Dive Brief:
- The Federal Trade Commission (FTC) is expected to continue to police businesses’ data security practices in 2017, predicts Bloomberg BNA, though that could change depending on who President-elect Donald Trump nominates to the Commission.
- The five-member commission is currently down to three, leaving two spots for Trump to fill immediately.
- Over the past decade the FTC has established itself as the government’s chief cybersecurity enforcer. But several entities have challenged the FTC’s authority to police cybersecurity shortcomings.
Dive Insight:
Though Trump has not yet indicated a position on the FTC’s role in cybersecurity, his appointments to the commission could be game changers.
Over the law several years, the FTC has sued more than 50 companies, including LifeLock, Oracle and Snapchat, on the grounds that their security policies did not adequately protect consumers. Few companies have fought the charges.
LabMD is a notable exception. In the latest twist in a long-running court battle with the FTC, LadMD came out on top, calling into question the FTC's self-proclaimed role of ensuring companies maintain data security measures to protect customers.
LabMD's CEO and others argue that Congress did not give explicit directions for the agency to go after companies with weak cybersecurity.
