Jenner & Block

Client Alert: All Is Fair For The FTC: Court Upholds FTC’s Authority To Bring Claims For Unfair Data Security Practices

On April 7, 2014, a federal district court affirmed for the first time that the Federal Trade Commission has the authority to bring enforcement actions against companies that engage in unfair data security practices. The much-watched case, which the FTC brought against Wyndham Hotels and Resorts following a data breach that compromised the credit card information of hundreds of thousands of consumers, has significant implications for the hospitality industry and virtually all companies that engage in business online, according to authors Mary Ellen Callahan, Lindsay C. Harrison, Sabrina N. Guenther and Esteban M. Morin.