In a strongly worded opinion, the Third Circuit Court of Appeals on Monday slammed Wyndham Worldwide Corporation’s arguments that the FTC did not have jurisdiction to enforce the security practices of businesses following a data breach. The Court noted that it found most of Wyndham’s arguments “unpersuasive.” This is the first Circuit Court of Appeals case to opine on the FTC’s jurisdiction in data security matters.
After the Court issued its opinion, FTC Chairwoman Edith Ramirez stated in a press release that the decision
reaffirms the FTC’s authority to hold companies accountable for failing to safeguard consumer data. It is not only appropriate, but critical, that the FTC has the ability to take action on behalf of consumers when companies fail to take reasonable steps to secure sensitive consumer information.