In the world of background check litigation under the Fair Credit Reporting Act (“FCRA”), one theory that plaintiffs frequently assert is that if the background check disclosure provided by the employer violates the FCRA, then the authorization based on that disclosure is also necessarily inadequate. Under the FCRA, an employer desiring to obtain a criminal
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FTC Submits Annual Budget Request To Congress
The Federal Trade Commission (FTC) submitted its Fiscal Year 2018 budget request to Congress, in support of the President’s FY 2018 budget for the federal government. The budget request also includes the FY 2018 Budget Overview Statement, Performance Plan for FY 2017 and FY 2018, and Performance Report for FY 2016, as required under the …
Acting FTC Chair Supports FCC Proposed Rulemaking; Says Will Restore the FTC’s Enforcement Abilities
The Acting Chairman of the Federal Trade Commission (FTC), Maureen Ohlhausen, has issued a statement that endorses a recent proposed rulemaking by the Federal Communications Commission (FCC). The FCC rulemaking, proposed on May 18, is titled “Restoring Internet Freedom” and seeks to restore a “light-touch regulatory framework” by reversing a 2015 FCC decision that…
NY AG Settles with IoT Company over Security Practices
On May 22, 2017, New York Attorney General Eric Schneiderman announced a settlement with Safetech Products LLC (“Safetech”) over allegations that the Internet of Things (IoT) company sold insecure wireless door and padlocks. According to the Attorney General, the settlement marks the first time a state Attorneys General has taken legal action against a wireless…
State Attorneys General Reach $18.5M Agreement with Target Over 2013 Data Breach
On May 23, state attorneys general from 47 states and the District of Columbia announced a settlement agreement with Target Corporation to resolve the states’ investigation into the company’s 2013 data breach. Under the terms of the Assurance of Voluntary Compliance (“AVC”), Target will pay $18.5 million to the states – the largest multistate data…
TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision
While the world eagerly awaits the D.C. Circuit’s forthcoming ruling on the proper interpretation of the Telephone Consumer Protection Act (TCPA), a recent federal court ruling imposing tens of millions of dollars of liability is a reminder of the risks associated with outbound calling activities and of the stakes at play in the ACA International…
Pennsylvania to “Ban the Box” by Executive Order
Pennsylvania Governor Tom Wolf announced this month that he will “ban the box” for some applicants applying for certain state government positions, and that he will do so by executive order, which would take effect as of July 1, 2017. The executive order would affect hiring in nearly 70,000 state jobs within the executive branch…
FTC and Partners Announce Operation Tech Trap to Target Tech Support Scammers
The Federal Trade Commission recently announced the creation of Operation Tech Trap, a new joint effort among national and international partners to combat tech support scams that dupe consumers into believing their computers contain harmful computer viruses and malware and then trick these consumers into paying hundreds of dollars for unnecessary repairs to “fix” their…
As CFPB Faces Uncertainty, State Regulators Fill Gap
Many predicted that newly-elected President Donald Trump would remove Richard Cordray, Director of the Consumer Financial Protection Bureau, upon taking office. Cordray remains the head of the CFPB, but uncertainty still looms at the agency. President Trump has characterized the Dodd-Frank Wall Street Reform and Consumer Protection Act, the legislation which created the CFPB, as…
Class Action Filed Against Chipotle for Data Security Breach Involving Payment Processing System
On May 4, Bellwether Community Credit Union filed a class action suit on behalf of a proposed class of financial institutions in Colorado federal court against Chipotle Mexican Grill, Inc., claiming that the chain’s recently announced data breach caused significant financial harm to the credit union. Bellwether’s complaint alleges that Chipotle’s purportedly lax …