The United States Department of Health and Human Services, Office for Civil Rights (“OCR”), has assessed a $5.55 million fine against an Illinois healthcare provider for alleged HIPAA data privacy violations. The settlement is the largest to date between the OCR and any single entity, and is one of several multi-million dollar settlements obtained by
FCC Sets Tight Boundaries for TCPA Government-Backed Loan Exception
As we previously reported, section 301(b) of the Bipartisan Budget Act of 2015 permits an exception to the Telephone Consumer Protection Act of 1991 for calls and text messages “made solely to collect a debt owed to or guaranteed by the United States.” Although the TCPA generally prohibits calls and text messages using automatic
California Federal Judge Approves $2.4M Settlement Against SoFi
The United States District Court for the Northern District of California entered an order on August 9, approving a $2.4 million settlement between Social Finance Inc. (“SoFi”) and a class of nearly 11,000 consumers for alleged violations of the Fair Credit Reporting Act.
In Heaton v. Social Finance Inc., the named plaintiffs alleged that
Join Us on August 30 for Timely Discussion of Proposed CFPB Debt Collection Rules
On July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules seek to curb “excessive or disruptive” communications by restricting collectors from calling debtors numerous times a day, requiring debt collection companies to have “more and better
FDIC Proposes Examination Guidance for Third-Party Lending Arrangements
The Federal Deposit Insurance Corporation (“FDIC”) is seeking comment on proposed examination guidance for Third-Party Lending. [1] The proposed guidance, issued July 29, provides banks with safety, soundness and consumer compliance measures to be followed when lending through a business relationship with a third party. The proposed guidance will apply to all banks that engage
FTC Reverses ALJ, Finds that LabMD Violated Section 5 of FTC Act
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
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