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Kirk Nahra Discusses Data Security Implications in Closely Watched LabMD v. FTC Case

Law360
July 5, 2017

Kirk J. Nahra, chair of Wiley Rein’s Privacy & Cybersecurity Practice, was quoted in a July 3 Law360 article discussing the most closely watched cases in the area of cybersecurity and privacy, including LabMD v. FTC – which involves the Federal Trade Commission’s (FTC) authority to regulate companies’ data security activities. The case stems from LabMD’s 2013 challenge of the FTC’s claim that the company had violated Section 5 of the FTC Act by failing to secure consumers’ personal data.  

LabMD appealed the case to the Eleventh Circuit last year, after the FTC overturned a 2015 decision by the commission’s own administrative law judge in concluding the company had caused harm to consumers in violation of the unfairness portion of Section 5. In June 2017, the Eleventh Circuit heard oral arguments, and a decision is expected in the coming months.

“I’m still watching the LabMD case, to see if the courts restrict – or support – the FTC’s overall efforts on data security and standards under which it can act,” said Mr. Nahra. “It’s not clear whether the new [Trump] Administration will take the same path, but the courts could define an answer on this.”