Judge Jeffrey White of the Northern District of California recently dismissed a putative class action lawsuit in which plaintiffs claimed they faced an imminent threat of future of harm in the form of identity theft and fraud because their personal information, specifically their driver’s license numbers, may have been compromised
identity theft
Circuit Split Deepens as Eleventh Circuit Rejects “Risk of Identity Theft” Theory of Standing in Data Breach Suit
By Melissa D. DiGrande on
On February 4, 2021, the Eleventh Circuit affirmed the dismissal of a customer’s proposed class action lawsuit against a Florida-based fast-food chain, PDQ, over a data breach. The three-judge panel rejected the argument that an increased risk of identity theft was a concrete injury sufficient to confer Article III standing,…
We Were Wrong About the Third Time Being A Charm: FTC Delays Enforcement of Red Flags Rule Yet Again
By Proskauer Rose on
Today, at the urging of Members of Congress, the Federal Trade Commission (“FTC”) announced that it will delay enforcement of its Red Flags Rule for the fourth time. Financial institutions and creditors subject to enforcement by the FTC will now have until June 1, 2010 to develop written policies and…
Third Time’s A Charm: FTC Delays Enforcement Of The Red Flags Rule Again
By Scott Carpenter on
The Federal Trade Commission (“FTC”) announced today that, for the third time, it will delay enforcement of the Red Flags Rule until November 1, 2009 – a year after the original November 1, 2008 compliance deadline. In delaying enforcement yet again, the Commission stated that it intends to engage in an “expanded business education campaign” in which the staff will “redouble its efforts to educate [businesses] about compliance.” Such a campaign is designed to “clarify whether businesses are covered by the Rule and what they must do to comply.” The delay does not affect companies subject to the enforcement authority of federal agencies other than the FTC.…
State Law Claims in an Identity Exposure Case Preempted by Federal Fair Credit Reporting Act
By Proskauer Rose on
the Federal Fair Credit Reporting Act preempted an identity exposure plaintiff’s state law claims for, among other things, negligence, breach of contract, and violation of the New York Deceptive Trade Practices Act
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Red Flags and Address Discrepancies FAQs
By Proskauer Rose on
On Thursday, the staff of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision and the Federal Trade Commission issued a set of FAQs to assist financial institutions, creditors, users of consumer reports, and card issuers in complying with the Red Flags and Address Discrepancies Rules under FACTA.
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Red Flag Rules Blindside Retailers, But Extension of Compliance Deadline Helps
By Kristen J. Mathews on
Last month, we blogged about whether the Red Flag Rules apply to medical care providers. According to the FTC, they may also apply to retailers.
The Federal Trade Commission’s recently released “how-to” guide says that the Red Flag Rules apply to “retailers that offer financing or help consumers get financing from others, say, by processing credit applications.” However, most retailers have been caught off guard by this interpretation, since they are not accustomed to being considered “creditors.” Fortunately for them, in the nick of time for the May 1st compliance deadline, the FTC extended the deadline to August 1, 2009, giving retailers time to put their policies in place in a thoughtful and reasoned manner.…
California District Court Closes the Gap Left by Ruiz
By Proskauer Rose on
On Monday, the Northern District of California granted Gap, Inc.’s Motion for Summary Judgment in Ruiz v. Gap, Inc., et al., Case No. 07-5739 SC, holding that Ruiz’s allegations of an increased risk of identity theft “do[] not rise to the level of appreciable harm necessary to assert a negligence claim under California law.”
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