There is a good chance that the Federal Trade Commission’s recent reversal of a decision by an administrative law judge on LabMD’s data security practices will be appealed in court, according to attorneys familiar with the field. But in the meantime, and especially if the appeal is not successful, companies appearing before the FTC will likely have a higher bar to pass to prove data security.
The case centers around how LabMD, a clinical lab for physicians, allegedly failed to protect medical and other personal information of consumers. Between 2001 and 2014, LabMD collected sensitive personal information on over 750,000 patients.
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