U.S. Chamber: Court ruling on FTC cyber enforcement encourages 'ad hoc' litigation

The recent U.S. appeals court decision upholding the Federal Trade Commission's cybersecurity enforcement authority will encourage excessive litigation and overzealous regulation, according to the U.S. Chamber of Commerce, which filed a brief in the case.

A three-judge panel of the Third Circuit Court of Appeals in Philadelphia on Aug. 24 unanimously affirmed the FTC's authority to enforce cybersecurity standards for companies that handle consumer data, using the commission's unfair or deceptive practices standards under the FTC Act.

The appeals-court...