FOR IMMEDIATE RELEASE
September 6, 2013
Cancer Detection Business Strikes Back Against Federal Trade Commission’s Arbitrary Enforcement
Cause of Action Challenges FTC Overreach, Claims It Lacks Regulatory Authority
WASHINGTON – LabMD, a small cancer detection facility in Atlanta, Ga., has retained government accountability group Cause of Action (CoA) in order to challenge an aggressive and arbitrary enforcement action brought by the Federal Trade Commission (FTC). LabMD was targeted by the federal agency in what the company calls “an ongoing witch hunt against private businesses.”
The FTC issued a complaint against LabMD in August, alleging violations of Section 5 of the Federal Trade Commission Act based, in part, on allegations that a third party was able to obtain data from LabMD’s computers through the peer-to-peer (P2P) file sharing program LimeWire.
“The FTC’s targeting of LabMD is the most recent example of a federal agency abusing its authority and acting outside of its power in order to punish American job creators,” said Executive Director of CoA, Dan Epstein. “The FTC has scapegoated a company whose aim is to save lives.”
Cause of Action is representing LabMD in legal proceedings before the FTC in which LabMD will vigorously respond to the FTC’s complaint and address whether the FTC has authority under Section 5 of the Federal Trade Commission Act to bring its enforcement action.
As part of their efforts to educate the public on the dangers posed by the FTC’s actions, CoA and TechFreedom are co-sponsoring a Thursday, September 12, discussion of the FTC and data security issues to be held in Washington, DC and streamed live online. More information can be found here.
About Cause of Action:
Cause of Action is a nonprofit, nonpartisan organization that uses investigative, legal, and communications tools to educate the public on how government accountability and transparency protects taxpayer interests and economic opportunity. For more information, visit www.causeofaction.org.
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