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Patricia O'Connell
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Kirk Nahra Discusses Wyndham Ruling and the FTC’s Authority to Oversee Cybersecurity

Daily Dashboard
April 9, 2014

Kirk J. Nahra, chair of Wiley Rein’s Privacy Practice  and co-chair of the Health Care Practice, was quoted in an article published today in the International Association of Privacy Professionals’ Daily Dashboard about the outcome of a court ruling that said the Federal Trade Commission (FTC) has the authority to enforce data-security standards under the FTC Act.

The April 7 opinion by a federal judge in New Jersey does not clearly define the rules by which the FTC can enforce data-security standards, according to the article, making it cumbersome for companies to navigate.  The FTC brought suit against Wyndham Worldwide Corp. after the company’s information systems were breached three times.  Before the ruling, the FTC had asked Congress to pass legislation that would give it explicit power to regulate data-security practices.

The court ruling will likely embolden the FTC to be more aggressive in its future privacy enforcement efforts, and may “reduce pressure on Congress going forward to pass data security legislation,” Mr. Nahra said.

Read the entire article here.