Section 5

News & Analysis as of

FTC Scrutinizes Dual Distributor Communications

A dual distribution relationship does not protect against Section 5 liability for an invitation to collude. For the first time, the Federal Trade Commission (FTC) has charged a company with violating Section 5 of the FTC...more

FTC Finds Laboratory Security Practices Caused Consumer Harm

On July 28, 2016, a panel (the “FTC Panel”) of three acting Federal Trade Commission (“FTC”) commissioners issued an opinion that found that LabMD, Inc. (“LabMD”) failed to implement reasonable security measures to protect...more

Unanimous FTC Finds LabMD’s Data Security Practices Violated Section 5 of the FTC Act

On July 29, 2016, a unanimous Federal Trade Commission (“FTC” or “Commission”) issued its Opinion and Final Order reversing the decision of an administrative law judge (“ALJ”) and holding that LabMD engaged in “unfair”...more

Got Data? Actual Harm Not Required for FTC Enforcement Action for Lax Security Measures

While much of Washington, D.C. is enjoying the slow and hazy days of summer, the Federal Trade Commission (FTC) is staying busy solidifying its presence as the go-to authority for data security. Most recently, on July 29,...more

Lessons for Businesses from FTC’s Opinion on LabMD’s Data Security Practices

The Federal Trade Commission (FTC) has issued an Opinion and Final Order finding that the data security practices of LabMD, Inc. were unreasonable, and therefore constituted an unfair act or practice in violation of Section 5...more

The FTC Rules Against LabMD in On-Going Data Security Case

The lengthy saga between the Federal Trade Commission (FTC) and LabMD, Inc. reached another turning point on July 28, 2016. The FTC issued its unanimous Opinion in which it found that LabMD’s data security practices were...more

The FTC Has Not Yet Begun To Fine - InMobi’s Million Dollar Settlement and Online Analytics in an Age of COPPA

?In June 2016, India-based online advertising behemoth InMobi Ltd. agreed to pay a $ 950,000 fine to resolve Federal Trade Commission (FTC) allegations that its data collection practices violated the Children’s Online Privacy...more

FTC Expands Its Role In Cybersecurity Enforcement By Reviving LabMD Action

On Friday, July 29, 2016, the Federal Trade Commission (“FTC” or the “Commission”) overturned the decision of one of its administrative law judges (“ALJ”) from November 2015 in a suit against LabMD, Inc., now finding LabMD...more

FTC Overrules LabMD Dismissal, Finds Unfair Data Security Practices

The FTC issued an Opinion and Final Order reversing the previously dismissed charges against LabMD on July 29. FTC Administrative Law Judge (ALJ) D. Michael Chappell had dismissed the case against LabMD on November 13, 2015...more

Home Depot Seeks Interlocutory Review of District Court’s Denial of Motion to Dismiss

In May of this year, the United States District Court for the Northern District of Georgia ruled largely in favor of the class action plaintiffs and against The Home Depot, Inc. by denying a motion to dismiss on at the...more

FTC Reverses ALJ’s Decision In LabMD Case

Back in November 2015, Chief Administrative Law Judge (ALJ) D. Michael Chappell ruled that the Federal Trade Commission (FTC) failed to show that LabMD, Inc.’s (LabMD) data security practices caused harm to consumers stemming...more

Heads of the FTC Push Back on Chief Administrative Law Judge and Find Consumer Harm in LabMD Data Leak

On July 29, 2016, the three Federal Trade Commission (“FTC”) commissioners vacated their chief administrative law judge’s bold decision to dismiss the agency’s action against a medical testing lab, LabMD, In the Matter of...more

Alert: FTC Commissioners Find LabMD's Failure to Implement Data Security Practices "Unfair"

On July 29, 2016, the Federal Trade Commission (FTC or Commission) announced its long-awaited decision in its LabMD enforcement action. The Commissioners reversed the decision of an Administrative Law Judge (ALJ) and held...more

No Harm? No Matter. FTC Broadens Data Security Liability

No harm, no foul? Not according to the FTC. On July 29, 2016, the Commission held that a showing of tangible injury was not necessary in order for company acts and practices to be considered unfair. The case, In the...more

FTC Holds That Disclosure of Sensitive Medical Information Due to Lax Security Violates the FTC Act

Last week, three commissioners from the Federal Trade Commission (FTC) held in In the Matter of LabMD, Inc. that a company’s failure to implement reasonable security measures to protect sensitive consumer information on its...more

FTC: LabMD Tests Positive for “Unfair” Security Practices

LabMD’s lack of data security measures resulted in the FTC Commission overturning an Administrative Law Judge (“ALJ”) decision that previously dismissed charges against the company in November. LabMD performed laboratory...more

Commission Holds FTC Unfairness Claim Does Not Require “Probable” or Tangible Injury in LabMD Data Security Case

The Federal Trade Commission unanimously (3-0) ruled on July 29, 2016 that LabMD’s data security practices were “unfair” under Section 5 of the FTC Act, reversing a decision of its Administrative Law Judge (ALJ). As we...more

LabMD Opinion Reverses ALJ Decision; Articulates Standard for “Substantial Injury” Under the Unfairness Prong of the FTC Act for...

In a widely anticipated move, the Federal Trade Commission (FTC) has overruled a decision by its own Administrative Law Judge (ALJ) that had dismissed a case against a medical testing laboratory accused of unreasonable data...more

Companies That Collect Sensitive Consumer Data Should Note the FTC’s LabMD Ruling

The FTC has been a leader in enforcing cybersecurity issues in recent years, and just last week it issued a highly-anticipated decision on its authority to regulate cybersecurity as a form of unfair consumer practice under...more

FTC Establishes a Low Bar for Consumer Harm in Data Security Cases: Finds LabMD Engaged in Unfair Practices

On July 29th, the Federal Trade Commission (the Commission) issued an important opinion in its long-running data security case against LabMD, finding that the company engaged in unfair practices in violation of Section 5 of...more

FTC Slaps Down ALJ’s Data Security Ruling in LabMD, Sets Broad Mandate for Protection of “Sensitive” Consumer Data

In a sweeping statement of its data security expectations for organizations that maintain consumer information, the Federal Trade Commission on Friday found that LabMD, the defunct medical testing lab, failed to employ...more

FTC Plants A Flag With LabMD Ruling: What This Means for Enforcement

On Friday, the heads of the Federal Trade Commission overruled the decision of the Administrative Law Judge (“ALJ”) in In the Matter of LabMd., Inc. The FTC concluded that the ALJ had erred in dismissing the Commission’s case...more

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

FTC Data Security Standards: Final Order in the ASUSTeK Case; No Mercy for LabMD

The Federal Trade Commission, continuing its quest to be the enforcer of consumer privacy rights, has come down hard this month on ASUSTeK and LabMD for their failure to have adequate data security standards. Because the FTC...more

Breaking News: FTC Vacates ALJ’s Ruling and Finds LabMD Liable for Unfair Data Security Practices

In a ruling issued this morning, the Federal Trade Commission found that LabMD, the defunct Atlanta-based cancer detection lab, failed to protect patient information and is liable for unfair data security practices. The...more

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