Governance & Risk Management , Standards, Regulations & Compliance
Video Interview: LabMD's Mike Daugherty on Battle With FTCExplains Why He Believes Agency Overstepping Its Authority
Mike Daugherty, the president and CEO of LabMD who is fighting a legal battle with the Federal Trade Commission over two security incidents in 2008 and 2012, contends the agency is overstepping its regulatory authority. And he warns bankers and merchants to beware because new FTC probes into PCI compliance and EMV deployment could be on the way.
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"You have a whole bunch of people in Congress who want the administrative state and the regulators to be seen as saviors," Daugherty says in this video interview with Information Security Media Group. "The problem is, we're at a tipping point, in finance, in technology, in medicine, because we're being regulated by lawyers, not people who are really educated in the areas that they're regulating."
In this interview at ISMG's recent Washington Fraud and Breach Prevention Summit, Daugherty also discusses:
- How he expects the FTC actions related to cybersecurity incidents to soon impact every industry;
- How he believes LabMD's case changed the way the FTC investigates security incidents; and
- Why he contends that more oversight from the FTC will not enhance cybersecurity;
Atlanta-based LabMD, which has ceased operations, was a clinical and anatomic medical laboratory that specialized in analysis and diagnosis of blood, urine, and tissue specimens for cancers, micro-organisms and tumor markers. Daugherty founded LabMD in 1996 after 14 years in surgical device sales with U.S. Surgical Corp. and Mentor Corp. He is author of a book about the FTC's investigation of his firm: "The Devil Inside the Beltway: The Shocking Expose of the U.S. Government's Surveillance and Overreach into Cybersecurity, Medicine and Small Business."