WASHINGTON, April 7 A U.S. court ruled on Monday
that the Federal Trade Commission can proceed with a lawsuit
against the hotel group Wyndham Worldwide Corp for
allegedly failing to safeguard consumers' personal information.
Wyndham had argued that the commission did not have
jurisdiction to sue over what it saw as lax security leading to
data breaches and asked for the lawsuit to be dismissed.
Judge Esther Salas, of the U.S. District Court for the
District of New Jersey, disagreed and ruled that the FTC should
be allowed to proceed with its case.
The FTC has accused Wyndham of failing to provide adequate
security for its computer system, leading to three data breaches
between April 2008 and January 2010. It says the breaches led to
fraud worth $10.6 million.
FTC Chairwoman Edith Ramirez said that she was "pleased that
the court has recognized the FTC's authority to hold companies
accountable for safeguarding consumer data."
"We look forward to trying this case on the merits," she
Wyndham operates several hotel brands, including the
value-oriented Days Inn and Super 8. It is one of many
organizations to acknowledge in the past several years that it
had been hacked by people seeking either financial gain or
No one at Wyndham Worldwide was immediately available for
The case is Federal Trade Commission v. Wyndham Worldwide
Corporation et al, U.S. District Court for the District of New
Jersey, case no. 13-cv-1887.
(Reporting by Diane Bartz; Editing by Leslie Adler)