It is important for all companies — especially small and midsize companies — to have a basic understanding of what the FTC considers to be reasonable cybersecurity. The FTC is known for being one of the more aggressive regulators that are investigating and enforcing (what it views as) inadequate cybersecurity by companies doing business in the United States. In the watershed case solidifying the FTC’s authority to regulate companies’ cybersecurity under the FTC Act, F.T.C. v. Wyndham Worldwide Corp., the U.S. Third Circuit Court of Appeals looked to resources published on the FTC’s website and found that Wyndham’s cybersecurity was very rudimentary and contravened recommendations in the FTC’s 2007 guidebook, Protecting Personal Information: A Guide for Businesses.
The FTC recently published a couple of helpful resources on its website and companies of all sizes would be well-served to spend some time reviewing the recommendations in these resources:
- Start with Security: A Guide for Business
- Protecting Personal Information: A Guide for Business
- Start with security – and stick with it
- Stick with Security: FTC resources for your business
Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.