Court Invalidates FTC Enforcement Action Related to Alleged Unfair Data Security Practices

On June 6, the US Court of Appeals for the Eleventh Circuit vacated a cease-and-desist order by the Federal Trade Commission (FTC) issued against LabMD, Inc. (LabMD) arising from an FTC enforcement action alleging that LabMD’s data security program was unreasonable and therefore constituted an unfair act or practice under the section 5 of the FTC Act, 15 U.S.C. § 45(a).