BREAKING | Fed court confirms FTC has the authority to govern cybersecurity

Bump

===============
Court: FTC can bring down the hammer on companies with sloppy cybersecurity
Hotel chain Wyndham had challenged the FTC's authority to mandate cybersecurity standards
by: Grant Gross - IDG News Service - Aug 24, 2015 11:54 AM
---------------

The U.S. Federal Trade Commission has the authority to take action against companies that fail to protect customer data, an appeals court ruled Monday.

The U.S. Court of Appeals for the Third Circuit upheld the FTC's 2012 lawsuit against hotel and time-share operator Wyndham Worldwide. The FTC filed a complaint against Wyndham for three data breaches in 2008 and 2009 that led to more than US $10.6 million in fraudulent charges.
...
Wyndham was one of two companies that had challenged the FTC's authority to enforce cybersecurity standards under the unfair and deceptive practices provisions of the FTC Act. Critics have argued the agency has no clearly defined cybersecurity standards for companies to follow.

Wyndham said it was disappointed by the ruling,...

"We continue to contend the FTC lacks the authority to pursue this type of case against American businesses, and has failed to publish any regulations that would give such businesses fair notice of any proposed standards for data security," the company said in a statement. "With the dramatic increase in the number and severity of cyberattacks on both public and private institutions, we believe consumers will be best served by the government and businesses working together collaboratively rather than as adversaries."

The FTC said it welcomed the court ruling.

The court decision "reaffirms the FTC's authority to hold companies accountable for failing to safeguard consumer data," agency Chairwoman Edith Ramirez said in a statement. "It is not only appropriate, but critical, that the FTC has the ability to take action on behalf of consumers when companies fail to take reasonable steps to secure sensitive consumer information."
...
Wyndham argued on appeal that its conduct did not meet the congressional definition in the FTC Act of "unfair." The company argued that its actions were not unfair because it was the victim of criminals.

Appeals court Judge Thomas Ambro rejected that argument. The company "offers no reasoning or authority for this principle, and we can think of none ourselves," he wrote in Monday's decision.
...
---------------
[link to www.pcworld.com] . Less than 50% copied.
===============

aHEMagain

When do you suppose they are going to extend their authority over individuals?

aHEMagain

Bump