The Court of Appeals for the Eleventh Circuit has vacated the Federal Trade Commission’s order:
This is an enforcement action brought by the Federal Trade Commission (“FTC” or “Commission”) against LabMD, Inc., alleging that LabMD’s data- security program was inadequate and thus constituted an “unfair act or practice” under Section 5(a) of the Federal Trade Commission Act (the “FTC Act” or “Act”), 15 U.S.C. § 45(a).1 Following a trial before an administrative law judge (“ALJ”), the Commission issued a cease and desist order directing LabMD to create and implement a variety of protective measures. LabMD petitions this Court to vacate the order, arguing that the order is unenforceable because it does not direct LabMD to cease committing an unfair act or practice within the meaning of Section 5(a). We agree and accordingly vacate the order.
I haven’t had time to read it yet, but this is huge news. Here’s the opinion:
labMD-ca11-20180606