JURIST Sponsored by the University of Pittsburgh
Serious law. Primary sources. Global perspective.

Thursday, January 26, 2006

FTC imposes record fine on ChoicePoint in data-loss case
Joshua Pantesco at 4:52 PM ET

[JURIST] The US Federal Trade Commission (FTC) [official website] announced [FTC press release] Thursday that ChoicePoint [corporate website] will be required to pay $10 million in civil penalties and $5 million to customers affected by last year's identity theft incident [JURIST report] as a result of making false and misleading statements to consumers regarding their information safety policies. The FTC charged ChoicePoint with violating the Fair Credit Reporting Act [text] by misrepresenting the security of their information database. As a result of a security weakness in the ChoicePoint database, hackers gained access to the personal information of over 163,000 ChoicePoint customers, leading to at least 5,000 cases of identity theft. The settlement obligates ChoicePoint to conduct comprehensive background checks for every business requesting access to the database, to establish and maintain a more effective information security system, and requires that outside security professionals audit the system every year until 2026. Read the complaint [PDF text] and the final judgement and order [PDF text]. CNET has more.

Link |  | print | subscribe | RSS feeds | latest newscast | Facebook page

For more legal news check the Paper Chase Archive...


 Rights groups condemn Algeria for unfair trial of activists
12:26 PM ET, July 30

 Appeals court overturns law that would close Mississippi abortion clinic
11:00 AM ET, July 30

 Congressman introduces bill to legalize marijuana oil
9:20 AM ET, July 29

 click for more...

Get JURIST legal news delivered daily to your e-mail!


Unprecedented Notice of Warrantless Wiretapping in a Closed Case
Ramzi Kassem
CUNY School of Law


Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.


Paper Chase welcomes comments, tips and URLs from readers. E-mail us at JURIST@jurist.org