An appellate court ruling Monday affirmed the Federal Trade Commission’s role in policing the cybersecurity of commercial companies, a role some have argued is an overreach of the regulator’s authority.
One such claim came from Wyndham Hotels and Resorts, which filed the appeal earlier this year contesting a FTC suit that claimed the hotel chain misrepresented its ability to keep customer data secure. Monday’s ruling upheld the FTC’s assertion that it had standing to bring a case against Wyndham.
According to the FTC, Wyndham hotels maintained insufficient cybersecurity measures, leading to three significant breaches in 2008 and 2009 attributed to Russian hackers. The result was some $10.6 million in fraudulent charges on stolen customer accounts.