The Federal Trade Commission has reversed a decision by its chief administrative law judge that dismissed the FTC’s data security complaint against now-defunct medical testing laboratory LabMD.
Last year, Chief Administrative Law Judge D. Michael Chappell found that the FTC’s complaint had failed to prove that LabMD’s alleged failure to employ reasonable data security constitutes an unfair trade practice. However, in reversing the judge’s ruling, the FTC concluded that Chappell applied the wrong legal standard for unfairness.
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