On June 26, 2012, the Federal Trade Commission announced that it had filed suit against Wyndham Worldwide Corporation and three of its subsidiaries (“Wyndham”) alleging failures to maintain reasonable security that led to three separate data breaches involving hackers accessing sensitive consumer data. The FTC’s complaint claims that Wyndham violated the FTC Act by posting misleading representations on Wyndham websites regarding how the company safeguarded customer information, and by failing to provide reasonable security for personal information it collected. According to the complaint, these alleged security failures led to unauthorized exposure of Wyndham’s customers’ personal information and caused financial injury to consumers and businesses through fraudulent charges and other costs.
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