FTC Unanimously Overturns Dismissal of LabMD Security Practices Case

FTC Unanimously Overturns Dismissal of LabMD Security Practices Case

In a case that could have far-reaching implications for how companies are held liable for data security lapses, the FTC issued an order and opinion unanimously overturning its Chief Administrative Law Judge’s (ALJ) November 2015 dismissal of charges that LabMD’s allegedly lax data security measures were unfair practices under Section 5 of the FTC Act (see our coverage of the ALJ’s decision here).

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FTC Reverses ALJ’s Decision in LabMD Case

FTC Reverses ALJ’s Decision in LabMD Case

Back in November 2015, Chief Administrative Law Judge (ALJ) D. Michael Chappell ruled that the Federal Trade Commission (FTC) failed to show that LabMD, Inc.’s (LabMD) data security practices caused harm to consumers stemming from an alleged data breach, and therefore, recommended dismissal of the case against LabMD.

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FTC Unanimously Overturns Dismissal of LabMD Security Practices Case

By | HL Chronicle of Data Protection | August 2, 2016
FTC Unanimously Overturns Dismissal of LabMD Security Practices Case

In a case that could have far-reaching implications for how companies are held liable for data security lapses, the FTC issued an order and opinion unanimously overturning its Chief Administrative Law Judge’s (ALJ) November 2015 dismissal of charges that LabMD’s allegedly lax data security measures were unfair practices under Section 5 of the FTC Act (see our coverage of the ALJ’s decision here).

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