On July 29, 2016, the three Federal Trade Commission (“FTC”) commissioners vacated their chief administrative law judge’s bold decision to dismiss the agency’s action against a medical testing lab, LabMD, In the Matter of LabMD Inc., No. 9357. The commissioners concluded that LabMD’s data security practices were unreasonable and constituted an unfair act or practice that violated Section 5 of the Federal Trade Commission Act. More importantly, the commissioners’ decision addressed the issue of standing when there has been no affirmative showing of harm in data breach cases.
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