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Third Circuit Finds that the FTC Has Authority to Sue Companies for Inadequate Cybersecurity Practices as an “Unfair” Practice

  • Reading Time: < 1 | Published: September 14, 2015 in

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In addition to multi-party or class action lawsuits,1 companies that have their computer networks hacked may also be subject to investigations and enforcement actions by the Federal Trade Commission (“FTC”). This week the Third Circuit Court of Appeals decided in Federal Trade Commission v. Wyndham Worldwide Corp. that the FTC has authority to regulate the way companies safeguard personal information not simply for “deceptive” acts, but as an “unfair” business practice. This decision highlights the need for companies to familiarize themselves with the FTC’s guidance on cybersecurity measures. Read More.

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