Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

FTC's <i>Wyndham</i> Ruling Raises Data Security and Privacy Issues for Franchisors

By David F. Katz, Daniel Lumm and Mark VanderBroek
July 02, 2014

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.

Read These Next
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.