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November 21, 2017
Posted in  Privacy and Data Security

Unfair and Deceptive Trade Practices Claims in Data-Breach Lawsuits

Section 5 of the Federal Trade Commission Act provides a powerful tool for the federal government to regulate companies’ data-security practices. Rather than adopt specific data-security standards, the FTC often uses Section 5’s flexible and open-ended concepts of unfairness and deception to bring enforcement actions against companies for data-security failures.  […]

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November 14, 2017
Posted in  75-1.1 Exemptions

Internal Business Disputes, Third Parties, and Section 75-1.1

The reach of N.C. Gen. Stat § 75-1.1 extends to conduct “in or affecting commerce.” Although this phrasing seems broad, courts interpreted it to exempt several types of conduct from the statute’s purview.  One recognized exemption is for internal business disputes: that is, conduct among members of the same business. A recent decision by the […]

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October 24, 2017
Posted in  Substantial Aggravating Circumstances

The North Carolina Business Court Explores the Boundaries of “Substantial Aggravating Circumstances”

Courts have long recognized limitations on claims brought under N.C. Gen. Stat. § 75-1.1 in conjunction with alleged breaches of contract. Although the North Carolina Supreme Court has never formally recognized a restriction, state and federal courts alike have determined that a breach of contract does not give rise to […]

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October 17, 2017
Posted in  Privacy and Data Security

The Government Can Sue for a Privacy or Data-Security Violation. What Are the Limits of that Government Power?

Consumers and businesses aren’t the only sources of potential privacy and data-security litigation. Today’s post looks at another important source: the Federal Trade Commission and state consumer-protection regulators. In many cases, government enforcers don’t have express authority to sue for “privacy” or “data security” violations. Instead, the FTC often sues based […]

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