Reversing the findings of an Administrative Law Judge, the FTC has found that LabMD, Inc., a former provider of clinical laboratory testing services to physicians, violated Section 5 of the FTC Act by failing to maintain proper data security practices. The final order, issued on July 29, is notable in its position suggesting that
August 2016
New York AG Announces Data Breach Settlement with EZcontactsUSA
On August 5, the New York Attorney General announced a settlement with Provision Supply, LLC, d/b/a EZcontactsUSA.com over a data breach resulting in the potential exposure of over 25,000 credit card numbers and other cardholder data. Provision Supply, the operator of EZContactsUSA.com, a Brooklyn-based e-tailer that sells contact lenses and eyewear, agreed to pay $100,000 …
TCPA Class Action Dismissed Based on Spokeo
On August 1, a New Jersey federal judge issued a one-page order dismissing a Telephone Consumer Protection Act class action based on the Supreme Court’s recent ruling in Spokeo, Inc. v. Robins.
In Susinno v. Work Out World, Inc., Plaintiff Noreen Susinno had a prior gym membership with Work Out World (“WOW”). According …
Court Dismisses TCPA Claim Because Text Messaging App Does Not “Make” Calls
In Cour v. Life360, Inc., the United States District Court for the Northern District of California granted a defendant’s motion to dismiss a claim under the Telephone Consumer Protection Act, finding that the defendant’s system for sending text messages did not constitute “making” a call under the statute. In reaching …
South Carolina Governor Signs Money Transmitter Law
On June 9, South Carolina Governor Nikki Haley signed into law the South Carolina Anti-Money Laundering Act. The South Carolina AML Act, among other requirements, imposes a licensing requirement for persons and entities engaged in money transmission in the state. South Carolina is now the 49th state to implement a law regulating money …
Ninth Circuit Rules Every Debt Collector Must Send Verification Notice
In a case of first impression, the U.S. Court of Appeals for the Ninth Circuit held in July that all debt collectors must send debtors a verification notice. “In other words, if there are multiple debt collectors that try to collect a debt, each one must send the required notice after its first communication with …
Urban Outfitters, Anthropologie Dodge Putative ZIP Code Class Action Under Spokeo
The Court of Appeals for the District of Columbia shot down a putative class action brought against Urban Outfitters, Inc., and Anthropologie, Inc., which had alleged that the companies violated D.C. consumer protection statutes by collecting customer ZIP code information during in-store checkout. The July 26 ruling remanded the suit for dismissal, and held that …