Litigator’s Dream: A Dumpster Full of Customer Records.

The FTC charged that BJ's Wholesale Club engaged in a number of practices which, taken together, did not provide reasonable security for sensitive customer information.

The FTC also alleges that they failed: “to secure customers' sensitive information was an unfair practice because it caused substantial injury that was not reasonably avoidable by consumers and not outweighed by offsetting benefits to consumers or competition.“

Companies of All Sizes are Responsible for the security of confidential customer information.
" Consumers must have the confidence that companies that possess their confidential information will handle it with due care and provide for its security,” said Deborah Platt Majoras, Chairman of the FTC. “This case demonstrates our intention to challenge companies that fail to protect adequately consumers' sensitive information.”

Litigator’s Dream
In addition to FTC enforcement, FACTA provides for civil action against companies and Individuals. “With unlimited statutory damages [under FACTA] this is a litigator's dream,” says Thomas Hefferon, Partner at Goodwin Proctor LLP. He describes the perfect case as one that is interesting, clearly in violation of the law and involves a large number of people or dollars. An example of all three is a dumpster full of customer records.

For more information on FACTA: www.ftc.gov

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