Insights
Marc Perry and Abe Rein Author Article Examining Importance of Cybersecurity Vigilance in the Hospitality Industry for Law360
On April 9, Law360 featured an article by Marc H. Perry and Abraham J. Rein that provided an analysis of the case FTC vs. Wyndham, and how developments in the case may impact the hospitality industry.
The case involves a complaint by the Federal Trade Commission (FTC) regarding three intrusions suffered by Wyndham (and the Wyndham-branded hotels to which the Wyndham name is licensed) to their computer networks between April 2008 and January 2010.
The article notes, "a key question at issue in the case: is the [hospitality] industry on proper notice of the particular cybersecurity standards that the FTC considers sufficient, such that corporations may be subject to FTC sanctions for non-compliance?"
It goes on to say:
"This litigation places the hospitality industry on notice that an investment in uncovering and filling cybersecurity gaps now may prevent FTC sanctions downstream. To this end, monitoring the FTC’s complaints and working with IT staff in making judgments about whether the organization’s data security practices sufficiently cover those gaps about which the FTC is complaining is important. This will require attention to detail, an excellent IT staff, and inside and/or outside counsel with a strong working knowledge of cybersecurity principals, both legal and technical."