Ukrainian Law Blog
Freedom means the supremacy of human rights everywhere
Friday, December 1, 2017
Rise of State Consumer Protection Act Cyber Cases
Plaintiffs in data breach cases have tried many theories of recovery, including negligence, negligence per se, violations of state data protection statutes, violations of the Fair Credit Reporting Act, breach of fiduciary duty, and violations of the constitutional right to privacy, with mixed results.
Courts have rejected many of these claims, but plaintiffs and regulators are increasingly having success with allegations of unfair business practices. At the federal level, the Federal Trade Commission (“FTC”) has obtained settlements in some of the largest breach settlements using this approach, including a $1.6 million settlement with
Ashley Madison
. We are now seeing a rise in state-law consumer protection cyber cases which are attractive to plaintiffs because these laws exist in every state and are interpreted liberally by courts.
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