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‘Inconsistent’ Federal Regulations Put Innovative Cancer Lab Out Of Business

Federal Trade Commission (FTC) officials issued “new, confusing and burdensome” data security requirements that are “inconsistent with established federal healthcare law,” according to the non-profit government watchdog Cause of Action Institute.

The group’s comments came in a statement Wednesday after it filed an Amicus Curiae brief on behalf of 10 doctors in a federal court case. The FTC’s regulatory overreach has harmed medical patients’ welfare and put a cancer-detection laboratory out of business, the doctors claimed in their brief.

Cause of Action said the FTC put LabMD – a cancer detection lab – out of business, even though the company complied with HHS’s requirements. (RELATED: Obama Publishes $7.4 BILLION Worth Of Regulations In One Night)

“In its disregard for the rule of law and due process, the FTC destroyed a small cancer detection laboratory whose primary mission was to serve its physician-clients and save lives,” said Cause of Action Institute Assistant Vice President Patrick Massari in the statement.

“The FTC’s ill-conceived foray into medical data security, where it has neither legal authority nor expertise, has endangered patient welfare,” Massari said.

The non-profit described LabMD’s business model as “years ahead of its time” and said “its services benefited doctors, healthcare providers, and patients through more accurate tests, reduced costs, and faster turn-around for patients to receive test results.”

LabMD is fighting the FTC’s order in a case before the U.S. Court of Appeals in the 11th Circuit.

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