem I am sure they will be able to contact our Medical Director at his Presidential Library in Hawaii. Not sure what he will be able to do, being long gone and all, but he does enjoy listening. After all, that is what Nancy Pelosi said just last week on TV. Really, Google it if you don’t believe me.

 

 ~ ~ ~

MichaelDaugherty-PBBAdvisoryBoard

Michael Daugherty is President & CEO of LabMD, an Atlanta-based clinical and anatomic medical laboratory with a national client base. Mike founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corporation.

Outside of LabMD, enjoys playing tennis, travel, and flying his Cirrus SR22 Turbo single engine aircraft.

 

Mike can be found:

Facebook * Twitter * LinkedIn * Pinterest

Google+ Michael J Daugherty

If you enjoyed this post, you may find these interesting:

Will Obama Sign a Cyber Security Executive Order Despite the Risk?

Read More

06 Mar Extra Extra… Please be Willing to Read all About it!

Newspaper Boys on Capitol Steps 1912

My first draft of my book, The Devil Inside the Beltway, is finished. I need beta readers that are interested in helping me out. I would be forever grateful for your insight and helpful opinion. We are having a Google hangout on March 12th at 4 pm EST to discuss cybersecurity and small business, but if you can’t make that, I would still love to hear from you if you are interested in making sure this book is an exciting page turner from the first word. I am under one tight deadline! The book is going to launch May 30 in NYC at Book Expo America. If you are new to the “story-line”, my book is a TRUE story about a government funded group downloading our file and sending us requests to hire them but not answering our questions regarding how they got it. Turns out this group received funding to go on their cyberspree by the Departments of Justice, Homeland Security, and NSA. That is just the beginning.

The book is meant to read like a novel taking the reader on a hopefully riveting tour of how the Federal Trade Commission, DC Lawyers, and US Congress play their games. With excruciating detail, please help me make sure that this book is, in fact, a riveting read and stinging indictment of the government’s overreaching moves to somehow control theThe Devil Inside the Beltway internet. I am asking for a ten day turnaround, with manuscripts distributed March 11 and responses due back March 24. If you have expertise or are interested in any of the following,  I would love to hear from you.: Public Policy and Government, Cybersecurity, Small Business, Law, Medicine, HIPAA, Fiction Cyber thrillers, Media, Government Overreach., Judicial Activism, IT, Hacking, Rogue law firms, and, last but not least, Data Security legislation and practices.  Please email me at mikedaugherty12@gmail.com.

 ~ ~ ~

 

Michael Daugherty is President & CEO of LabMD, an Atlanta-based clinical and anatomic medical laboratory with a national client base. Mike founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corporation.

Outside of LabMD, enjoys playing tennis, travel, and flying his Cirrus SR22 Turbo single engine aircraft.

 

Mike can be found:

Facebook * Twitter * LinkedIn * Pinterest

Google+ Michael J Daugherty

Interested in learning more about the story? You might enjoy these posts:

The FTC is Suing Me…

Breaking News: U.S. Chamber of Commerce Publishes Article featuring LabMD and Michael J Daugherty    on Cyber Security  

Read More

25 Feb San Francisco Writers Conference: Hangin’ with the Tribe

City Lights Bookstore taken by Michael J Daugherty

As I type this I am on a flight back from San Francisco to Atlanta returning from the 2013 San Francisco Writer’s Conference. This camp for authors sells out every year. 400 authors jog from hour long course to course reviewing everything from story development, blogging, book cover design, dealing with Amazon, self publishing, pitching agents, and just about anything else you can think of. What I enjoyed most was the supportive camaraderie among the panelists and attendees, ranging from first time authors, like myself, to New York Times Bestselling authors.

San Francisco Writers Conference

San Francisco Writers Conference

This conference was not only great for meeting new people and making new connections, it was a wonderful time for catching up with old friends. (Let the name drops begin) I was able to see my good friend Carla King, author of Self-Publishing Boot Camp , moderate an extremely informative discussion on self-publishing (or indie publishing as I was corrected to use multiple times) with a panel of experts on the subject. Included in that panel was  Stephanie Chandler, whose team I used for developmental editing. Stephanie is the founder of the non-fiction publisher Authority Publishing. In addition she has also written multiple books on marketing and sales. It was also a pleasure to see Rusty Shelton of Shelton Interactive, a brilliant digital marketing firm. A big thanks to him for giving me some invaluable advice. And of course I was delighted to see Rachel Thompson, author of two #1 Amazon Bestsellers, social media guru, and all around super person. Finally, Michael Larsen and Laurie McLean ran a great show. Their generosity of spirit can not be overstated.

The overall lesson I took away is that books are all about the reader. Education, entertainment, storyline, character development, and editing editing editing; it is my job to make sure that the reader enjoys the ride. I am working hard surrounding myself with people that know more than I do to bring my story to you in a way that will keep you wanting to read another page rather than go to bed. Sometimes it is a pleasure and other times it is overwhelming.

Just organizing all the contact information for the new people I met will take hours, not to mention their interesting stories! I can’t tell you how many authors have “truth is stranger than fiction” books in the cooker for you. I have not been blogging much because I have been in my dungeon writing the book and running the company during the day. I am lucky that I have such a good team of people at LabMD that can manage the day to day operations while I try to slay the government beast with the power of the pen. 

Guy Kawasaki speaking at SFWC

Guy Kawasaki speaking at SFWC

Regardless of how much blogging, tweeting, networking, interviewing, and advertising I might do, if the book isn’t good, those efforts will fall flat. The book has to be good because nothing sells books better than word of mouth. I loved going to the San Francisco Writer’s Conference. My tank is full again so I can return to the silence of my ideas and computer. When you read the book, tell me what you think and what you still want to know.  Help me bring you a good story. If you haven’t already, click on the Atlanta Business Chronicle story on my homepage at MichaelJDaugherty.com and watch your jaw drop.

 

 ~ ~ ~

 

Michael Daugherty is President & CEO of LabMD, an Atlanta-based clinical and anatomic medical laboratory with a national client base. Mike founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corporation.

Outside of LabMD, enjoys playing tennis, travel, and flying his Cirrus SR22 Turbo single engine aircraft.

Mike can be found:

Facebook * Twitter * LinkedIn * Pinterest

Google+ Michael J Daugherty

Read More

12 Nov Will Obama Sign a Cyber Security Executive Order Despite the Risk?

 

Obama pulled it out. So what is in store for cyber security?

Will Obama now use the executive order to control the internet? There certainly is a love of regulation in the Obama administration. They believe regulation is a solution. They also might not have won had it not been for their great use of technology in executing the ground game.

SOPA. The mere acronym for the Stop Online Piracy Act causes citizens and legislators to shudder. The typically pro-Obama tech crowd turns red with anti-regulation fever when you talk about controlling the internet.  Suddenly big government is terrible when the cheese being moved involves an iPad.

The “executive order” (see circumventing Congress) template that was leaked seems to be a soft ball proposal. It looks like pretty window dressing, but it doesn’t really solve the problem. If Obama signs an executive order, he can only blame himself for the repercussions. While he is a master at dancing around accountability and there are no more elections for him, this involves his “base” in a major way, so I wonder if he will turn the screws.

His cabinet is filled to the brim with big government lovers that think Washington is the center of the universe. Having a politician regulate your internet freedom has become one touchy subject. It looks good on paper as long as somebody else is involved. Once your boat is rocked and the shoe goes on the other foot, the argument seems to tilt right of center. Classic.

 ~ ~ ~

 

Michael Daugherty is President & CEO of LabMD, an Atlanta-based clinical and anatomic medical laboratory with a national client base. Mike founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corporation.

Outside of LabMD, enjoys playing tennis, travel, and flying his Cirrus SR22 Turbo single engine aircraft.

Mike can be found:

Facebook * Twitter * LinkedIn * Pinterest

Google+ Michael J Daugherty

Read More

25 Oct Breaking News: U.S. Chamber of Commerce Publishes Article featuring LabMD and Michael J Daugherty on Cyber Security

 

 

Link: http://www.freeenterprise.com/technology/fbi-says-expect-be-hacked-ftc-says-expect-us-sue-you?nostyle=true.

Reprint:

FBI Says, Expect to Be Hacked; FTC Says, Expect Us to Sue You

Oct 24, 2012

FBI director Robert Mueller is quoted in a CNN Money story today on the data security crisis now facing American businesses – an issue of particular importance to small businesses:

There are only two types of companies: those that have been hacked, and those that will be. Even that is merging into one category: those that have been hacked and will be again.

The U.S. Chamber continues to lead efforts to address the data security crisis, by actively engaging in discussions with Congress regarding federal data security and data breach legislation. The Chamber also recently released an Internet security guide, “Internet Security Essentials for Business 2.0.

Unfortunately, the FTC is throwing American businesses who are victims of hacking under the bus by punishing them for not successfully preventing the hacks – in spite of the stark reality described by the FBI’s Robert Mueller.

Take the FTC’s lawsuit against Wyndham Worldwide Corp., which was the victim of a global hacking scheme, as just one recent example of an FTC run amok. I explained the Wyndham case and the FTC’s approach to “regulating” data security in a recent blog post:

Over the last few years, the FTC has routinely punished businesses who are themselves hacking victims for allegedly failing to have “reasonable” data security measures in place – only there’s no way for a business to truly know beforehand what the FTC will consider “reasonable” measure until after it’s been hacked.

Because the FTC has never formally promulgated any data security standards, a business has no way of knowing whether it’s compliant until after it’s been hacked, had its data stolen, completed a costly FTC investigation, and an enforcement action has been filed against it. Then the FTC strong-arms the business into entering into so-called “settlement” agreements (or “consent orders”) that often give the FTC roving and unchecked authority for the next 20 years to conduct audits and impose penalties on the business – again, for violating non-existent data security standards.

The FTC’s approach to data security is particularly damning for small businesses, who often are compelled to divert their time and precious resources on lawyers and litigation, rather than on growing their businesses – and creating jobs.

Take the tale of LabMD, a Georgia-based cancer detection company, as just one example of how the mere allegation of inadequate data security can subject a business to years of expensive FTC investigations and reputational injury – which can derail a small business’s growth agenda, and cost jobs. The Atlanta Business Chronicle reported on this case and interviewed Michael Daugherty, LabMD’s founder and CEO:

Daugherty contends his company is being unreasonably persecuted by the FTC. He said he’s already spent about $500,000 fighting the investigation.

“We are guilty until proven innocent to these people,” Daugherty said in a Sept. 5 interview with Atlanta Business Chronicle. “They are on a fishing expedition. We feel like they are beating up small business.”

“There’s no deception. There’s not been a breach,” he said.

Of course, the initial FTC investigation (which in this case has already cost LabMD half a million dollars) is just the tip of the iceberg. In reference to its investigation, the FTC told the Atlanta Business Chronicle that “[t]here is no allegation that anybody has done anything wrong.”

If that’s the type of treatment and expenses that small businesses can expect to incur even when the FTC claims “there is no allegation that anybody has done anything wrong,” then there is certainly something wrong with how the FTC is conducting its business.

Visit ChamberLitigation.com to read more about the FTC v. Wyndham Worldwide Corp, et al. lawsuit and the amicus brief  filed in support of the company by the National Chamber Litigation Center, the U.S. Chamber’s public policy law firm.

 

Originally published October 24, 2012. Reprinted by permission, http://www.freeenterprise.com, October 2012. Copyright© 2012, U.S. Chamber of Commerce.

~   ~   ~

Michael Daugherty is President & CEO of LabMD, an Atlanta-based clinical and anatomic medical laboratory with a national client base. Mike founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corporation.

Outside of LabMD, enjoys playing tennis, travel, and flying his Cirrus SR22 Turbo single engine aircraft.

Mike can be found:

Facebook * Twitter * LinkedIn * Pinterest

Google+ Michael J Daugherty

Read More