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FTC loses: Judge dismisses FTC data security case against LabMD

Discussion in 'Network World' started by RSS, Nov 18, 2015.

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    RSS New Member Member

    Cancer-screening laboratory LabMD won its case against the FTC. LabMD was accused of two data breaches, one in 2012 and one in 2008 when a company spreadsheet that contained sensitive personal information of 9,000 consumers was found on a peer-to-peer network. Seven years of litigation later, FTC Chief Administrative Law Judge Chappell’s issued an initial ruling (pdf) dismissing the FTC’s complaint against LabMD since the FTC had failed to prove that LabMD’s “alleged failure to employ ‘reasonable and appropriate’ data security ‘caused, or is likely to cause, substantial injury to consumers’.”

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