Hotel chain says FTC has no right to police its data security methods

Wyndham Worldwide has requested the lawsuit be thrown out

Given the conflicting and slipshod ways cybersecurity is implemented by companies, you might think federal intervention on the matter would be appreciated. But hotelier Wyndham Worldwide was distinctly lacking in gratitude when the Federal Trade Commission filed administrative action against them in June of 2012 for their failure to secure a data breach.

The suit alleges that the Wyndham’s policies, including its password protection and network configuration methods increased the vulnerability of systems and allowed hackers to access the credit card information of its customers. As a result of the breach, Russian hackers were able to make millions of dollars in fraudulent charges between 2008 and 2010.

Executive Editor

author image

Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.