Wyndham Hotels and Resorts has agreed to settle the FTC’s charges that its corporate data security practices were deficient under the unfairness prong of Section 5 of the FTC Act. Assuming the district court approves the proposed stipulated consent order, this concludes the litigation between Wyndham and the FTC. Under the terms of the twenty-year … Continue Reading
The Third Circuit released its decision in FTC v. Wyndham Worldwide Corp. earlier today, affirming the district court’s decision that the FTC has the authority to regulate companies’ data security practices under the “unfair practices” prong of Section 5 of the FTC Act. The highly anticipated precedential opinion dismissed Wyndham’s arguments that the FTC lacks … Continue Reading
On Friday, March 27, 2015, the Federal Trade Commission and Wyndham Worldwide Corp. filed supplemental briefing in the Third Circuit regarding whether the FTC had made an adjudicative decision that the FTC Act prohibits unreasonable cybersecurity practices and, if not, whether a federal court could hear a case charging a violation of the FTC Act … Continue Reading
Today, the U.S. Court of Appeals for the Third Circuit heard oral arguments in FTC v. Wyndham Worldwide Corp. The court focused on several themes: First, whether Congress has entrusted the FTC to define new unfair practices, whether the FTC has declared that unreasonable cybersecurity practices are unfair, and whether the FTC is asking the … Continue Reading
On February 20, the Third Circuit sent a letter to counsel in FTC v. Wyndham Worldwide Corp., identifying at least one topic that will be addressed in the upcoming oral argument regarding the parties’ dispute over whether the FTC has the authority to regulate companies’ data security practices: whether unreasonable cybersecurity practices are “unfair.” The letter … Continue Reading
By Meena Harris and Caleb Skeath Data Breaches Studies show increase. Amidst a flurry of high-profile breaches during 2014, several studies confirmed that data breaches as a whole have risen significantly over the past few years. The California Attorney General released a study showing a 28% increase in breaches in 2013 as compared to 2012. … Continue Reading
Earlier this week, U.S. District Court Judge Esther Salas directed the Federal Trade Commission (“FTC”) and Wyndham Hotels and Resorts to seek mediation to resolve their landmark dispute over whether the FTC has the authority to regulate companies’ data-security practices. As we’ve previously reported, the FTC alleged that Wyndham violated Section 5 of the FTC … Continue Reading
Last week, a federal judge in the District of New Jersey denied Wyndham Hotels and Resorts’ motion to dismiss the FTC’s complaint alleging Wyndham violated the FTC Act by failing to provide reasonable security for its customers’ personal information. This Covington E-Alert provides a detailed look at the parties’ arguments and the court’s holdings in … Continue Reading
Earlier today, in a long-awaited decision, Judge Salas of the District of New Jersey denied Wyndham Hotels and Resorts’ motion to dismiss a Federal Trade Commission (“FTC”) lawsuit alleging Wyndham violated Section 5 of the FTC Act by failing to provide “reasonable” security for the personal information of its customers. The case has been closely watched … Continue Reading
Today, the Federal Trade Commission announced settlements with two mobile app makers that allegedly failed to provide reasonable security for the personal information collected in connection with their apps. In complaints against Credit Karma, Inc. and Fandango LLC, the FTC alleged that both companies’ apps failed to validate SSL certificates, a security shortcoming that could … Continue Reading
Today, the Federal Trade Commission is defending its authority to enforce Section 5 of the FTC Act against Wyndham Hotels in connection with alleged lax data security procedures. Following several publicized data security breaches, the FTC investigated Wyndham and concluded that the hotel company failed to employ “reasonable and appropriate” data security practices, citing, for … Continue Reading
