FTC says it finds LabMD liable for unfair data security practices

The U.S. Federal Trade Commission said on Friday it had overruled an administrative judge’s dismissal of the commission’s data security case against cancer testing company LabMD. In a statement, the FTC said its unanimous opinion, written by Chairwoman Edith Ramirez, concluded that the administrative judge had applied the wrong legal standard for unfairness. “LabMD’s security practices were unreasonable, lacking even basic precautions to protect the sensitive consumer information maintained on its computer system,” Ramirez said.

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