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Wyndham Amici Brief 0

Wyndham Amici Brief 0

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Published by Bennet Kelley
Wyndam Amici Brief
Wyndam Amici Brief

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Published by: Bennet Kelley on Jul 17, 2013
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900200.00001/50491486v.4
 Stephen M. Orlofsky, Esquire New Jersey Resident Partner Rachel J. Gallagher, EsquireBLANK ROME LLP301 Carnegie Center, 3rd Floor Princeton, NJ 08540Telephone: (609) 750-7700Fax: (609) 750-7701Orlofsky@BlankRome.com RGallagher@BlankRome.com 
 Attorneys for Amici Curiae TechFreedom, International Center for Law and Economics & Consumer Protection
Scholars Justin (“Gus”) Hurwitz, Esquire, Todd J. Zywicki, Esquire,
and Paul H. Rubin, Ph.D
IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF NEW JERSEY
F
EDERAL
T
RADE
C
OMMISSION
,Plaintiff,
V
.W
YNDHAM
W
ORLDWIDE
C
ORPORATION
,
ET AL
.,Defendants.Civil Action No.2:13-cv-01887(ES)(SCM)
A
MICI
C
URIAE
B
RIEF
O
F
T
ECH
F
REEDOM
,
 
I
NTERNATIONAL
C
ENTER 
F
OR 
L
AW
A
ND
E
CONOMICS
&
 
C
ONSUMER 
P
ROTECTION
S
CHOLARS
 
Return Date: June 17, 2013
OF COUNSEL & ON THE BRIEF
Berin Szoka, EsquireTechFreedom
Counsel for TechFreedom
 Geoffrey A. Manne, EsquireInternational Center for Law andEconomics
Counsel for the International Center for  Law and Economics
 
 i
900200.00001/50491486v.4
 
TABLE OF CONTENTS
Page Nos.
 Interest of 
 Amici Curiae
............................................................................................. 1Introduction ................................................................................................................ 2Argument.................................................................................................................... 6I. The Section 5 Unfairness Claim is Unconstitutionally Vague as Applied to
Wyndham’s Data Security Practices.
.............................................................. 6
 
II. This Court Should Establish Pleading Standards for Data Security CasesUnder Section 5. ............................................................................................ 12
 
A. Count II Fails To Allege Facts Supporting Each Statutorily RequiredElement Of An Unfairness Claim. ................................................................. 13
 
1. Substantial Injury ...................................................................... 14
 
2. Reasonably Avoidable .............................................................. 17
 
3. Countervailing Benefits ............................................................ 18
 
B. Deception Claims Should Be Held To The HeightenedParticularity Standard Of 9(b). ...................................................................... 20Conclusion ............................................................................................................... 21
 
 i
900200.00001/50491486v.4
 
TABLE OF AUTHORITIESPage Nos.
 
C
ASES
 
 Altria Group, Inc. v. Good 
,555 U.S. 70 (2008) ................................................................................................ 8
 Ashcroft v. Iqbal 
,556 U.S. 662 (2009) .............................................................12, 13, 14, 17, 18,19
 Bell Atlantic Corp. v. Twombly
,550 U.S. 544 (2007) ...................................................................................... 12, 13
 FCC v. Fox Television Stations, Inc.
,132 S. Ct. 2307 (2012) .................................................................................... 7,11
 FTC v. Ivy Capital, Inc.
,2011 WL 2118626 (D. Nev. May 25, 2011)................................................. 13,20
 FTC v. Lights of Am., Inc.
,760 F.Supp.2d 848 (C.D. Cal. 2010) ............................................................ 13,20
 FTC v. Sperry & Hutchinson Co
.,405 U.S. 233 (1972) .............................................................................................. 2
Grayned v. City of Rockford 
,408 U.S. 104 (1972) .......................................................................................... 7,9
 Hammond v. The Bank of New York Mellon Corp.
,2010 WL 2643307 (S.D.N.Y. June 25, 2010) .................................................... 16
 In the Matter of Google Inc.
,FTC File Number 111-0163, Jan. 3 .................................................................... 12
 In the Matter of Google Inc
.,FTC No. C-4336 ................................................................................................. 10
 In re Burlington Coat Factory Sec. Litig 
.,114 F.3d 1410 (3d Cir. 1997) ............................................................................. 20
 In re Cliffdale Associates, Inc.
,103 F.T.C. 110 (1984) .................................................................................. 14,20

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