News & Analysis as of

FTC Loses in LabMD Data Security Case: ALJ Sets High Bar for Consumer Harm

On November 13, 2015, an administrative law judge (“ALJ”) ruled against the Federal Trade Commission (“FTC”) in its high-profile data security case against LabMD. The ALJ ruled that the FTC had failed to show that LabMD’s...more

ALJ Dismisses FTC Data Security Claims Against LabMD Due to Lack of Actual or Likely Substantial Consumer Harm

On November 13, a Federal Trade Commission administrative law judge dismissed the FTC data security complaint against medical laboratory LabMD, potentially vindicating LabMD’s vigorous two-year struggle to deny the FTC’s...more

Administrative Law Judge Dismisses FTC’s Complaint Against LabMD In Data Breach Case, Citing Lack Of Consumer Harm

On November 13, 2015, the Chief Administrative Law Judge (“ALJ”) Of the Federal Trade Commission (“FTC”) dismissed an Administrative Complaint against LabMD, Inc. (“LabMD”) regarding its data security practices. In a 92-page...more

Highly Anticipated Ruling Curbs FTC’s Power to Bring Data-Breach Cases

Last week, after seven years of intense litigation, LabMD won its case against the Federal Trade Commission (“FTC”) resulting in an Administrative Law Judge setting a high bar for the FTC to bring data-breach lawsuits against...more

Blog: FTC Enforcement Powers Limited in LabMD Data Security Case

Federal Trade Commission ("FTC") charges against the cancer-screening laboratory LabMD, stemming from two data breaches involving sensitive personal information of thousands of consumers were dismissed in a decision made...more

ALJ Dismisses FTC Data Breach Action Against LabMD

In the first ruling rebuking the Federal Trade Commission’s cybersecurity enforcement efforts, the FTC’s head administrative law judge dismissed the FTC’s complaint against LabMD, Inc., on November 13, stating that...more

FTC Administrative Law Judge To FTC: "Not So Fast On Data Security Enforcement!"

After repeatedly losing various challenges to the Federal Trade Commission's ("FTC's") authority to investigate and sanction it for alleged data security violations, LabMD Inc. ("LabMD") has finally come out on top, at least...more

FTC Fails to Prove Case Against LabMD

Last Friday, Chief Administrative Law Judge D. Michael Chappell ruled that the FTC had failed to prove its case against LabMD and dismissed the FTC's Complaint. LabMD is one of only two companies (the other being Wyndham) to...more

ALJ Issues Sweeping Decision Dismissing FTC’s Action Against LabMD

On November 13, 2015, the chief administrative law judge (“ALJ”) handling the Federal Trade Commission’s (“FTC” or “Commission”) complaint against LabMD Inc. (“LabMD”) dismissed the case in its entirety. As we previously...more

ALJ Rules Against FTC in LabMD Data Security Action: Sets High Bar for Proving Consumer Harm

Last June we wrote about the FTC’s enforcement action against LabMD, a medical testing laboratory, which was forced to wind down its business because of the costs associated with challenging the FTC since 2013. Using its...more

LabMD vindicated in FTC row

We have been following the fight between LabMD and the FTC for years. It has been a story of high emotions, principles, standoffs, aggression, lawsuits, court decisions, Congressional hearings and accusations, all outlined in...more

FTC Case Against LabMD Dismissed Due to Lack of Harm

This past Friday the 13th was not a lucky day for the Federal Trade Commission (FTC). An Administrative Law Judge (ALJ) dismissed the FTC’s data security enforcement proceeding against LabMD on the grounds that the FTC failed...more

ALJ Dismisses FTC’s Data Security Suit Against LabMD for Failure to Prove ‘Substantial Injury’ to Consumers

In a landmark decision, an administrative law judge dismissed the FTC’s long-running data security lawsuit against Atlanta-based cancer screening laboratory, LabMD Inc., following an alleged data breach. Chief Administrative...more

The LabMD Case: Further Defining the FTC’s Enforcement Powers

The scaffolding of the FTC’s powers in the realm of cybersecurity continues to be built. On Monday, the FTC’s Chief Administrative Law Judge D. Michael Chappell issued an initial decision in the FTC’s closely watched...more

FTC Administrative Law Judge Issues Initial Decision in LabMD Matter

In a stunning victory, an administrative law judge has recommended the dismissal of a long-pending US Federal Trade Commission (FTC) complaint against LabMD, Inc. (LabMD). In a strongly worded opinion in a case that had...more

ALJ Dismisses FTC’s LabMD Complaint for Lack of Actual or Probable Consumer Harm from Cybersecurity Incidents

On Friday, November 13, Federal Trade Commission (“FTC” or the “Commission”) Chief Administrative Law Judge (“ALJ”) D. Michael Chappell issued an Initial Decision in In the Matter of LabMD, Inc. (FTC Docket No. 9357),...more

FTC Theory of Unrealized Consumer Injury Rejected in LabMD Data Security Case

In what could be a major setback for the Federal Trade Commission (FTC) in the data security arena, an Administrative Law Judge (ALJ) has ruled that an unfairness claim brought by the FTC under Section 5 of the FTC Act...more

FTC announces data security guidance for businesses

We (and others) often comment on the Federal Trade Commission’s (FTC) increased enforcement activity of data security issues, particularly with the Wyndham and LabMD cases, and the fact that it is enforcing data security...more

Damned If You Do, Damned If You Don’t: Why The FTC’s Lack of Privacy Regulations May Lead Some Businesses To Abandon Best Data...

I chose to write my privacy law paper on the FTC and its seemingly limitless enforcement authority. Specifically, I argued that the FTC’s lack of clear regulations makes it difficult, if not impossible, for companies to be...more

LabMD Litigation Updates

We have been following this case closely. On April 16, the administrative law judge in the FTC v. LabMD case denied LabMD’s request to exclude the FTC from introducing new evidence into the proceeding regarding how Tiversa...more

LabMD files Motion to Exclude Exhibits as it gears up for May 5th hearing with FTC

The litigation between LabMD and the FTC is not mellowing. Last week, LabMD filed a Motion to Exclude the FTC’s admission of all Tiversa documents during the FTC administrative hearing scheduled for May 5th....more

Why the FTC Can Go After Companies For Insufficient Data Security Allegations

The FTC seems more confident than ever in its authority to go after companies with insufficient data security measures. As of January 2015, it had settled 53 data-security enforcement actions, and FTC Senior Attorney Lesley...more

The Road Ahead: Privacy and Cybersecurity in 2015

2014 has been called the “Year of the Data Breach.”  In the wake of many high-profile data breaches, including the recent Sony breach, 2015 promises a continued focus on privacy and cybersecurity issues. This week, President...more

ALJ Denies LabMD’s Motion for Sanctions Against the FTC

Although the litigation between LabMD and the Federal Trade Commission (FTC) continues in the Eleventh Circuit, an administrative law judge has resolved one battle between the two entities. Chief Administrative Law Judge D....more

A New Sheriff in Town: Federal Trade Commission Enforcement of Medical Information Security

A recent court decision found that the Federal Trade Commission (FTC) has authority to enforce the requirements for security of Protected Health Information, or PHI, as defined under the Health Information Portability and...more

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