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Wyndham Case May Mean Uncertainty for New Payment Providers

Posted on September 18, 2015 by Dissent

Kery Murakami reports:

Wyndham Hotels & Resorts LLC’s appeal of a Federal Trade Commission (FTC) complaint against the hotel chain for alleged lax data protection practices is being watched closely by banking officials who say it could lead to uncertainty over cybersecurity regulations for emerging technologies such as mobile wallets and digital payments.

The case could also lead to uncertainty for banks and other financial institutions should Congress apply a proposed national data security standard to banks, said Scott Talbott, senior vice president of government affairs for the Electronic Transactions Association. Banks would be exempted from any new national standard because they are currently subject to Gramm-Leach-Bliley data security and notification requirements. But retailers are pushing for the removal of the exemption, potentially making them subject to a national standard that would be enforced by the FTC.

 

Read more on BNA.


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