FTC's Stretch of its Authority in Recent Cybersecurity-Based Action Draws a Motion to Dismiss

FTC's Stretch of its Authority in Recent Cybersecurity-Based Action Draws a Motion to Dismiss

Feb 14, 2017

Client Alert

Co-author, Brownstein Client Alert, February 13, 2017

One of the last actions taken by the Federal Trade Commission (“FTC”) prior to the transition from a Democratic-led administration to a Republican-led administration was a final attempt to aggressively pursue and expand the commission’s enforcement actions. On Jan. 5, 2017, the FTC filed in the U.S. District Court for the Northern District California a lawsuit against D-Link Corporation and D-Link Systems, Inc., that warrants your attention because it poses a significant new exposure to companies addressing privacy and data security.

The case filed against the D-Link Corp. (Federal Trade Commission v. D-Link Corp., case number 3:17-cv-00039) seeks to impose liability upon a company for allegedly leaving private consumer data vulnerable to hackers. However, unlike other actions brought by the FTC, there is no evidence of a breach occurring or of any consumers suffering harm.

To read the full client alert, please click the PDF above. 

Meet The Team

Richard B. Benenson Shareholder T 303.223.1203 rbenenson@bhfs.com
Evan M. Rothstein Shareholder T 303.223.1116 erothstein@bhfs.com
Jonathan C. Sandler Shareholder T 310.564.8672 jsandler@bhfs.com