From: Bloomberg/BNA
By John C. Richter, Christopher C. Burris, Alexander K. Haas and John A. Drennan
The Federal Communications Commission (FCC) entered the data security enforcement field in October, levying a $10 million fine against two telecommunications companies for failing to secure and protect their customers’ personal information. This is first time the FCC has usedits authority to levy fines based on inadequate data security, and it has uncovered a divergence of views within the FCC about the agency’s own enforcement authority. While FCC Enforcement Bureau Chief Travis LeBlanc has been quoted as saying that the fine “will not be the last,” two FCC commissioners issued sharply worded dissents from the FCC’s decision, openly questioning the agency’s authority act in the data security enforcement area. Given the clear significance of data security to today’s business world, these developments must be watched closely.
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