Saikali Covers New Standards for FTC Data Security Authority With Law360
Shook, Hardy & Bacon Data Security and Privacy Practice Co-Chair Al Saikali discusses the high bar set to prove consumer harm after an administrative law judge dismissed the Federal Trade Commission's data security suit against LabMD in a November 17 Law360 article titled, “FTC's Data Security Authority Limited In LabMD Ruling.”
The ruling limits the scope of the FTC’s Section 5 authority, changing the threshold for sustaining a data security claim to actual consumer injury, not just possible injury. Article sources predict an immediate impact on the FTC’s aggressive data enforcement agenda. Saikali predicts, “This could be the opening that leads to more companies, at least those with the resources, challenging other similar FTC enforcement actions in the future.”
The ruling limits the scope of the FTC’s Section 5 authority, changing the threshold for sustaining a data security claim to actual consumer injury, not just possible injury. Article sources predict an immediate impact on the FTC’s aggressive data enforcement agenda. Saikali predicts, “This could be the opening that leads to more companies, at least those with the resources, challenging other similar FTC enforcement actions in the future.”
