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Dec
30

LabMD challenges scope of FTC’s cyber authority

Editor’s Note: For more on this story, see here.

From: Benefits Pro

Says FTC doesn’t have authority to regulate cybersecurity practices of medical laboratories

By C. Ryan Barber

Setting the stage for a fresh test of the Federal Trade Commission’s power to police online security or cybersecurity, a now-defunct medical laboratory on Tuesday urged a U.S. appeals court to overturn an agency ruling that blamed lax data-protection practices for the exposure of nearly 10,000 patients’ personal information.

The Georgia-based company LabMD Inc., which said it closed its doors after the FTC enforcement action, is pressing claims in the U.S. Court of Appeals for the Eleventh Circuit that the agency overreached in the data-breach case. Represented by Ropes & Gray, LabMD late Tuesday filed its opening brief in the appeals court.

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