ARTICLE · 27 MAY 2022

FTC Guidance Creates New Breach Notification Obligations

Alston & Bird

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On May 20, 2022, the Federal Trade Commission (FTC) issued guidance that uses Section 5 of the FTC Act to create new breach notification obligations.

United StatesConsumer Protection

Alexander G. Brown

Kathleen Benway

Executive Summary

The Federal Trade Commission has issued new guidance under which consumers or companies should be notified of data breaches "regardless of whether a breach notification law applies." Our Consumer Protection/FTC Team analyzes the potential for Section 5 liability under a broader, harm-based standard for breach notification obligations.

Strong security and breach detection are not enough – timely, accurate, and actionable security disclosures are also necessary
The FTC considers notification a required remedial measure when foreseeable risks of harm are present
Under this guidance, the FTC may be moving closer to a standard resembling the EU's General Data Protection Regulation

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