LabMD, which used to conduct clinical lab tests before winding down its operations, launched three challenges to the authority of the Federal Trade Commission to police companies’ data security practices ‒ one before the FTC itself, one in the Eleventh Circuit, and one in federal district court in Washington, D.C. All these challenges have run out of gas, at least for the moment. In January, the FTC rejected LabMD’s motion to dismiss the administrative complaint. And last month, the Eleventh Circuit rejected LabMD's petition, ruling that it did not have jurisdiction to hear it since the FTC had not yet issued a cease-and-desist order against the company. A day later, the company voluntarily dismissed its complaint in the D.C. federal court, citing only “procedural” reasons for doing so. Whatever the reason, the benching of LabMD leaves Wyndham Hotels & Resorts as the only other player on the field lined up against the FTC. And in November, the judge hearing that challenge signaled that she is unlikely to dismiss the FTC’s suit against Wyndham. So for now, the Commission appears to be looking at an open goal.
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