FTC Has Authority to Police Security , Court Says
Business Insurance (Reuters) August 2015
A U.S. appeals court on Monday said the Federal Trade Commission has the authority to regulate cyber security and may pursue a lawsuit accusing hotel operator Wyndham Worldwide Corp. of failing to safeguard consumers’ personal information.
The 3-0 decision by a panel of the 3rd U.S. Circuit Court of Appeals in Philadelphia upheld an April 2014 ruling that allowed the FTC to pursue its case.
The case arose from three data breaches in 2008 and 2009, when hackers stole the personal and financial information of hundreds of thousands of consumers, resulting in more than $10.6 million in fraudulent charges, the appeals court said.
A Wyndham spokesman said the company was reviewing the decision. The FTC did not immediately respond to requests for comment.
