Any organization that’s been the victim of a cyber attack has ahost of stakeholders to deal with, not the least of which is theapplicable regulatory authority, either state or federal. Anybusinesses hoping that the Federal Trade Commission (FTC) wouldlose some of its authority in pursuing companies following cyberbreaches have been sent a clear signal by an appeals court. It’snot going to happen—at least for now.

In a recent ruling on FTC v. Wyndham Worldwide Corp.,the U.S. Court of Appeals for the Third Circuit also has given thego-ahead on a lawsuit against Wyndham.

Lisa Sotto, an attorney at Hunton & Williams who also chairsthe U.S. Department of Homeland Security’s Data Privacy andIntegrity Advisory Committee explained that “Companies need to have“reasonable safeguards in place.” Since the series of high-profilebreaches starting with the Target breach in 2013, companies have tobe ready and prepared for breaches, she said. “Companies reallyhave awakened from their slumber.”

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].