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The Wall Street Journal Quotes Olshan’s Andrew Lustigman on Cloudpets Data Breach

March 16, 2017

Olshan’s Andrew Lustigman, head of the Advertising, Marketing & Promotions Practice Group, was quoted in The Wall Street Journal on the recent data breach of Cloudpets, a toy line manufactured by Los Angeles-based Spiral Toys that uses the Internet to transmit messages between loved ones. In the breach, hackers stole and held for ransom children’s email addresses, user names, and passwords. “If I was advising a company in the area,” Mr. Lustigman affirmed, “I think every time you have these data breach issues, you have to get out in front of them. If somebody is reporting [a breach or vulnerability], that is something that needs to go very high up, and this impacts all sizes of business, large and small.” The breach is especially alarming given the very young age of the victims (who are protected under the Children’s Online Privacy and Protection Act, or COPPA), but Mr. Lustigman is confident that the Federal Trade Commission is perfectly equipped to handle such delicate instances: “[The FTC] is very attuned to data security, and focuses on reasonable standards for data security. If it is a child’s device and you are collecting data, a much more heightened level of data security is required.”

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