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House panel investigating FTC data breach enforcement

Grant Gross | June 2, 2014
A U.S. House of Representatives committee has reportedly launched an investigation into the Federal Trade Commission's use of information from a peer-to-peer security vendor to bring a data breach complaint against a medical testing laboratory.

The FTC, in bringing a complaint against LabMD acted in a way that was "arbitrary, capricious" and an abuse of discretion, lawyers for the lab wrote in September. The agency has acted "contrary to constitutional right" and "in excess of statutory jurisdiction," LabMD's lawyers said then.

LabMD tried to halt the FTC's data breach proceeding by filing a lawsuit in U.S. District Court for the Northern District of Georgia in 2013. This month, Judge William Duffey Jr. ruled he didn't have jurisdiction to stop the FTC's case, although he was critical of what he called a lack of data security guidance issued by the FTC.

 

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