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We reported in September that LabMD (a laboratory services company) became the second company (after Wyndham Hotels & Resorts) to challenge the Federal Trade Commission’s authority to regulate cybersecurity, when it raised this issue in response to an administrative complaint filed by the Commission. This month, LabMD switched to offense, filing a complaint in the U.S. District Court for the District of Columbia seeking to enjoin the FTC’s administrative action on various constitutional statutory grounds. Also this month, the judge in the Wyndham case signaled that she is likely to reject Wyndham’s challenge. So companies that want to see the FTC brought down a peg will now be pinning their hopes on LabMD’s suit.
