Third Circuit Decision Upholds FTC Authority to Challenge Deficient Cybersecurity as "Unfair" to Consumers

    View Authors August 2015

    On August 24, 2015, the Third Circuit upheld the Federal Trade Commission’s (FTC’s) authority to challenge deficient cybersecurity practices as “unfair” under the agency’s general authority, in Section 5 of the FTC Act, to regulate “unfair or deceptive acts or practices in or affecting commerce.” The court also ruled that the defendant, the Wyndham hotel chain, had “fair notice” of what the FTC might consider as “unfair” – in part because prior FTC cases had challenged practices similar to Wyndham’s. Read further for implications of the Third Circuit’s decision.