From: The Wall Street Journal
By Brent Kendall
A federal judge on Monday provided a boost to Federal Trade Commission efforts to police corporate cybersecurity, allowing the agency to move forward with a lawsuit alleging Wyndham Worldwide Corp. failed to make reasonable efforts to protect consumer information.
U.S. District Judge Esther Salas in New Jersey rejected arguments by Wyndham that the FTC didn’t have the authority to regulate corporate data security practices.
The case is being watched closely as a test of the FTC’s powers. The commission has brought dozens of data security cases but the overwhelming majority produced out-of-court settlements, meaning judges were never asked to weigh in on the agency’s authority.
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