In Landmark Decision, Third Circuit Affirms FTC’s Power to Regulate Cybersecurity
Handing a major victory to the Federal Trade Commission (“FTC”) against the Wyndham hotel chain, the U.S. Court of Appeals for the Third Circuit affirmed the FTC’s long-standing practice of policing companies’ data security practices under the “unfairness” prong of Section 5 of the Federal Trade Commission Act (the “FTC Act”). The decision in FTC v. Wyndham Worldwide Corp. validated a decade of FTC enforcement activity in this sphere, including more than 50 enforcement actions brought against U.S. companies since 2005.