FTC Large Enterprise Crackdown

FTC Large Enterprise Crackdown Puts Companies on Notice: eDiscovery Best Practices

Wow, I didn’t know any of this, but Jim Gill of Hanzo did and discusses these FTC large enterprise crackdown and anti-trust activities!

In the article (FTC Large Enterprise Crackdown Highlights Need for Litigation Preparedness, available here), Jim discusses that, last year, the FTC announced they were going to “crackdown on harmful commercial surveillance and lax data security,” and have been pursuing a number of lawsuits as a result.

For example, in October 2022, the FTC took action against online alcohol marketplace Drizly and its CEO James Cory Rellas after a data breach exposed the personal information of 2.5 million consumers. The FTC order requires Drizly to “destroy unnecessary data, restricts the data that the company can collect and retain, and binds Rellas to specific data security requirements for his role in presiding over unlawful business practices.”

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Gerard Stegmaier, a partner at Reed Smith, told Legaltech News, one of the more alarming parts of the FTC’s enforcement actions is that it invokes personal liability against its CEO. While this falls within their authority, they only did so “when it was a fairly clear scheme to defraud consumers.”

Stegmaier continues, “So now the business doesn’t know what the law is; what they do know is that there’s a cop that’s out there stopping and frisking businesses and seeking to hold executives personally responsible. In a way, it gives tremendous clarity—if the [FTC] thinks you broke the law, you should be wary because the full weight of the federal government will come down on you.”

There’s much more, as Jim discusses anti-trust lawsuits filed by the Feds and current investigation of “all four of the big tech giants (Google, Meta, Apple, and Amazon)”. And he provides 5 best practices enterprises can follow when it comes to keeping up with regulatory policy and keeping their data safe! Read Jim’s blog post here to find out about all of that!

So, what do you think? Were you aware of the FTC large enterprise crackdown? You are now! Please share any comments you might have or if you’d like to know more about a particular topic.

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Disclaimer: The views represented herein are exclusively the views of the author, and do not necessarily represent the views held by my employer, my partners or my clients. eDiscovery Today is made available solely for educational purposes to provide general information about general eDiscovery principles and not to provide specific legal advice applicable to any particular circumstance. eDiscovery Today should not be used as a substitute for competent legal advice from a lawyer you have retained and who has agreed to represent you.

One comment

  1. Pure FTC political theatre. Going after the low-hanging fruit. Instead of going after the data brokers who collect details of your mental health needs, packaging that information for resale. Oh, the bullshit news plants we’ll sop up 🤦‍♂️. Real “regulatory policy” and “keeping data safe”? Hysterical 😆

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