Recent Data Privacy Suits Show FTC's Resolve to Enforce Data Security Laws

The Federal Trade Commission recently stated its stepped-up enforcement of data security laws is a part of its "ongoing efforts to make sure that companies live up to the promises they make about privacy and data security," according to a Law360 report.

Late last month, the FTC filed suit against medical testing laboratory LabMD, alleging the company failed to reasonably protect consumer data. According to the complaint, the information of 10,000 patients was compromised after a spreadsheet containing patient information was posted on a peer-to-peer file-sharing site, and the personal information of 500 patients was found in the possession of identity thieves.

Outside of the healthcare industry, the FTC is also going after TrendNet, a webcam company, and Wyndham Worldwide, a hotel chain, claiming both failed to implement reasonable safeguards to protect consumer's personal information. LabMD, along with Wyndham, are contesting the FTC's charges.

These cases show the FTC is taking a more aggressive stand on data security, says Robins Kaplan Miller & Ciresi partner Richard Martinez.

"They signal that the FTC under its new chairman is still very actively focused on the area of data security and data privacy in all its forms, from online to mobile, and the commission is obviously very much interested in regulating this space and asserting its authority under Section 5," Mr. Martinez told Law360.

More Articles on Data Security:

Medical University of South Carolina Data Breach Affects 7k
Advocate Data Breach Update: Class Action Lawsuit Filed
Healthcare and the Cloud: Solving the Security Dilemma With Encryption

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