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Ruling: FTC Can Hold Wyndham Liable For Data Breach
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ColbyC138
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ColbyC138,
User Rank: Apprentice
8/26/2015 | 6:45:26 PM
Government Shakedown for Self-Funding
The FTC and state DOJ gangs' jurisdiction and standing to sue companies for being breached has long been questioned. This ruling paves the way to a lot of government action following a security breach. Not only will companies have to deal with the remediation, regulatory fines and civil lawsuits following a breach, but will also have to defend against criminal suits from multiple agencies. The price of having poor security and being compromised is about to get a lot more expensive. 

This was a key case for them to win as it will open up a significant revenue stream in the medium to long term. But, it is a really dangerous precedent. All of these post breach lawsuits and shakedowns are going to be financially cripling to organizations trying to recover. I don't really see the value in the government doing this as it does not help to solve the problem, except to provide yet another disincentive for being hacked and we don't really need any moreof those. It seems that this is all about obtaining revenue. Should this be the place of government - self funding through lawsuits? It sounds dangerous.
Whoopty
50%
50%
Whoopty,
User Rank: Ninja
8/25/2015 | 7:13:03 AM
Avid Life Media
Oof. This is bad news for Ashley Madison/Avid Life Media. While this hotel chain may have been liable for some details, exposing the information of over 37 million individuals is far worse, especially considering the nature of the information. I think rulings like this will be cited by a lot of lawyers that go after ALM in the near future. It's going to kill the company. 
Joe Stanganelli
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50%
Joe Stanganelli,
User Rank: Ninja
8/24/2015 | 4:48:17 PM
Yup.
I've yet to read the ruling (though I look forward to taking a look), but this kind of decision isn't particularly surprising.  The FTC has extremely broad powers to regulate and enforce fair trade, and the respective definitions of what "fair trade" and "unfair and/or deceptive trade practices" are very broad indeed.


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