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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