Data Breaches Lead to Consumer Class and Enforcement Actions
July 31, 2012 3:37 PM | Posted by
Michael Mallow, Michael Thurman and Ieuan Jolly | Print this page
Companies that experienced data security breaches may have to contend with more than just unhappy consumers and reputational injury. Both the Federal Trade Commission and private plaintiffs' class action lawyers have filed actions against companies after data breaches, claiming that the companies misrepresented the adequacy of their security measures and are liable for violating the terms of their own privacy policies.
In Szpyrka v. LinkedIn Corporation
Similarly, in Federal Trade Commission v. Wyndham Hotels
Although both the LinkedIn
actions included other allegations contending that the defendants' failures to protect the consumer data were separately actionable, in each case the companies' privacy policies provided the basis for the "deception" claims against the defendants.
For further information, see our June 2012 client alert here