FTC issues compliant over lack of information security

The Federal Trade Commission (FTC) released a complaint against LabMD, Inc. The complaint alleging that a lack of information security was an unfair practice under Section 5 of the FTC Act. The complaint stems from two incidents: personal information for approximately 9,300 consumers became available on a peer-to-peer or P2P file sharing network when a billing department manager installed the software on his computer for personal use; and law enforcement agents also found the personal information of hundreds of patients in the hands of identity thieves.

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