05 Aug FTC Must Disclose Consumer Data Security Standards
Quote from Information Week
A company accused by the FTC of failing to provide adequate data security has the right to know the required security standards, administrative judge rules.
A medical lab accused by the Federal Trade Commission (FTC) of inadequately securing data has the right to know what standards the agency claims it violated, according to an FTC administrative judge’s ruling.
The May 1 decision represents a belated victory for LabMD, a small Atlanta medical testing lab that first ran afoul of the commission in 2008 when medical records reportedly were found on an outside peer-to-peer network. In August 2013, the FTC filed an administrative complaint alleging the lab failed to reasonably secure patient data in 2008 and in a subsequent 2012 breach.
LabMD since has gone out of business, but it is defending itself against the FTC complaint in administrative court and in March filed a civil lawsuit in U.S. District Court challenging the commission’s authority to enforce security standards for data security.
