Last Wednesday, the FTC took the next step in its ongoing Section 5 enforcement proceedings against LabMD, filing a formal notice seeking an appeal of Administrative Law Judge Chappell’s initial decision before the full Commission.  Judge Chappell’s initial decision, announced on November 13, dismissed the FTC’s complaint against LabMD, finding that the FTC failed to carry its burden of demonstrating a “likely substantial injury” resulting from LabMD’s allegedly “unfair” data security practices.  The notice of appeal states that the FTC “intends to preserve and advance all arguments presented” before Judge Chappell in prior proceedings.  Since the Commission reviews Judge Chappell’s initial decision, including all findings of fact and legal conclusions, on a de novo basis, the FTC’s ruling could be markedly different than the initial decision by Judge Chappell.  The appeal comes only a few days after LabMD filed a separate lawsuit against the individual FTC attorneys involved in the case, alleging violations of LabMD’s constitutional rights in connection with the FTC’s Section 5 enforcement action.

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Photo of Caleb Skeath Caleb Skeath

Caleb Skeath advises clients on a broad range of cybersecurity and privacy issues, including cybersecurity incident response, cybersecurity and privacy compliance obligations, internal investigations, regulatory inquiries, and defending against class-action litigation. Caleb holds a Certified Information Systems Security Professional (CISSP) certification.

Caleb specializes in assisting…

Caleb Skeath advises clients on a broad range of cybersecurity and privacy issues, including cybersecurity incident response, cybersecurity and privacy compliance obligations, internal investigations, regulatory inquiries, and defending against class-action litigation. Caleb holds a Certified Information Systems Security Professional (CISSP) certification.

Caleb specializes in assisting clients in responding to a wide variety of cybersecurity incidents, ranging from advanced persistent threats to theft or misuse of personal information or attacks utilizing destructive malware. Such assistance may include protecting the response to, and investigation of an incident under the attorney-client privilege, supervising response or investigation activities and interfacing with IT or information security personnel, and advising on engagement with internal stakeholders, vendors, and other third parties to maximize privilege protections, including the negotiation of appropriate contractual terms. Caleb has also advised numerous clients on assessing post-incident notification obligations under applicable state and federal law, developing communications strategies for internal and external stakeholders, and assessing and protecting against potential litigation or regulatory risk following an incident. In addition, he has advised several clients on responding to post-incident regulatory inquiries, including inquiries from the Federal Trade Commission and state Attorneys General.

In addition to advising clients following cybersecurity incidents, Caleb also assists clients with pre-incident cybersecurity compliance and preparation activities. He reviews and drafts cybersecurity policies and procedures on behalf of clients, including drafting incident response plans and advising on training and tabletop exercises for such plans. Caleb also routinely advises clients on compliance with cybersecurity guidance and best practices, including “reasonable” security practices.

Caleb also maintains an active privacy practice, focusing on advising technology, education, financial, and other clients on compliance with generally applicable and sector-specific federal and state privacy laws, including FERPA, FCRA, GLBA, TCPA, and COPPA. He has assisted clients in drafting and reviewing privacy policies and terms of service, designing products and services to comply with applicable privacy laws while maximizing utility and user experience, and drafting and reviewing contracts or other agreements for potential privacy issues.