Wyndham hotels used poor cybersecurity that made it easier for hackers to steal customer information, costing them millions of dollars. Wyndham's website claimed the company used good cybersecurity. The FTC sued for deceptive trade practices for failure to maintain proper computer security. Wyndham appealed. The court of appeals held that:
A) poor cybersecurity is not a deceptive trade practice, so is not under FTC jurisdiction.
B) poor cybersecurity is in the eye of the beholder as many companies are hacked; Wyndham is another victim that should not be singled out by the FTC.
C) consumers who suffered losses could bring breach of contract suit against Wyndham, negating the need for such FTC action.
D) Wyndham promised good cybersecurity but did not deliver it, so the FTC had grounds to act for deceptive trade practices.
E) none of the other choices are correct.

Question

Wyndham hotels used poor cybersecurity that made it easier for hackers to steal customer information, costing them millions of dollars. Wyndham's website claimed the company used good cybersecurity. The FTC sued for deceptive trade practices for failure to maintain proper computer security. Wyndham appealed. The court of appeals held that:
A) ​poor cybersecurity is not a deceptive trade practice, so is not under FTC jurisdiction.
B) ​poor cybersecurity is in the eye of the beholder as many companies are hacked; Wyndham is another victim that should not be singled out by the FTC.
C) ​consumers who suffered losses could bring breach of contract suit against Wyndham, negating the need for such FTC action.
D) ​Wyndham promised good cybersecurity but did not deliver it, so the FTC had grounds to act for deceptive trade practices.
E) ​none of the other choices are correct.

Quizplus · Accepted Answer

Wyndham claimed on their website that they used good cybersecurity, but failed to deliver on that promise. The FTC sued them for deceptive trade practices, and the court of appeals held that the FTC had grounds to act based on this deception. Poor cybersecurity is not necessarily a deceptive trade practice in and of itself, but Wyndham's specific actions constituted deceptive conduct. The other choices are incorrect because they do not accurately reflect the court's ruling or the situation at hand.

Wyndham Hotels Used Poor Cybersecurity That Made It Easier for Hackers