Flayton Electronics Essay

1229 Words5 Pages
Flayton Electronics learns that the security of its customer data has been compromised and faces tough decisions about what to do next. How should Flayton Electronics responded to this crisis. The purpose this case study is to 1) Evaluate the obligation Flayton Electronics has to it’s customers to protect their private data; 2) If you were CEO, develop the communication strategy you would take to notify the customers of the potential security breach; 3) Determine the extent to which Flayton Electronics’ brand was damaged by the Security breach and 4) Recommend procedures that Flayton Electronics should take to prevent future security breaches. 1. Evaluate the obligation Flayton Electronics has to it’s customers to protect their private data. Flayton Electronics does have a moral and legal obligation to its customers to protect their private data. The Federal Trade Commission Act, prohibits deceptive and unfair trade practices. Per the FTC Act, businesses must handle consumer information in a way that is consistent with their promises to their customers such as what they say in their online privacy policy, and avoid data security practices that create an unreasonable risk of harm to consumer data. There are other federal laws that a company may have to be in compliance with may affect there data security. Identity theft and data security have increased, many states have passed laws or regulations to protect their citizens. In addition to complying with federal laws, businesses should look to state laws to make sure they are in compliance (Kappler 2007). The Federal Trade Commission Act has tried to develop a single basic standard for data security that strikes the balance between providing concrete guidance, and allowing flexibility for different businesses’ needs. The standard is straightforward: Companies must maintain reasonable procedures to protect

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