FTC overrules administrative judge in data-security case

The Federal Trade Commission has unanimously voted to overturn an administrative law judge's dismissal of an enforcement case – against clinical laboratory LabMD – for allegedly having inadequate security measures for protecting the personal information of its customers.

The FTC decision issued Friday said the judge's ruling, which found no evidence of damage from the inadvertent release of patient records, had failed to apply an appropriate legal definition of unfair practices.

In issuing the commission's opinion, FTC Chairwoman Edith...