Court Upholds FTC’s Power to Police Corporate Cybersecurity; Can Sue Breached Companies Failing to Invest in Security

A federal appeals court in Philadelphia has succeeded where Congress,on numerous occasions, has stumbled, effectively affirming the power of the federal government to take action against poor cybersecurity practices.

The Third U.S. Circuit Court of Appeals ruled Monday that the Federal Trade Commission could proceed with a lawsuit against Wyndham Worldwide Corp. over a series of breaches between 2008 and 2010 that resulted in the alleged theft of hundreds of thousands of credit-and debit card numbers. “The decision bolsters the commission’s power to police corporate cybersecurity at a time when Congress hasn’t passed comprehensive data-security legislation,” the Journal’s Brent Kendall writes.

Read full article on the Wall Street Journal…

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