A federal appeals court has allowed the Federal Trade Commission to move ahead with a lawsuit against Wyndham Worldwide Corp. that claims the hotelier did not provide adequate protection against the theft of online credit card data.
The Third U.S. Circuit Court of Appeals in Philadelphia said the FTC could proceed with the suit on consumer protection grounds, effectively giving the commission clearer powers to punish offenders in similar data security incidents.
One data security lawyer referred to the decision as a “watershed event.”
Congress never has passed comprehensive legislation on data security, and it doesn’t look likely to do so any time soon. The FTC stepped into the muddy regulatory water by filing more than 50 data security cases based on what it says are unfair and deceptive business practices, The Wall Street Journal reports.
Of course, it was nearly inevitable that this would lead to a court challenge, and the appeals court ruling brings some clarity over the FTC’s powers. The three-judge panel was unanimous in its ruling, which certainly won’t help Wyndham’s case if it decides to push the case toward the Supreme Court.
Wyndham’s computers had three major breaches between 2008 and 2010, allowing hackers to allegedly steal more than 600,000 debit and credit card numbers. It claimed the FTC action was overreaching.
The judges cited the multiple breaches as an indication that Wyndham had failed to act appropriately after the first attack, giving the FTC authority to sue in an attempt to protect consumer data.
- Big privacy and data security concerns as India forces coronavirus tracing app on millions
- Data security crucial as newer payment methods rise
- Appeals court raises standard for laptop searches at US border
- Appeal Court justice as judge of High Court: A commentary on the Supreme Court decision in Udeogu v FRN
- Facebook Censorship Lawsuit Heads to Appeals Court
- Court: Minnesota agency can change name of Lake Calhoun
- Special Report: For cops who kill, special Supreme Court protection
- New Jersey 'Bridgegate' scandal convictions tossed by U.S. Supreme Court
- Cardinal George Pell freed from prison after High Court overturns sex abuse conviction
- Court: Ex-LSU student accused in Gruver hazing death doesn't have to reveal phone code for now
- U.S. federal court to consider payout suit brought by RBS whistleblower
- U.S. federal court tells SEC, Justice Dept to review RBS whistleblower case
- Supreme Court appears divided in Catholic schools case
- Supreme Court Reverses Convictions of Bridgegate Schemers
- U.S. Supreme Court wary of presidential 'harassment' in Trump finances fight
- Coronavirus Scams Cost Americans $23 Million, FTC Says
- Will Kavanaugh Give Trump the Power to Fire Anyone He Pleases?
- Supreme Court also sits as a high court!
- 2020 Daily Trail Markers: 20-state coalition files defense of Obamacare with Supreme Court
- Meghan Markle loses first High Court challenge over privacy claim against newspaper
Appeals court gives FTC more authority over data security have 456 words, post on www.healthcaredive.com at August 27, 2015. This is cached page on Game Breaking News. If you want remove this page, please contact us.