Cyber Security Practitioner
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Volume: 4 Issue: 7
(July 2018)

labmd decision may restrain ftc data security actions future after eight years scrutiny under microscope us federal trade commission (‘ftc

US Washington

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LabMD decision may restrain FTC data security actions in the future

After eight years of scrutiny under the microscope of the US Federal Trade Commission (‘FTC’) and lengthy contention and expensive federal litigation, the US Court of Appeals for the Eleventh Circuit delivered an opinion in favour of LabMD, a small medical testing lab (now out of business), that the FTC’s cease and desist order was unenforceable because it did not specifically list the data security protections that LabMD needed to implement to comply with the FTC’s order. The Eleventh Circuit decision is expected to have a long standing impact on the state of cyber security regulation in the US, and specifically the FTC’s ‘regulation by consent decree’ approach that it has used for years, as Ryan P. Blaney, Esq. and Sarah Hopkins, of Cozen O’Connor, explain.

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