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In a victory for the Federal Trade Commission, a federal judge declined to dismiss the agency's data security case against Wydham Worldwide Hotels, allowing it to move forward.
The case, in the U.S. District Court in New Jersey, is being closely watched as a test for how much authority the FTC has in bringing cases against companies the agency deems have inadequate data security standards.
So far, the agency has brought more than 50 data security cases under its unfair and deceptive authority even as it advocates that Congress pass legislation giving the agency more authority to set data security standards.
In January 2012, the FTC filed suit against Wyndham, alleging that its faulty data security practices that allowed hackers to break into the hotel's computer system were an "unfair" trade practice resulting in fraudulent charges on consumers' accounts totaling $10.6