Crossroads Blog | CYBER SECURITY LAW AND POLICY

Federal Trade Commission, Safe Harbor

Cyber Round Up: FTC Loses in LabMD Data Security Case, Safe Harbor Updated Framework Falling Apart,

  • FTC Loses in LabMD Data Security Case: ALJ Sets High Bar for Consumer Harm (Cyber Law Monitor):   This article in Cyber Law Monitor discusses the recent ruling by Administrative Law Judge (“ALJ”) D. Michael Chappell against the Federal Trade Comission (“FTC”) in their data security case against LabMD.  The article states that ALJ held that the FTC failed to show how LabMD’s conduct caused actual harm to consumers based on the FTC’s allegations that LadMD failed to “provide reasonable and appropriate security for personal information on its computer networks.” ALJ ruled that the FTC had shown that harm was possible but failed to demonstrate that it actually occurred or that there was a probability of harm, according to the article. The full article is here; the decision is available below.

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  • Safe Harbor 2.0 Framework Falling Apart (SearchSecurity): A coalition of 34 human rights and privacy Non-Government organizations (“NGO”)s from the U.S. and EU provided a letter to U.S. Secretary of Commerce Penny Pritzker and the EU’s Commissioner for Justice, Consumers and Gender Equality Věra Jourová, according to the article.  This letter states that the updated Safe Harbor framework is flawed as it does little to “reestablish trust for consumers” and the new framework is nothing more than a revision of the previous “… self-regulatory principles that lack legal effect”, according to the article.  The article also states that the revised framework is quite likely to be found invalid by the Court of Justice of the European Union (“CJEU”).  The letter can be found here; whereas the article is available here.

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