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The Implications of FTC v. Wyndham

CYBERSECURITY—U.S.

May 13, 2013

The Wall Street Journal reports on the current “high-stakes legal battle over whether a federal agency can use its consumer-protection powers to police cybersecurity practices at American companies.” Wyndham Worldwide Corp. has asked a federal judge to throw out the Federal Trade Commission’s (FTC) complaint, arguing there is no precedent for holding a company responsible for the actions of hackers. The company has also stated that the FTC has never provided businesses with security-practice guidelines. Morrison & Foerster’s D. Reed Freeman, CIPP/US, said, “If the FTC loses, it’s going to have a hard time bringing these cases.” The FTC is expected to file a response to Wyndham’s dismissal later this month, the report states. (Registration may be required to access this story.)
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