Yesterday, we blogged about the FTC’s report released last week, “Protecting Consumer Privacy in an Era of Rapid Change.” But if the FTC’s recommendations become requirements, how would they change what the typical company is doing today?
personal
No Harm, No Lawsuit: Seventh Circuit Refuses Data Breach Lawsuit Where Credit Monitoring Costs Are the Only “Damages” Sought
Where the only “damages” alleged following a data security breach are the costs of credit monitoring, a plaintiff has no case, so ruled the Seventh Circuit on August 23, 2007. The decision dealt another blow to so-called “identity exposure” plaintiffs seeking to recover damages stemming from the unauthorized disclosure of their personal information, as the Seventh Circuit’s ruling joined the unanimous line of lower court decisions denying recovery in the absence of actual, present harm.
In Pisciotta v. Old National Bancorp, — F.3d –, 2007 WL 2389770 (7th Cir. Aug. 23, 2007), the court ruled that “Indiana law would not recognize the costs of credit monitoring that the plaintiffs seek to recover in this case as compensable damages.” Id. at *6. In doing so, the Seventh Circuit joins a chorus of federal district courts that uniformly reject such costs as a form of cognizable injury sufficient to support legal claims for damages.