LabMD’s challenge to 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 that patient files were made available on “a peer-to-peer file-sharing network.” LabMD sought to have a court declare the FTC didn’t have 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 yet 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 appeal should be heard before administrative proceedings are finalized. The facts supporting LabMD’s constitutional…
