LabMD Must Complete Administrative Process Before Taking the FTC to Court LabMD’s challenge to the Federal Trade Commission (FTC) authority over health care data privacy will have to wait. You may recall the FTC investigated LabMD’s data security practices and filed an administrative complaint after it was discovered patient files were made available on “a peer-to-peer file-sharing network.” LabMD sought to have the court declare that the FTC lacked the authority to regulate or enforce health care data privacy. LabMD also asserted that the FTC’s complaint was filed in retaliation for LabMD’s CEO publishing a book about government corruption. The 11th Circuit Court of Appeals has upheld a district court dismissal of LabMD’s claims, saying the FTC hasn’t issued a final determination from which LabMD can appeal. The court explained that it cannot get involved until such final action is taken: “The FTC is best suited to develop the factual record, continue to evaluate its position on the issues, and apply its expertise to complete the proceeding. All of this will allow for more robust appellate review by this Court when the action concludes.” The court also rejected LabMD’s argument that because it claims the FTC actions are unconstitutional, the…
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