Privacy

Appeals court can review ruling on FTC authority in Wyndham suit

July 1, 2014

After reviewing Wyndham Worldwide Corp.'s latest complaint regarding the Federal Trade Commission's authority, a U.S. District Court in New Jersey has given the go-ahead to an appeals court to review the district court's earlier denial of Wyndham's motion to dismiss, according to court documents provided by Bloomberg BNA.

A data breach that led to fraudulent charges in excess of $10 million prompted the FTC to sue Wyndham for failing to secure guests' financial data.

The hotel chain challenged the FTC's authority and in April District court Judge Esther Salas denied the company's request for dismissal.

However, Monday's ruling means that the Court of Appeals for the Third Circuit can review the denial of dismissal decision, which was seen as confirming that the FTC's actions fall within the parameters of authority established by Section 5 of the Federal Trade Commission Act.

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