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Data Security Section 5 Enforcement Actions

Perkins Coie

FTC Signals Tough Line in First AI Discrimination Case Under Section 5

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The Federal Trade Commission (FTC) announced its first enforcement action alleging that discriminatory use of artificial intelligence (AI) was an unfair practice under Section 5 of the FTC Act on December 19, 2023. According...more

WilmerHale

FTC Announces Enforcement Action Against Global Tel*Link Corporation for Unfair Data Security Practices and Inadequate Data Breach...

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On November 16, the Federal Trade Commission (FTC) announced an enforcement action against Global Tel*Link Corporation and two of its subsidiaries (collectively, “GTL”), which provide communications and payment services to...more

WilmerHale

FTC Announces Enforcement Action Against 1Health.io for Inadequate Protection of Genetic Data and Unfair Privacy Policy Changes

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On June 16, the Federal Trade Commission (FTC) announced an enforcement action against 1Health.io Inc. (“1Health,” also known as Vitagene, Inc.), a genetic testing company that analyzes consumer-provided DNA samples and uses...more

Wyrick Robbins Yates & Ponton LLP

Buyers Beware: the FTC’s Case Against CafePress Highlights Privacy and Data Security Risks in Corporate Transactions

Last week the Federal Trade Commission announced a privacy and data security enforcement action against the online retail platform CafePress. The allegations in the FTC’s complaint read like a list of worst practices,...more

Wilson Sonsini Goodrich & Rosati

Spotlight on Antitrust: FTC Open Meeting Reflects Changing Tide

On July 1, the Federal Trade Commission (FTC) held its first open meeting in decades. At the meeting, the FTC adopted the four items on its agenda, all along partisan lines. The Commission rescinded the 2015 Statement of...more

Sheppard Mullin Richter & Hampton LLP

States Continue to Step in to Safeguard Genetic Information

Utah’s governor recently signed into law SB 227, creating the Genetic Information Privacy Act (GIPA). The law, which is anticipated to go into effect in May, is aimed at protecting genetic data collected from...more

WilmerHale

New FTC Data Security Order Shows Trend in Increased Accountability for Data Security Post-Order

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On June 12, 2019 Lightyear Dealer Technologies LLC, a company that provides data storage for many of the nation’s largest auto dealers, stipulated to an Order with the Federal Trade Commission (FTC) resulting from a 2016 data...more

Snell & Wilmer

The Anatomy of an FTC Data Security Lawsuit

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The Federal Trade Commission (“FTC”) has described itself as “Your cop on the privacy beat” and a top federal regulator of consumer-facing data security practices. An example of how the FTC asserts itself when it comes to...more

Skadden, Arps, Slate, Meagher & Flom LLP

FTC Enforcement Trends in Consumer Protection

A comprehensive review of recent Federal Trade Commission (FTC or Commission) consumer protection actions shows that the FTC continues to be one of Washington’s most aggressive regulators. While the number of enforcement...more

WilmerHale

Eleventh Circuit Concludes FTC Data Security Order Unenforceable Because Standards Not Specific Enough

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On June 6, the U.S. Court of Appeals for the Eleventh Circuit vacated a cease-and-desist order by the Federal Trade Commission (FTC) issued against LabMD, Inc. (LabMD) arising from an FTC enforcement action alleging that...more

Dechert LLP

Appellate Court Directs FTC to Be More Specific in its Data-Security Orders

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In a closely watched data-security case, the U.S. Court of Appeals for the Eleventh Circuit vacated as unenforceable a cease and desist order issued by the U.S. Federal Trade Commission (FTC) against LabMD, Inc. According to...more

Robinson+Cole Data Privacy + Security Insider

LabMD Wins Against FTC—11th Circuit Vacates Enforcement Order Against It

We have been watching the LabMD/FTC case for a long time. We have written about it, read the book about it that was hand delivered to our office by the CEO of LabMD, debated it in privacy law class and marveled at the energy...more

Dorsey & Whitney LLP

FTC’s Data Security Authority Curbed by 11th Circuit

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The Federal Trade Commission (“FTC”) has long been considered the agency best suited to regulate data security. The Eleventh Circuit dealt a serious setback to that authority yesterday in LabMD v. FTC, No. 16-16270, striking...more

McGuireWoods LLP

FTC’s Loss in the Eleventh Circuit Will Not Impede Data Security Enforcement

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In the matter of LabMD Inc. v. Federal Trade Commission, case number 16-16270, the U.S. Court of Appeals for the Eleventh Circuit ruled against the FTC, finding that the order against LabMD for lax data security measures was...more

Patterson Belknap Webb & Tyler LLP

FTC Chronicle: “Lessons Learned” from the Agency’s Data Breach Investigations

The Federal Trade Commission (FTC) – often criticized for not providing clear guidance as to what the agency considers reasonable data security – announced on Friday that it would publish a weekly blog discussing “lessons...more

Davis Wright Tremaine LLP

IoT Vendors Beware: FTC’s Latest Enforcement Action Signals Further Scrutiny of the Industry

The FTC’s first data security enforcement action in 2017 sends a clear signal to vendors serving the Internet of Things (“IoT”) marketplace: make sure your data security promises match your data security practices. IoT is in...more

Moore & Van Allen PLLC

The FTC Faces an Embarrassing Set-Back in its Data Security Enforcement Authority as the LabMD Saga Continues

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On November 10th, the Eleventh Circuit Court of Appeals handed an embarrassing defeat to the Federal Trade Commission and an early Christmas present to LabMD, Inc. in the ongoing David and Goliath battle between the...more

McGuireWoods LLP

LabMD Successfully Delays FTC’s Data Security Enforcement During Appeal

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In another twist in the LabMD case, LabMD has succeeded in obtaining a delay on the FTC’s enforcement action during its appeal. Of course, the substantive issues remain to be determined. In 2013, the Federal Trade...more

Patterson Belknap Webb & Tyler LLP

LabMD Scores Early Win in FTC Appeal

The fight between the Federal Trade Commission and LabMD, the defunct medical testing lab, entered a new chapter late yesterday. In a 13-page ruling, the U.S. Court of Appeals for the Eleventh Circuit said that LabMD’s...more

McGuireWoods LLP

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

McGuireWoods LLP on

As anticipated, things are getting even more exciting with the case previously covered in Password Protected. Specifically, LabMD is appealing the landmark data security case between it and the Federal Trade Commission...more

BakerHostetler

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

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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

McGuireWoods LLP

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

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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

Ballard Spahr LLP

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

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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

Snell & Wilmer

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

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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

Alston & Bird

FTC Overrules LabMD Dismissal, Finds Unfair Data Security Practices

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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

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