Episode 221: Daugherty’s Revenge

The 11th Circuit’s LabMD decision is a dish served cold for Michael Daugherty, the CEO of the defunct company. The decision overturns decades of FTC jurisdiction, acquired over the years by a kind of bureaucratic adverse possession. Thanks to the LabMD opinion, practically all the FTC’s privacy and security consent decrees are at risk of being at least partly unenforceable — and if the dictum holds, the FTC may have to show that everything it views as an “unfair” lack of security is actually a negligent security practice.


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