Florida Attorney General James Uthmeier issued subpoenas to Contec and Epsimed for selling medical devices that transmit patient data to China without adequate security. The companies are accused of violating Florida's Deceptive and Unfair Trade Practices Act by misrepresenting FDA approval and concealing cybersecurity vulnerabilities. The AG seeks damages, civil penalties, and injunctive relief to protect consumers.
The Attorney General is seeking monetary damages, civil penalties, and injunctive relief to address the alleged violations and prevent future harm.
In-house legal teams should review vendor agreements with manufacturers like Contec and reseller agreements with entities like Epsimed, particularly those involving medical devices or hardware handling sensitive data. Key clauses to scrutinize include data processing and transfer provisions (ensuring compliance with data localization and cross-border restrictions), representations and warranties regarding regulatory approvals (e.g., FDA certification) and cybersecurity standards, security audit rights, mandatory vulnerability disclosure requirements, and termination clauses for misrepresentation or security failures. Updates may be needed to mandate data storage within the U.S., require regular penetration testing, impose clear liability for data breaches, and explicitly prohibit undisclosed data transmission to foreign entities. Customer contracts with healthcare providers should also be assessed for alignment with these heightened security and transparency obligations.
Entity
Contec, Epsimed
Also known as: Contec
Industry
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