In August 2015 the U.S. granted the Federal Trade Commission the authority to regulate enterprise cybersecurity....
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
What does this mean for organizations that are concerned about cybersecurity regulations?
Actually, not much has changed. The Federal Trade Commission has taken an active role in cybersecurity regulations for over a decade and will continue to do so in the future. In the case of Federal Trade Commission v. Wyndham Worldwide, the Third Circuit Court of Appeals ruled the FTC has the authority to regulate cybersecurity issues under the FTC Act. For those who don't know the history, Wyndham Worldwide was sued by the FTC after the hotel company experienced three separate major data breaches over the course of three years. The lawsuit alleged that Wyndham's "data security failures" led to the breaches and allowed attackers to make millions of dollars' worth of fraudulent charges using customers' payment card accounts -- Wyndham agreed to settle the case in December 2015. The Third Circuit Court of Appeals ruling allowed the FTC to use its authority to prohibit unfair or deceptive practices in its legal action against the hotel company, giving the agency some power over cybersecurity regulations. The ruling is a confirmation that the agency's practices comply with the law and bolsters the FTC's argument that cybersecurity is a regulated trade practice.
The bottom line for organizations subject to the authority of the FTC is they must continue to implement strong cybersecurity controls. Failure to do so may bring them under the regulatory eye, particularly in the wake of a security breach. Generally speaking, this applies only to for-profit businesses, as most nonprofit organizations are not subject to FTC oversight.
Ask the Expert:
Got a vexing problem for Mike Chapple or any of our other experts? Ask your enterprise-specific questions today. (All questions are anonymous.)
Find out what state cybersecurity regulations means for enterprise compliance
Learn about the effects of the Trans-Pacific Partnership agreement on security
Discover how to stay compliant now that Safe Harbor is over
Dig Deeper on Security audit, compliance and standards
Related Q&A from Mike Chapple
It's not possible to eradicate the risk of DoS attacks, but there are steps infosec pros can take to reduce their impact. Mike Chapple shares ...continue reading
The HHS OCR ruled that healthcare ransomware attacks are HIPAA violations, so these covered entities need to react according to the HHS's guidance. ...continue reading
HIPAA regulations incorporate NIST guidelines and standards, so do healthcare organizations need to be compliant with both? Expert Mike Chapple ...continue reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.