Michael Daugherty, Senior Writer for Cyber Defense Magazine, Author of “The Devil Inside The Beltway: The Shocking Expose of The U.s Government’s Surveillance and Overreach Into Cyber Security, Medicine and Small Business” – October 24, 2016
In part II of our interview with LabMD CEO Michael Daugherty, we discuss the Federal Trade Commission’s much anticipated decision in this long-running data security enforcement action. Daugherty also talks about LabMD’s “lessons learned” after more than six years of litigation with the Commission.
FTC & Data Privacy: An Interview with LabMD CEO Michael Daugherty
The Federal Trade Commission is expected to issue a ruling later this month in the LabMD case, a closely watched data security case that focuses on the scope and reach of Section 5 of the FTC Act. In November 2015, an Administrative Law Judge concluded — after a full trial on the merits — that the Commission failed to prove its case against LabMD. The matter has been appealed to the full Commission. Patterson Belknap partner Craig Newman sat down with LabMD CEO Michael Daugherty to discuss the appeal and its implications.
Mike Daugherty, the president and CEO of LabMD who is fighting a legal battle with theFederal Trade Commission over two security incidents in 2008 and 2012, contends the agency is overstepping its regulatory authority. And he warns bankers and merchants to beware because new FTC probes into PCI compliance and EMV deployment could be on the way.
See Also: 2016 State of Threat Intelligence Study
“You have a whole bunch of people in Congress who want the administrative state and the regulators to be seen as saviors,” Daugherty says in this video interview with Information Security Media Group. “The problem is, we’re at a tipping point, in finance, in technology, in medicine, because we’re being regulated by lawyers, not people who are really educated in the areas that they’re regulating.”
In this interview at ISMG’s recent Washington Fraud and Breach Prevention Summit, Daugherty also discusses:
Atlanta-based LabMD, which has ceased operations, was a clinical and anatomic medical laboratory that specialized in analysis and diagnosis of blood, urine, and tissue specimens for cancers, micro-organisms and tumor markers. Daugherty founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corp. He is author of a book about the FTC’s investigation of his firm: “The Devil Inside the Beltway: The Shocking Expose of the U.S. Government’s Surveillance and Overreach into Cybersecurity, Medicine and Small Business.”
*Tracy Kitten is Executive Editor for http://BankInfoSecurity.com
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.)
I interview Mike Daugherty – author of The Devil Inside the Beltway live from the Security Advisor Alliance first-ever Summit in Dallas, TX. Mike was kind enough to sit down with me (twice, thanks to a tech failure) and tell his absolutely surreal story of what happened to him, his company at the hands of what can only be described as an insane situation.
If you own a business, or manage a business, or work in enterprise — you need to hear Mike’s story. If it wasn’t documented and video recorded, you’d never believe it’s true.
Truth be told, I’ve been a supporter of the FTC as an advocate for the victims of breaches – the person who’s information is stolen. After hearing Mike’s story… I have had my mind completely changed.