Eleventh Circuit Vacates FTC Order against LabMD as Lacking Specificity Necessary to Protect Due Process Rights

The Court of Appeals for the Eleventh Circuit has overturned an FTC cease and desist order enjoining LabMD to install a reasonable data-security program, issued in response to the disclosure of a single computer file containing personal information regarding 9,300 customers. Agreeing with arguments from the now-defunct LabMD, the court determined “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)” of the Federal Trade Commission Act (15 U.S.C. §…
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