Landmark FTC Win Fuels Uncertainty for Data Breach Targets

April 8, 2014 – In The News

Scott L. Vernick was quoted in the Law360 article, "Landmark FTC Win Fuels Uncertainty for Data Breach Targets." Full text can be found in the April 8, 2014, issue, but a synopsis is noted below.

A federal court declared on Monday that the Federal Trade Commission has the authority to bring lawsuits against companies over allegedly lax data security practices.

“The ruling removes any doubt that the FTC is here to stay,” said Scott Vernick, a noted privacy attorney. “Not only will they be able to continue to bring extensive and aggressive enforcement actions as they have done in the past, but now, they have another arrow in their quiver.”

The ruling could leave companies struggling to avoid lawsuits brought by the regulator, however, as it is a bit vague on what constitutes “reasonable” safeguards.