In the Wyndham Case, the Third Circuit Gives the FTC a Green Light to Regulate Cybersecurity Practices

The Wyndham decision makes clear that there is a “‘top cop’ regulatory agency looking over privacy and security practices of private business: the Federal Trade Commission,” Cynthia Larose, a member of Mintz Levin, told Cybersecurity Law Report.  On August 24, 2015, the Third Circuit denied Wyndham’s motion to dismiss an FTC complaint against it and held that the FTC can pursue Wyndham for allegedly weak data security practices that led to three breaches.  “The FTC is here to stay in the data privacy and security space,” Michael Gottlieb, a partner at Boies, Schiller & Flexner, said.  We examine the decision and its implications.  See also “The FTC Asserts Its Jurisdiction and Provides Ten Steps to Enhance Cybersecurity,” Cybersecurity Law Report, Vol. 1, No. 8 (Jul. 15, 2015).

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