FTC Settles With Computer Company Over Data Breach Charges

Kelley Drye Client Advisory

On February 5, 2009, the FTC announced yet another settlement with a company over its alleged lax data security business practices (in connection with the hacking of its website). Specifically, the FTC announced that it settled charges with Genica Corp. and Compgeeks​.com over charges that the companies violated Section 5 of the FTC Act by failing to provide reasonable security to protect sensitive customer data. The case serves as a reminder to businesses that information security, and making sure a company’s conduct is consistent with its privacy policy, remain key priorities for regulators.

This Client Advisory, prepared by Kelley Drye’s Privacy and Information Security practice group, provides a detailed summary of the case.