What FTC Nominees Are Saying About the Equifax Data Breach
"I don't want to prejudge any existing matter except to say in any major issue involving data breaches, I would expect the commission to be all over it, providing the necessary resources and just being very vigorous," former Paul Weiss partner Joe Simons, the FTC chair nominee, said at his confirmation hearing.
February 14, 2018 at 01:56 PM
4 minute read
A prominent antitrust lawyer in Washington. A consumer advocate versed in financial services, particularly student loans. An in-house corporate attorney at Delta Airlines and a U.S. Senate lawyer.
None of the Trump administration's four nominees to the Federal Trade Commission would arrive at the agency as an expert in cybersecurity, an issue at the top of the agency's priorities. They will be forced to hit the ground running on the agency's investigation into Equifax Inc. over a breach last year that compromised the personal information of 145 million people and brought a flood of litigation against the credit reporting agency.
The Equifax hack hung over Wednesday's U.S. Senate confirmation hearings for the four nominees. While tiptoeing around the Equifax investigation, so as not to “prejudice” or “pre-judge” the matter, the four predicted that data security issues would figure prominently in their FTC tenures.
Joe Simons, the former Paul, Weiss, Rifkind, Wharton & Garrison antitrust partner nominated to lead the FTC, said the agency's handling of data breaches will likely be the most difficult issue for the agency in coming year. His fellow nominees—including former Delta Air Lines executive Christine Wilson and Sen. John Cornyn's chief counsel Noah Phillips—agreed with that sentiment.
Christine Wilson, formerly of Delta Airlines, testifies Wednesday at her confirmation hearing for a seat on the FTC. Credit: Diego M. Radzinschi/ NLJ“They're becoming much more significant, much more frequent,” Simons said of data breaches. “And I think that's a real, real, real serious concern for us and we need to pay close attention to it.”
Later, when asked by Sen. Amy Klobuchar, D-Minnesota, about the Equifax breach, Simons said, “I don't want to prejudge any existing matter except to say in any major issue involving data breaches, I would expect the commission to be all over it, providing the necessary resources and just being very vigorous.”
Klobuchar referenced a letter she recently sent the FTC urging it to broaden its investigation in response to a recent Reuters report that said the Consumer Financial Protection Bureau had pulled back from its own Equifax investigation. The CFPB's interim chief, White House budget director Mick Mulvaney, denied those reports Tuesday, telling a Senate panel that “there has been no change in the position from the previous leadership of the CFPB regarding Equifax.”
Rohit Chopra, a former student loans ombudsman at the CFPB who was nominated for a Democratic seat on the FTC, said the Equifax breach was just one of several serious issues with the credit reporting industry that have recently come to light. Chopra, now a senior fellow at the Consumer Federation of America, noted recent news reports about credit reporting agencies misidentifying consumers as terrorists and drug traffickers.
Equifax drew criticism not only for the breach itself but the weeks-long delay disclosing it to the public. When asked by Sen. Maria Cantwell, D-Washington, about whether the federal government should set more rigorous breach notification guidelines, Simons said, “That's something definitely worth looking at.”
“Sometimes you want to make sure you know what the breach is about and fix it before you announce it,” Simons said. “It depends on the facts of the case and whether the breach notification is appropriate sooner or later.”
Chopra said the Equifax breach was a “wakeup call about the patchwork of state laws” for such notifications.
“I am very interested in working with all of you on data breach and data security issues,” Chopra said, “because it is only going to be more frequent.”
A public notification “several weeks after a major breach of personal data does not sound like it's fast enough,” he added.
Read more:
Joseph Simons of Paul Weiss, Trump's FTC Chair Pick, Reports $1.9M in Partner Share
A Trip to the Soviet Bloc Shaped This FTC Nominee, and Other Disclosure Tidbits
FTC Nominee Christine Wilson Discloses Her In-House Earnings at Delta
Federal Judge Appoints Leadership in Equifax MDL
Paul Weiss Antitrust Leader, Delta Regulatory Counsel Among 4 FTC Nominees
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrump Fires EEOC Commissioners, Kneecapping Democrat-Controlled Civil Rights Agency
Federal Judge Pauses Trump Funding Freeze as Democratic AGs Plan Suit
4 minute readTrending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250