The Federal Trade Commission has the authority to regulate lax cybersecurity as an unfair business practice, the U.S. Court of Appeals for the Third Circuit has ruled, Bank Info Security's Tracy Kitten reports. Hotel chain Wyndham Worldwide Corp. was sued by the FTC for allegedly having inadequate security measures to protect consumer data, which the agency said violated the FTC Act's unfair business practice provisions.
Cybersecurity attorney Chris Pierson said the case "'is a seminal case for the FTC for the proposition that the FTC has the power and ability to oversee cybersecurity breach issues as the nation's default regulator."'
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