ATLANTA, GA (June 7, 2018) – Patrick Gaul, Executive Director of the National Technology Security Coalition, released the following statement today:
“On June 6, 2018, the United States Court of Appeals for the Eleventh Circuit dismissed the Federal Trade Commission’s (FTC) enforcement action that alleged LabMD’s data security practices were in violation of Section 5 of the FTC Act. We applaud this decision after having filed an Amicus Brief on behalf of LabMD on January 3, 2017.
“In 2013, the FTC sued Atlanta-based LabMD, a medical testing company, alleging that its lax data security practices were unfair and in violation of Section 5 of the FTC Act. This suit led to an enforcement action that ultimately put LabMD out of business.
“Today’s decision is important because it helps set legal precedent about what constitutes consumer damages. It also rejects the notion that the FTC can unilaterally determine what represents reasonable security practices without publishing any guidelines or best practices for companies to follow.
“The National Technology Security Coalition (NTSC) is pleased that the facts in this case finally came to light and that the former CEO of LabMD, Michael Daugherty, has been vindicated.”
About the National Technology Security Coalition (NTSC)
The National Technology Security Coalition (NTSC) is a non-profit, non-partisan organization that serves as the preeminent advocacy voice for Chief Information Security Officers (CISOs) across the nation. Through dialogue, education, and government relations, we unite both public and private sector stakeholders around policies that improve national cybersecurity standards and awareness.