On June 6, 2018, the US Court of Appeals for the Eleventh Circuit ruled in favor of LabMD in the medical testing company’s closely watched challenge to the Federal Trade Commission’s (“FTC”) data security enforcement action. While assuming that the FTC was correct that LabMD’s allegedly unreasonable security practices constituted an unfair act or practice in violation of Section 5 of the Federal Trade Commission Act, the court held that the FTC’s cease-and-desist order lacked adequate specificity and thus was unenforceable.

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