The New Jersey District Court has stayed and referred to mediation the ongoing action by the Federal Trade Commission (FTC) against Wyndham Hotels. The action relates to alleged improper data security practices as a result of multiple data breaches and lapses in information security that the company and its affiliates suffered from 2008-10. While the mediation could resolve the FTC’s specific action against Wyndham, it would leave open some of the broader questions regarding the FTC’s authority to regulate data security practices that Wyndham has so vigorously challenged.

FTC v Wyndham case report