On March 7, 2014, U.S. District Judge Esther Salas in New Jersey
issued a much anticipated decision rejecting a direct challenge to
the Federal Trade Commission's authority to
police corporate cybersecurity practices. Seeking to dismiss an FTC
enforcement action, the hotel chain Wyndham Worldwide Corp., which was supported by
many prominent business groups, had argued the commission
didn't have the power to regulate corporate data-security
practices. While still subject to appellate review and not binding
on other federal courts, Judge Salas' decision paves the way
for the FTC to seize the mantel as the top federal enforcement
authority in the area of cybersecurity.
It can be argued the growing influence of the FTC in the area of
cybersecurity is the result of inaction rather than a deliberate
plan to expand the reach of the commission. Despite a clear need,
Congress has been unable to pass significant cybersecurity
legislation, let alone a comprehensive bill
