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Kirk Nahra Discusses Dismissal of FTC’s Data Security Suit Against LabMD
Kirk J. Nahra, chair of Wiley Rein’s Privacy Practice and co-chair of the Health Care Practice, was quoted by Law360 in a November 17 article about an administrative law judge’s dismissal of the Federal Trade Commission’s (FTC) data security suit against LabMD.
As reported by Law360, the judge rejected the FTC’s argument that LabMD’s alleged failure to institute reasonable and appropriate data security standards constituted an unfair trade practice under Section 5 of the FTC Act because the conduct caused, or is likely to cause, substantial injury to consumers. The ruling set a high bar for the FTC to prove consumer harm in litigating data breach cases, according to the article.
“This is a very important decision because it essentially equates the FTC’s enforcement requirements with the same kinds of standards that private litigants must meet in connection with data breach cases,” Mr. Nahra said. “This decision makes it much tougher for the FTC to act.”
The article can be found here.