July 5, 2022

Volume XII, Number 186

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FTC Appeals Dismissal of Data Security Complaint Against LabMD

Last Wednesday, the FTC took the next step in its ongoing Section 5 enforcement proceedings against LabMD, filing a formal notice seeking an appeal of Administrative Law Judge Chappell’s initial decision before the full Commission.  Judge Chappell’s initial decision, announced on November 13, dismissed the FTC’s complaint against LabMD, finding that the FTC failed to carry its burden of demonstrating a “likely substantial injury” resulting from LabMD’s allegedly “unfair” data security practices.  The notice of appeal states that the FTC “intends to preserve and advance all arguments presented” before Judge Chappell in prior proceedings.  Since the Commission reviews Judge Chappell’s initial decision, including all findings of fact and legal conclusions, on a de novo basis, the FTC’s ruling could be markedly different than the initial decision by Judge Chappell.  The appeal comes only a few days after LabMD filed a separate lawsuit against the individual FTC attorneys involved in the case, alleging violations of LabMD’s constitutional rights in connection with the FTC’s Section 5 enforcement action.

© 2022 Covington & Burling LLPNational Law Review, Volume V, Number 336
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About this Author

Caleb Skeath, data and cybersecurity lawyer, Covington
Associate

Caleb Skeath advises clients on a broad range of cybersecurity and privacy issues, including cybersecurity incident response, cybersecurity and privacy compliance obligations, internal investigations, regulatory inquiries, and defending against class-action litigation.

Mr. Skeath specializes in assisting clients in responding to a wide variety of cybersecurity incidents, ranging from advanced persistent threats to theft or misuse of personal information or attacks utilizing destructive malware. Such assistance may include protecting the response to, and...

202.662.5119
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