An investigation by the FTC reveals that Company X stored customer information in a database that used a non-standard, proprietary form of encryption. Unlike industry standard encryption techniques, the database used a simple alphabetic substitution system subject to significant vulnerabilities. Which best describes the likely result of an FTC enforcement action?

		The FTC will win because Company X could likely have avoided the weaknesses by using tried-and-true industry-tested and accepted methods for securing data.
		The FTC will lose if Company X acted promptly to investigate the data breach and fix any vulnerabilities.
		The FTC will lose because Company X encrypted the data and it was not their fault that the encryption method was not a good one.
		The FTC does not have authority to bring an enforcement action against a private company.