In a decision that will significantly impact the ability of the government to access electronic communications, the United States Court of Appeals for the Sixth Circuit on June 18, 2007, affirmed a district court’s issuance of a preliminary injunction prohibiting governmental entities from obtaining Internet Service Providers’ (“ISP”) subscribers’ e-mail communications unless the subscriber first … Continue Reading
In a recently unsealed order, Central District of California Magistrate Judge Jacqueline Chooljian ruled that data contained in a computer server’s Random Access Memory (RAM) is “electronically stored information” for purposes of Federal Rule of Civil Procedure 34. She also ordered the defendant to begin logging the contents of certain servers’ RAM and producing the logs.… Continue Reading
A recent decision from the Southern District of Ohio echoes prior decisions of district courts addressing negligence claims against companies that have experienced a data breach. The court held that the cost of obtaining credit monitoring services does not count as damages without evidence of identity fraud. Kahle v. Litton Loan Servicing LP, case no. 1:05cv756.
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Since December 4, 2006, consumers have filed dozens of class actions against retailers and other businesses across the country alleging "willful" violations of the Fair and Accurate Credit Transactions Act ("FACTA") amendments to the Fair Credit Reporting Act ("FCRA"), prohibiting the printing of more than five digits, or the expiration date, of a credit card on receipts provided to the customer. Defendants in those cases have been waiting anxiously for the Supreme Court to rule in Safeco Insurance Co. of America, et al. v. Burr, et al., 551 U.S. _____ (2007), a factually inapposite matter in which the Court granted certiorari to determine whether "reckless disregard" suffices for willfulness under the statute. In a decision that raises as many questions as it answers, the Supreme Court held on June 4, 2007 that "reckless" failure to comply with FCRA can be considered willful. The Court's opinion begs the question whether it was objectively reasonable for retailers to continue the printing of expiration dates on customer receipts after FACTA took full effect.
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