On September 12, the Federal Trade Commission announced that it is seeking comment on its rule regarding the Disposal of Consumer Report Information and Records. Under the Disposal Rule, a person is required to properly dispose of consumer information by taking reasonable measures to protect against unauthorized access or use of the information in
Privacy + Cyber
Third Circuit Affirms Dismissal of Data Breach Class Action Against Benecard
The Third Circuit recently affirmed a District Court’s dismissal of a data breach class action against Benecard Services Inc. (“Benecard”).
Benecard is a prescription benefit administrative services company that provides mail and specialty drug dispensing, managed vision services, and contact lens mail order services to public and private sector organizations. The instant case arose from …
TCPA Case Dismissed in Part on Economic Damages Analysis
A plaintiff filed a complaint against an online university, alleging claims under the Telephone Consumer Protection Act and the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”) relating to the defendant’s alleged repeated and unsolicited calls to the plaintiff’s cell phone.
The defendant, Ashford University, LLC, allegedly called plaintiff Melissa Nelson’s cell …
TCPA Case Dismissed on Spokeo Reasoning
The District Court for the Southern District of California recently granted a motion to dismiss in a Telephone Consumer Protection Act case based on the Supreme Court’s decision in Spokeo, finding that the plaintiff failed to put forth evidence proving an injury-in-fact.
In Romero v. Department Stores National Bank, the defendant creditors allegedly …
FTC Seeks Comment on its Safeguarding Rule
The Federal Trade Commission announced on August 29 that it is seeking public comment on its Standards for Safeguarding Customer Information, commonly known as the Safeguards Rule, as part of the FTC’s periodic retrospective review of the rules. The Safeguards Rule, effective May 23, 2003, was issued under the Gramm-Leach-Bliley Act and places certain requirements…
Join Us at ACI’s 2nd National Forum on Data Breach & Privacy Litigation and Enforcement
We are pleased to announce that Troutman Sanders partner Ron Raether will be a featured speaker at the American Conference Institute’s 2nd National Forum on Data Breach & Privacy Litigation, to be held at The Carlton Hotel in New York City September 29-30.
Ron will participate in a panel discussion entitled “Class Actions: Data…
OCR Settles With Illinois Nonprofit Medical Group for $5.55 Million in Medical Data Breach Investigation
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…
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 …