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LabMD CEO Fights FTC Complaint, Asks for Standards

DATA LOSS—U.S.

September 17, 2013

Michael Daugherty, president and founder of LabMD, is challenging a Federal Trade Commission (FTC) complaint accusing the medical testing lab of failing to take “reasonable and appropriate measures” to protect sensitive customer data, Jacksonville Business Journal reports. The complaint followed a 2012 breach in which billing data for 9,000 LabMD patients was stolen by identity thieves. LabMD has refused to sign a consent agreement with the FTC, alleging the FTC is making up data security standards as it goes along. Daugherty says the FTC should establish data security standards or Congress should define businesses’ obligations.
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