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U.S. FTC can sue hotel group over poor data security, court rules

08
Apr
2014

A U.S. court ruled on Monday that the Federal Trade Commission can proceed with a lawsuit against hotel group Wyndham Worldwide Corp for allegedly failing to safeguard consumers’ personal information. Judge Esther Salas, of the U.S. District Court for the District of New Jersey, disagreed and ruled that the FTC should be allowed to proceed with its case. “We continue to believe the FTC lacks the authority to pursue this type of case against American businesses, and has failed to publish any regulations that would give such businesses fair notice of any proposed standards for data security,” the company said. FTC Chairwoman Edith Ramirez said she was “pleased that the court has recognized the FTC’s authority to hold companies accountable for safeguarding consumer data.

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