The ongoing legal battle between the Federal Trade Commission (FTC) and MGM Resorts International has escalated, with both parties refusing to back down. Recently, the FTC filed new legal documents in Nevada, seeking information related to a cyberattack incident and its ongoing investigation.
In September 2023, a cybersecurity attack affected guests at MGM Resorts International properties. The FTC initiated a case to obtain details about this incident. However, MGM resisted, arguing that itâs not a financial institution and therefore not within the FTCâs purview. Since then, legal filings have volleyed back and forth, each side striving to achieve its goals.
The Clash
MGMâs stance centers on the belief that the FTC lacks legal justification to intervene. The regulatorâs interest in the matter arose because FTC Chair Lina Khan and a senior aide were staying at an affected property during the cyberattack. An intriguing exchange occurred when Khan was asked to provide her credit card number for review, but no further details were shared. The investigation began shortly after Khanâs request for information.
FTCâs New Filing
The FTCâs latest filing aims to address MGMâs jurisdictional objection. While MGM claims itâs not subject to certain rules, the FTC argues that this reasoning is âmeritless.â The regulator seeks information related to âunfair or deceptive acts or practices violating Section 5 of the FTC Act,â regardless of MGMâs financial status. Whether this argument holds in court remains uncertain, but the FTC emphasizes investigating unfair practices rather than financial operations.
