Lustigman Quoted Regarding FTC’s Power to Penalize Companies for Insufficient Cybersecurity Practices
Olshan Advertising Partner Andrew Lustigman was quoted extensively by AdExchanger.com, an online trade publication that provides news and analysis dedicated to the data-driven marketing space, on the issue of cybersecurity practices. Recently Wyndham Hotels lost a motion to dismiss FTC allegations that Wyndham engaged in “unfair” practices” by exposing consumer personal data to potential theft. This case affirms the FTC’s power to penalize companies for insufficient cybersecurity practices under the “unfairness” prong of Section 5 of the FTC Act. Lustigman points out that regardless of how the case turns out, this “establishes a standard” for the FTC to bring cases against businesses under the unfairness prong. Additionally he notes the FTC can potentially use the court’s ruling as precedent to address broader cybersecurity protocol failures.