LabMD “will likely” challenge the Federal Trade Commission’s recent decision against it, Bloomberg BNA reports. That ruling said consumers did not have to experience tangible harm in order to trigger a complaint under the FTC Act. Rather, a company’s “lax security” is suitable grounds for an enforcement action, the report states. The ruling “may … influence other legal proceedings where the inability of plaintiffs to demonstrate harm resulting from a data breach of their personal information has been a leading reason for dismissal of their actions,” the report adds. “I'm trying to protect other companies from the FTC,” said LabMD CEO Michael Daugherty.
If you want to comment on this post, you need to login.