Editor’s Note: The issue of whether regulatory agencies need to publicly specify the standards they regulate based on is one with extensive legal implications across the regulatory state.
From: GovInfoSecurity
LabMD Legal Battle With Agency Takes Another Twist
In the latest twist in LabMD’s ongoing legal battle with the Federal Trade Commission, an FTC administrative judge recently ruled the commission must testify about the data security standards it used to pursue enforcement action against the company after two alleged data security incidents (see LabMD vs. FTC: Legal Battle Continues.)
The ruling is significant because the LabMD dispute is among a handful of recent cases in which the FTC has pursued enforcement actions against companies for unfair or deceptive business practices related to alleged data security incidents, legal experts say (see Accretive Health Breach: FTC Settlement) .
LabMD’s ongoing dispute with the FTC stems from a complaint the agency filed last August alleging that the company failed to protect the security of consumers’ personal data, including medical information, in two separate alleged data security incidents. LabMD has argued in a lawsuit filed in federal court that the agency is abusing its power and regulatory authority.
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