FTC can sue companies with poor information security, appeals court says
http://arstechnica.com/tech-policy/2015/08/ftc-can-sue-companies-with-poor-information-security-appeals-court-says/
On Monday, a federal appeals court ruled that the
Federal Trade Commission (FTC) has the power to take action
(PDF) against companies that employ poor IT security practices.
The ruling, from the United States Court of Appeals for the
Third Circuit, came as part of a lawsuit between the FTC and
Wyndham Worldwide Corporation, which manages a collection of
hotels throughout the US. In 2008 and 2009, Wyndham suffered
three different breaches of its network, ultimately losing
payment card information for more than 619,000 customers and
causing $10.6 million in loss due to fraud. The FTC sued Wyndham
in 2012 for failing to protect its customers from hackers, and
Wyndham countered by saying that it was a victim of the hack
itself and should not be penalized by the FTC for the breach.
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--Lauren--
Lauren Weinstein ([email protected]): http://www.vortex.com/lauren
Founder:
- Network Neutrality Squad: http://www.nnsquad.org
- PRIVACY Forum: http://www.vortex.com/privacy-info
Co-Founder: People For Internet Responsibility: http://www.pfir.org/pfir-info
Member: ACM Committee on Computers and Public Policy
Lauren's Blog: http://lauren.vortex.com
Google+: http://google.com/+LaurenWeinstein
Twitter: http://twitter.com/laurenweinstein
Tel: +1 (818) 225-2800 / Skype: vortex.com
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