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 Enterprise Compliance Management Strategy
Mike Chapple asks:
What's your opinion of the FTC ruling on security regulations?
0 ResponsesJoin the Discussion
Related Q&A from Mike Chapple
A proposed cyberattack information database in the U.K. aims to improve cyberinsurance. Expert Mike Chapple explains what collecting data breach ...continue reading
The proposed CFTC regulations on cybersecurity testing are set to finalize in 2016. Expert Mike Chapple discusses the effects these regulations have ...continue reading
Whether Apple is a HIPAA covered entity was called into question when it advertised for a health regulations lawyer. Expert Mike Chapple discusses ...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.