On August 24, 2015, in a ruling that was much-anticipated because of its potential implications for the regulatory liability exposures of companies that have been hit with data breaches, the Third Circuit affirmed the authority of the Federal Trade Commission to pursue an enforcement action against Wyndham Worldwide Corp. and related entities alleging that the company and its affiliates had failed to make reasonable efforts to protect consumers’ private information. This ruling confirms that, in addition to the disruption and reputational harm that may follow in the wake of a successful cybersecurity, companies may also face a regulatory action from the FTC as well, as discussed further below. The Third Circuit’s opinion can be found here. The August 24, 2015 statement of the FTC’s Chair about the Third Circuit’s opinion can be found here.
Continue Reading Third Circuit: FTC May Pursue Data Breach Enforcement Action against Wyndham Worldwide
Data Privacy
Guest Post: Courts Uphold California Privacy Claims Despite Vague Allegations: Opening The Litigation Floodgates?
Among the many concerns that arise whenever unauthorized appropriation or use of consumer data occurs is the possible violation of the consumers’ privacy that the access may represent. In numerous cases, aggrieved parties have tried to assert claims for these alleged privacy violations, but by and large these attempts have not been successful. However, as…
Guest Post: Cyber Security and Cyber Governance: Federal Regulation and Oversight – Today and Tomorrow
It seems that every day there is yet another story in the business pages about a significant data breach at a major company. Cybersecurity is an increasingly important topic for companies and their shareholders, and the problems with cybersecurity are an increasing concern in Washington as well. In the following guest post Paul A. Ferrillo …
District Court Upholds FTC’s Authority to Bring Data Breach Enforcement Action
It is a dangerous world out there. Among many other things, companies and other organizations are increasingly vulnerable to data security attacks from would-be hackers. Indeed, an April 8, 2014 New York Times article entitled “Hackers Lurking in Vents and Soda Machines” (here) notes that “companies scrambling to seal up their systems from …
Data Privacy and Security: The “Stealth Issue” of 2010?
Data security and privacy could be the "stealth issue of 2010," according to a recent report. Despite the intense focus on financial and related issues during the current economic crisis, a variety of legislative and regulatory initiatives suggest that data privacy and security issues necessarily will become a top corporate priority. These developments have important…