News & Analysis as of

Hackers Unfair or Deceptive Trade Practices

Proskauer - Minding Your Business

Circuit Split Deepens as Eleventh Circuit Rejects “Risk of Identity Theft” Theory of Standing in Data Breach Suit

On February 4, 2021, the Eleventh Circuit affirmed the dismissal of a customer’s proposed class action lawsuit against a Florida-based fast-food chain, PDQ, over a data breach. The three-judge panel rejected the argument that...more

Morrison & Foerster LLP - Social Media

Avoiding Claims Under The Computer Fraud And Abuse Act In Connection With Software And Firmware Updates

A recent ruling in Parziale v. HP, Inc., arising out of the implementation by Hewlett-Packard (“HP”) of a remote firmware update on many models of the company’s printers, highlights the potentially broad application of the...more

Faegre Drinker Biddle & Reath LLP

FTC Litigation with D-Link Ends with Comprehensive Settlement

In 2017, the FTC filed a complaint against D-Link Systems, Inc. (D-Link) alleging that the Taiwan-based computer networking equipment manufacturer had taken inadequate security measures which left its wireless routers and...more

Robinson+Cole Data Privacy + Security Insider

Adidas Removes Putative Class Action Suit Arising Out of the Data Breach Announced Earlier this Year

On June 28, 2018, Adidas released a statement announcing that it recently “became aware that an unauthorized party claims to have acquired limited data associated with certain Adidas consumers.”...more

Holland & Knight LLP

Food and Beverage Law Update: June 2018

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Wage and Hour - Decision Upholds Class Action Waivers in Arbitration Clauses, Resolves Circuit Split - The U.S. Supreme Court issued a long-awaited decision in Epic Systems Corp. v. Lewis on May 21, 2018, holding that...more

Ballard Spahr LLP

State and Local Governments Move Swiftly to Sue Equifax.

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The cities of Chicago and San Francisco and the Massachusetts Attorney General have filed the first enforcement actions against Equifax following the announcement of a data breach affecting an estimated 143 million consumers....more

Lowndes

A Primer On FTC Cybersecurity Enforcement

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According to the Breach Level Index, the total number of data records lost or stolen in just the first half of 2016 was 554,454,942, stemming from 974 breach incidents. In the entire year of 2015, there were 707.5 million...more

Kelley Drye & Warren LLP

FTC Files Lawsuit Against Taiwanese Manufacturer for Alleged Lax Security in Wireless Routers and Cameras and Related Marketing...

The Federal Trade Commission has filed a lawsuit in federal court claiming that a networking equipment manufacturer engaged in unfair and deceptive acts, exposing thousands of consumers to the risk of cyberattack from...more

Robinson+Cole Data Privacy + Security Insider

Top Ten Education Developments, Breaches, and Settlements of 2016

This year has been a busy year for education law in the area of data privacy. Educational institutions continue to be a rich target for hackers. Additionally, there were some important developments in the interpretation of...more

Kelley Drye & Warren LLP

Do You Venmo? FTC Spotlight on Peer-to-Peer Payments and Crowdfunding

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3The FTC recently examined peer-to-peer (P2P) payment systems and crowdfunding in the second forum of its FinTech series. P2P payment systems are online services that allow consumers to share money electronically. These...more

Robinson+Cole Data Privacy + Security Insider

16 data breach class action lawsuits filed again 21st Century Oncology consolidated

We previously reported that 21st Century Oncology suffered a data breach in October 2015 involving an intrusion into its systems which compromised around 2 million patients’ records, including their names, Social Security...more

Foley Hoag LLP - Security, Privacy and the...

Cybersecurity News and Notes – August 2016

In Case You Missed It: The Federal Trade Commission issued an opinion in the LabMD case, overturning an ALJ’s November 2015 decision holding that the FTC failed to meet its burden to prove that LabMD’s data security...more

Bilzin Sumberg

Home Depot Challenges Banks’ Standing to Recover Losses Related to Data Breaches

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In the aftermath of major data breaches at deep-pocketed retailers and other businesses, there is typically no shortage of litigants who move quickly to seek compensation from the business at which the breach occurred. But...more

Robinson+Cole Data Privacy + Security Insider

Wendy’s faces class action over data breach

We wrote about Wendy’s investigation into a data breach at its chain restaurants at the beginning of January, and now Wendy’s faces a class action over that same breach. The suit claims that Wendy’s negligently exposed...more

Foley Hoag LLP - Security, Privacy and the...

What is reasonable? The emerging legalities of cybersecurity post-Wyndham

This month’s edition of the Advanced Cyber Security Center’s newletter includes my discussion of lessons to be learned from the Wyndham decision: Historically, security was an issue reserved in a back room for the IT...more

Fenwick & West LLP

Return of the Cyborg—FTC and SEC Oversight of Cybersecurity Ramps Up

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The government appears to be increasing its enforcement efforts regarding cybersecurity risks. A three-judge panel of the U.S Court of Appeals for the Third Circuit recently held the FTC may bring a claim that a company’s...more

Morgan Lewis

SEC and DOJ Hacking Prosecutions Highlight SEC’s Increased Interest in Cybersecurity Risks

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Companies are reminded of the need for strong internal controls. The US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) recently filed civil and criminal actions in the largest hacking and...more

Orrick, Herrington & Sutcliffe LLP

Third Circuit to Wyndham (Part II): "Deceptive" is also "Unfair" in the Cybersecurity Context

In Part I, we discussed the Third Circuit's finding that the "unfair" prong of the FTC Act does not require the agency to provide specific cybersecurity standards with "ascertainable certainty" to which companies must...more

Nossaman LLP

It’s Official: FTC Has the Authority to Police Cybersecurity

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In a resounding win for the Federal Trade Commission (“FTC”), the Third Circuit unanimously affirmed the FTC’s power to regulate cybersecurity under the unfairness prong of the FTC Act (15 U.S.C. §45). FTC v. Wyndham, Case,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Privacy & Cybersecurity Update - August 2015

Third Circuit Affirms FTC’s Authority Over Cybersecurity: In the Wyndham case, the Third Circuit affirmed that the FTC has the authority to regulate cybersecurity under Section 5 of the FTC Act, and that the language of...more

Ballard Spahr LLP

FTC Can Regulate Cybersecurity Practices, Third Circuit Rules

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The Federal Trade Commission (FTC) can regulate cybersecurity policies and procedures as “unfair” acts or practices under Section 5 of the FTC Act, the U.S. Court of Appeals for the Third Circuit has ruled in a very important...more

Ballard Spahr LLP

Federal appeals court confirms FTC authority to regulate cybersecurity policies and procedures

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Banks and other companies subject to the CFPB’s jurisdiction face the possibility that the CFPB could begin using its authority under Sections 1031 and 1036 of the Dodd-Frank Act (which proscribe unfair, deceptive or abusive...more

Morris James LLP

Data Privacy: Wyndham Hotel's Wake Up Call Should Be Your Own

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On August 24, 2015, the United States Court of Appeals for the Third Circuit issued a precedential opinion in the matter of Federal Trade Commission v. Wyndham Worldwide Corporation, et al., No. 14-3514 (3d. Cir., Aug. 24,...more

McNees Wallace & Nurick LLC

3rd Circuit Says: FTC Can Take Action Against Companies That Suffer Data Security Breaches

Companies can be fined by the federal government for failing to properly safeguard consumer data, according to a decision this week by Pennsylvania's federal appellate court....more

Foley Hoag LLP - Security, Privacy and the...

Third Circuit Not Hospitable to Wyndham, Upholds FTC’s Broad Powers to Regulate Cybersecurity

Over one year ago, our colleague Chris Hart argued that the District of New Jersey court’s decision in FTC v. Wyndham Worldwide Corp. et. al., No. 13-1887-ES, “point[ed] to the possibility that the FTC has potentially broad...more

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