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Judge Says FTC Can Bring Enforcement Actions Regarding Corporate Data Security Practices

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April 08, 2014 AT 4:55 AM
Ruling on a motion to dismiss brought by Wyndham hotels, a Federal District Court has sided with the government in deciding that the Federal Trade Commission has authority under the unfairness prong of the FTC Act to bring enforcement actions to remedy unreasonable data security practices. The court ruled that it is not required that Congress explicitly give the FTC the authority to use the FTC Act against companies who cause consumer and business harm by maintaining weak data security systems.