There’s a big problem for the FTC lurking in 11th Circuit’s LabMD data-security ruling [Reuters]
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Source: Reuters
There’s a big problem for the FTC lurking in 11th Circuit’s LabMD data-security ruling | Reuters 6 Min Read (Reuters) - The obvious takeaway from the 11th U.S. Circuit Court of Appeals’ milestone ruling Wednesday in LabMD v. Federal Trade Commission (2018 WL 2714747) is that the FTC is probably going to have to tailor the conditions it imposes on companies it has accused of failing to safeguard consumer data. The 11th Circuit said the FTC’s cease and desist order against LabMD, a cancer-screening company that went out of business in the course of litigating against the commission, was unenforceable because it required the company to meet a vague standard of reasonableness. If the ruling stands, the FTC will have to set specific data security benchmarks for corporate defendants. The less-obvious takeaway is that the 11th Circuit did not strip the FTC of authority to police data security. LabMD’s lawyers at Ropes & Gray, as well as business-friendly amici including the U.S. Chamber of C
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