Wednesday, April 2, 2014

Privacy Class Action Need Not Show Harm?

In what is believed to be a first, data breach victims will be compensated without a claim for realized financial harm.

In Curry v. AvMed a $3 million class-action settlement was approved by a Florida federal district court. The case reflects an evolution of consumer privacy “harm” that is taking place in the courts and at the FTC.

"A Florida federal district court approved a $3 million class-action settlement believed to the first of its kind: one that compensated victims of a data breach without a claim for realized financial harm."
- PrivacyAssociation.org
"High-profile data breaches continue to hit the newsstands; class-action lawsuits follow; the Federal Trade Commission (FTC) and state attorneys general launch enforcement actions, and consumers complain in record numbers to federal and state legislators. The question of which breaches are actionable and what harms are compensable is more important than ever," according to an International Association of Privacy Professionals article "The Evolving Nature of Consumer Privacy Harm".

What do you think? Must privacy data breaches demonstrate financial harm to be considered actionable?

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Sources:
(a) The Evolving Nature of Consumer Privacy Harm - www.PrivacyAssociation.org, 04/01/2014

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