Michael was recently interviewed by Stephen K. Bannon. The following article accompanies the interview. The original can be found here.
Author Michael Daugherty believes that technology as a “double-edged sword” will be responsible for major shifts in the workplace, as companies seek a level of efficiency that will cause jobs to “evaporate.”
The STEPTOE CYBERLAW PODCAST talked about in last week’s post is now live and a great listen!
With Wyndham’s surrender to the FTC after a brutal court of appeals opinion, the last outpost of resistance to the FTC’s cybersecurity agenda is Mike Daugherty, CEO of LabMD. Daugherty refused to take the easy road and enter into a consent decree with the FTC to settle its claim that the company’s security was insufficient because of a file-sharing program installed on the corporate network. That decision has cost Daugherty his company. LabMD has ceased operations. And it took him on an extraordinary odyssey through Washington that he has described in his book, The Devil Inside the Beltway, and in several speeches. I caught up with Mike at the Black Hat Executive Summit where we were both speakers, and he kindly agreed to a short interview describing some of that odyssey.
Reblogged from Lawfare
Michael Vatis tells us that Michael Daugherty of LabMD is officially the only challenge facing the FTC as it sets (or at least enforces) cybersecurity requirements for American business. That’s because Wyndham Hotels has officially given up the ghost, agreeing to twenty years of privacy and security monitoring by the FTC…..
….The podcast will be on hiatus over the holidays, but we won’t completely abandon you. While I was at a BlackHat Executive conference last week, I had a chance to do a short interview of Mike Daugherty about his LabMD experience, and we’ll be releasing that as a special bonus edition of the podcast over the Christmas break. (We’re holding it because I’ve offered the FTC a chance for equal time. But we’ll be releasing the interview next week in any event, with or without the FTC’s input.)
For more information, see the website
Various government agencies do not always have to follow checks and balances, and can wield unregulated power. Small businesses often do not have the means or influence to defend themselves when under scrutiny from these agencies. Five years ago, the US Government teamed with a private enterprise to attack and take a file without authorization from an American small business, and they used that information to expand a government agency. Michael Daugherty, a small business owner who created LabMD, a cancer detection center in Atlanta, became a victim of a private cyber security company. That company, in association with a prestigious American university, conducted an invasion of business files and then used their findings to motivate the US Government to ride the wave of new cyber security protections and legislation. Mr. Daugherty will create awareness about this abuse of power, and his book The Devil Inside the Beltway will be available at the Wisconsin Forum event for purchase
Host Brian Wesolowski sits down with Michael Daugherty to discuss in-depth his recent court win against the Federal Trade Commission, how the long-term experience turned into his recent book “The Devil Inside The Beltway,” and more. The issue at hand raises questions about the agency’s ability to protect consumers against risky business practices that have not yet led to actual harm.
I felt trapped. We couldn’t go to court because they wouldn’t hear us. Congress created this beast. The FTC was going to just keep pounding on us.
Episode seven of an eight part saga based on the book by Michael J. Daugherty, The Devil Inside the Beltway – The Shocking Exposé of the US Government’s Surveillance and Overreach into Cybersecurity, Medicine and Small Business.
To view the rest of the series, click here
Reblogged from here
The Federal Trade Commission routinely holds companies responsible for data breaches that expose consumers’ private data to intruders. But the commission’s recent loss in the case of LabMD raises questions about its ability to prevail in other consumer cybersecurity cases.
The agency had sought to hold the medical testing lab responsible for a data breach that exposed the records of 9,000 patients. But LabMD fought back, refusing to sign a consent order and arguing that there was no proof any consumer had suffered any actual harm as a result of the breach.
Late last week, FTC Chief Administrative Law Judge Michael Chappell agreed and dismissed the commission’s complaint.
“FTC spent millions of taxpayer dollars to pursue its baseless case against LabMD, an innovative and successful provider of cancer diagnostics,” said Daniel Epstein of Cause of Action Institute, which defended LabMD. “Although FTC’s ostensible justification for this boondoggle was ‘data security,’ it produced no evidence that even a single patient was harmed by LabMD’s alleged inadequacies.”
This is a perfect example how people don’t understand the administrative law process. The FTC STAFF is appealing the decision to the FTC COMMISSIONERS. Then the commissioners get the option of siding with their staff, which they usually do – over 95% of the time, and THEN LabMD would appeal to Federal court….FINALLY. In Federal Court the smug, save the world FTC gets overturned 50% of the time. This system is so biased and corrupt that reporters don’t believe what they are serving…so the torture rolls on as Congress does nothing and the crushed can’t speak. Nauseating.
The following is written by Teri Robinson and reblogged from SC Magazine
A little more than a week after a Federal Trade Commission (FTC) administrative law judge tossed the FTC’s data breach case against LabMD, the agency has filed an appeal of the ruling.
The decision to appeal drew immediate sharp response from Dan Epstein, executive director of Cause of Action, the non-profit that has defended LabMD in the case.
Michael was interviewed, drop by the post and listen to the interview here
After seven contentious years, LabMD won a major victory in its legal battle with the Federal Trade Commission. But CEO Michael Daugherty says his recent triumph could be short-lived, and he’s hoping – long term – that he case shines a new light on FTC’s data security enforcement practices.