LabMD Files Court Complaint Against FTC Over Data Security Unfairness Enforcement

In a Nov. 14 complaint, LabMD Inc. became the second company to challenge in federal court the Federal Trade Commission’s use of its unfairness authority to take enforcement action against allegedly lax data security practices (LabMD, Inc. v. FTC).

The complaint filed in the U.S. District Court for the District of Columbia said the commission is engaged in an “extralegal abuse of government power” through its use of the unfairness prong of Section 5 of the FTC Act, 15 U.S.C. § 45, in an administrative action against LabMD over a data breach.

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