Major Challenge to FTC's Cybersecurity Authority Evaporates


The Federal Trade Commission and Wyndham Worldwide this month reached a settlement over allegations the company violated federal law regarding the protection of customer records. The settlement could have a significant impact on e-commerce in that it ended a major legal challenge to the FTC’s extension of its authority into the realm of cybersecurity. Wyndham essentially agreed to abandon its opposition to the FTC’s assertion that federal law allows it to pursue charges against businesses that fail to protect consumers from cyberthreats.

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