Bloomberg Quotes Michelle Reed on FTC’s Stepped-Up Data Security Stance
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Akin Gump litigation partner Michelle Reed, co-head of the firm’s cybersecurity, privacy and data protection practice, has been quoted in the Bloomberg article “FTC Takes Tougher Data Security Stance After LabMD Fight.”
The article reports that the Federal Trade Commission is issuing specific data security requirements to companies as part of agency settlements and policing businesses more aggressively than in the past. This follows a failed 2013 court battle with now-defunct LabMD after the medical testing laboratory revealed the personal information of approximately 10,000 consumers. A federal appeals court eventually dismissed a cease-and-desist order against the company, saying it was unenforceable because it mandated a complete overhaul of its data-security program without providing much guidance as to how this would be accomplished.
“The FTC is realizing,” Reed said, “to stay relevant and to drive more consistency across businesses, they need to utilize their authority in a way that forces a reasonable security standard on companies.”
