FTC enforcement actions against HIPAA covered entities

The Federal Trade Commission (FTC) is most commonly associated with consumer protection actions. In this capacity, it regulates unfair and deceptive practices affecting consumers, including deceptive advertising, spam emails, and unfair debt collection practices. Over the years, the FTC's autho...

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Bibliographic Details
Published in:Administrative & Regulatory Law News 2014-07, Vol.39 (4), p.9
Main Author: Hudson, Stephanie E
Format: Article
Language:English
Subjects:
Collection (Accounting)
Consent
Consumer protection
Consumers
Credit collections
Data integrity
Data security
Failure
Fair Credit Reporting Act 1970-US
False advertising
Financial Services Modernization Act 1999-US
Health care
Health insurance
Health Insurance Portability & Accountability Act 1996-US
Social security numbers
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Summary:The Federal Trade Commission (FTC) is most commonly associated with consumer protection actions. In this capacity, it regulates unfair and deceptive practices affecting consumers, including deceptive advertising, spam emails, and unfair debt collection practices. Over the years, the FTC's authority to regulate unfair and deceptive practices has grown to encompass data security practices and standards. The FTC uses its broad regulatory authority under 15 U.S.C. Section 45, and in particular Section 5, to bring enforcement actions against companies experiencing data breaches. This article focuses on the seminal case In the Matter of LabMD Inc, the FTC's first major enforcement action against an entity principally subject to HIPAA and HITECH regulations. LabMD is the first entity primarily regulated by HIPAA and HITECH to come under fire through the FTC's new data security enforcement scheme. Logically, then, LabMD routinely interacts with and manages sensitive information deemed "protected health information" under HIPAA and HITECH.
ISSN:1544-1547
2163-1743