United States:
Eleventh Circuit Throws Out FTC Order To Clinical Laboratory
25 October 2018
Jones Day
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On June 6, the Eleventh Circuit Court of Appeals threw out a
cease-and-desist order the Federal Trade Commission
("FTC") issued against a clinical laboratory. The
order had directed the company to overhaul its data security
program pursuant to the FTC's authority to regulate unfair acts
or practices under Section 5(a) of the FTC Act. Even assuming that
the company's alleged failure constituted an unfair act or
practice, the Eleventh Circuit nevertheless found that the
cease-and-desist order exceeded the FTC's authority by failing
to enjoin any specific act or practice, instead mandating a
complete overhaul of the company's data protection program.
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