Dive Brief:
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A U.S. appeals court ruled the Federal Trade Commission has the authority to regulate corporate cybersecurity.
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The 3-0 decision Monday by the 3rd U.S. Circuit Court of Appeals in Philadelphia upheld a 2014 lower court ruling — allowing a case involving the FTC and Wyndham Worldwide Corp. to go forward.
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The FTC wants to hold hotel operator Wyndham Worldwide Corp. accountable for data breaches that led to more than $10.6 million in fraudulent charges.
Dive Insight:
The court ruled the FTC may pursue a lawsuit accusing Wyndham of failing to properly safeguard consumers' information. The three breaches, which occurred in 2008 and 2009, resulted in data being stolen from more than 619,000 consumers.
Wyndham brands include Days Inn, Howard Johnson, Ramada, Super 8 and Travelodge.
"It is not only appropriate, but critical, that the FTC has the ability to take action on behalf of consumers when companies fail to take reasonable steps to secure sensitive consumer information," said FTC Chairwoman Edith Ramirez.
