From: Forbes
By Eben Kaplan
WASHINGTON – It has been called “the most important cybersecurity case you’ve never heard of,” and now it’s getting a second life. The core issue in the dispute between the Federal Trade Commission (FTC) and Wyndham Worldwide WYN -2.2% Corporation is whether the FTC has the authority to enforce data security standards in the US commercial sector. Last April a federal judge ruled in favor of the FTC, but Wyndham has appealed. The 3rd Circuit Court of Appeals heard oral arguments earlier this month, and regardless of how that court rules, that decision is also likely to be appealed.
Until the case is decided, regulatory enforcement of cybersecurity in the United States will remain in a state of limbo. The FTC has authority under the Federal Trade Commission Act to prohibit “unfair” or “deceptive” business practices. It claims this authority extends to cybersecurity practices, and Wyndham argues the FTC is overreaching.
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