Jun 7, 2018

Is Inadequate Data Security an Unfair Trade Practice?

Doctor's Office: Inadequate Data Security?

In LabMD, Inc. v. Federal Trade Commission, Case No. 16-16270 (decided June 6, 2018) the United States Court of Appeals for the Eleventh Circuit addressed the enforcement of an FTC order finding that a business’s allegedly inadequate data security practices were unfair trade practices under Section 5(a) of the Federal Trade Commission Act. LabMD operated a medical laboratory that conducted diagnostic testing for cancer. Contrary to LabMD policy, an employee installed on a company computer a file-sharing application. That application allowed an outside party to download a file that contained the personal information of thousands of customers. The FTC initiated… Read more