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FTC's <i>Wyndham</i> Ruling Raises Data Security and Privacy Issues for Franchisors
In a ruling delivered April 7, a federal judge in New Jersey handed the Federal Trade Commission (FTC) a resounding victory in the first round of an ongoing court battle regarding its authority as the primary regulator of issues related to consumer data security and privacy in the United States. The court denied Wyndham's motion to dismiss the FTC's complaint, which challenged the FTC's authority to bring enforcement actions related to data security issues, and the sufficiency of the allegations in the complaint. See, The Federal Trade Commission vs. Wyndham Worldwide Corporation, 2:13-cv-01887-ES-JAD.
While this case is far from over, for now this ruling provides judicial validation of the FTC's authority to pursue breaches or potential breaches of consumer privacy as deceptive and unfair trade practices subject to the jurisdiction of its regulation under Section 5 of the Federal Trade Commission Act.
Of more concern for franchise business models, the ruling suggests that franchisors are at risk of being found responsible for data security and privacy practices (and breaches) of its franchisees, in the common situations in which the franchisor requires franchisees to implement specified POS and/or computer systems that often connect to the franchisor's network and computer systems. However, the ruling also provides guidance in the area of best practices in privacy policy and franchise agreement drafting to help minimize this risk.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.