Appeals Court: FTC can sue companies that are hacked

A U.S. Appellate court handed down a decision that won’t be popular with companies that are scrambling to stay ahead of the security hamster wheel: the Federal Trade Commission does indeed have the authority to sue organiztions that are deemed not to have taken adequate security precautions to prevent customer data from being exposed.

The case was in regard to Wyndham Hotels, which had the data of over 600,000 customers stolen from its databases back in 2008-2009 – but the precedent set is sure to have far-reaching effects in the business world.

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