Tyler Newby, a litigation partner in Fenwick’s Privacy and Information Security Group, is quoted in a Law360 article titled “Privacy Cases to Watch in 2013.”
The article discusses privacy cases expected to make the biggest impact in 2013, including the upcoming case between Wyndham Hotels and Resorts LLC and the Federal Trade Commission. The case involves charges filed by the FTC against Wyndham for not taking proper data security measures in the wake of a hacking incident in 2012. The data breach of the hotel’s system led to millions of dollars stolen using customers’ personal information.
Newby says, "It was an aggressive action on behalf of the FTC to bring an action against a company that was the victim of a hacking incident.”
If the hotel company can get the court to rule against the agency, it could tarnish the FTC’s ability to force companies to adapt certain data security standards. The court is currently considering Wyndham Hotels’ request to dismiss the charges.
Newby is also quoted regarding expected litigation over whether online credit card transactions are exempt from the ban on collecting personal information, such as ZIP codes.
“It seems to me that if you’re running an online business and processing transactions, you have to have information that allows you to ship the goods and to help deter fraud. It’s very different from the brick-and-mortar environment,” Newby said.