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Patricia O'Connell
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Kirk Nahra Discusses Court Ruling Granting the FTC Cybersecurity Oversight Authority

April 9, 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 the Federal Trade Commission’s (FTC) authority to bring suit against a company for allegedly lax data security practices.

The April 7 ruling by a federal judge in New Jersey allows the FTC to bring suit against Wyndham Worldwide Corp. on allegations that it failed to maintain “reasonable” data security procedures, Law360 reported.  The ruling did not force the FTC to clarify its definition of “reasonable,” which, according to the article, offers little guidance to companies seeking to comply with the agency.  The merits of the FTC’s authority to regulate cybersecurity will likely be addressed as the lawsuit moves forward.

“It will be interesting to see whether Wyndham simply folds at this point or pushes forward and makes the FTC prove its case,” Mr. Nahra said.