Court Ruling Leads to Fears of FTC Litigation on Cybersecurity

August 28, 2015 – In The News
The Hill

Scott L. Vernick was quoted in The Hill article, “Court Ruling Leads to Fears of FTC Litigation on Cybersecurity.” Full text can be found in the August 28, 2015, issue, but a synopsis is below.

The U.S. Court of Appeals for the Third Circuit unanimously ruled that the Federal Trade Commission (FTC) can move forward with a lawsuit alleging that Wyndham Worldwide Corp. did not do enough to protect its customers’ personal data.

From 2008 to 2010, Wyndham suffered three breaches in which more than 600,000 credit- and debit-card numbers were stolen by hackers.

While the ruling has left some concerned that it could result in more punitive action by the FTC, Scott Vernick, a noted privacy attorney, says many companies already work to ensure their cybersecurity practices don’t draw enforcement attention from the FTC.

The decision simply “confirms what everyone operating in the field already knew or took for granted,” said Vernick.

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