From: BuzzFeed
The consumer watchdog’s power to police unfair and deceptive practices extends to data privacy.
A U.S. appeals court ruled on Monday that the Federal Trade Commission has the authority to sue corporations for failing to properly secure customer information from data breaches, giving the agency the green light to hold hotel operator Wyndham Worldwide accountable for failing to safeguard consumers’ data against three hacks, from 2008 to 2010.
The decision of the 3rd Circuit Court of Appeals upholds the FTC’s authority to take enforcement action against a company that has failed to protect consumer data from theft. As Congress has yet to pass a robust data privacy bill amid a barrage of breaches, this ruling bolsters the commission’s initiative to protect customers in the marketplace using its law enforcement powers.
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