FTC Announces ChoicePoint Settlement
The Federal Trade Commission (FTC) recently announced that it reached a settlement with ChoicePoint Inc. (”ChoicePoint”), a leading consumer data broker. Under the terms of the settlement, ChoicePoint agreed to pay $275,000 and also agreed to implement tougher data security measures.
The latest settlement arose out of a 2008 data breach that resulted in the exposure of social security numbers and other personal data for 13,750 individuals. In bringing the action against ChoicePoint, the FTC had claimed that ChoicePoint violated the terms of a prior settlement agreement reached after the company’s massive breach in 2005.
Information and documents about the 2008 breach and 2009 settlement is available on the FTC web site. In addition, information about the 2006 case that arose out of the 2005 breach is also available on a dedicated page of the FTC web site.
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Jacqueline Klosek, Senior Counsel in the Business Law Department of Goodwin Procter LLP, is a frequent author and commentator on data privacy and security. You can email her at jacquelineklosek@gmail.com -
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