Potential Legal Liability • FTC Act § 5 Compliance • Section five of the Federal Trade Commission Act (FTCA) applies to privacy law in that it addresses unfair and deceptive trade practices. The operating language states that “[u] nfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful. ” 15 U.S.C. § 45 (2012). • This statute has been used to hold companies liable for failing to provide the level of cybersecurity and data protection that they advertised. • 2021: FTC rescinded 2015 policy limiting FTCA enforcement ability.
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