Court Rules FTC Can Regulate Corporate Cybersecurity

The Third Circuit Court of Appeals has ruled that an FTC lawsuit accusing Wyndham Worldwide Corp. of failing to properly safeguard consumers’ information can proceed. The suit concerns three breaches in in which hackers broke into Wyndham’s computer system and stole credit card and other details from more than 619,000 consumers, leading to over $10.6 million in fraudulent charges. “We believe the facts will show the FTC’s allegations are unfounded,” said a Wyndham spokesman.