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Kirk Nahra Comments on FTC’s Authority to Oversee Data Security and Privacy

Law360
May 14, 2014

Kirk J. Nahra, chair of Wiley Rein’s Privacy Practice and co-chair of the Health Care Practice, was quoted in a Law360 article published yesterday about a Georgia federal judge’s refusal to intervene in a Federal Trade Commission (FTC) proceeding against LabMD Inc.

According to the article, the May 12 ruling cements the FTC’s authority to oversee the data security practices of companies and allow the agency to continue its proceedings before the courts can weigh in.  The medical testing laboratory stands accused of failing to prevent unauthorized access to protected health information.  Even though the ruling does not provide an injunction, it gives LabMD the opportunity to revisit its claims with the court after the FTC’s proceedings are complete.

“We can expect LabMD to pursue this federal court option in the future, assuming the FTC’s administrative decision is not favorable to LabMD,” Mr. Nahra said.