A data breach resulting in the theft and use of customer credit card numbers results in significant expenses and penalties for the victim company. Many companies still do not have specific cyber liability coverage and thus can be on the hook for all expenses related to such a breach. The Sixth Circuit Court of Appeals recently held that such losses resulting from the cyber theft of customer data were recoverable under a commercial crime policy. Retail Ventures, Inc. v. Nat'l Union Fire Ins. Co., 691 F. 3d 821 (6th Cir. 2012).
According to the complaint Path represented that personal information from the user's mobile device contacts would be collected only if the user clicked on "Add Friends" and then chose the "Find friends from your contacts" option. But despite that promise, Path automatically collected and stored personal data the first time the user launched the app and, if they signed out, each time they signed back in again. That, says the FTC, made Path's statement false.
The United States Federal Trade Commission (FTC) has recently dropped its lawsuit against Google regarding supposed antitrust practices in the design of its search engines. Google has been accused of promoting its own products over competitors when it comes to search engine results.
As the best informed Connecticut technology lawyers already know, the FTC (Federal Trade Commission) and Google have announced a $22.5 million dollar settlement (the largest civil penalty ever) to address claims of unfair and deceptive trade practices in violating its privacy statement for Google Buzz - a social networking application for Gmail users. Click Here for Bureau of Consumer Protection Business Center post with full history.
Connecticut commercial litigation attorneys who follow best practices will look to the Connecticut Unfair Trade Practices Act, commonly referred to as "CUTPA" to increase damages claims arising from breach of contract or other type of business dispute. Click here for link to Connecticut General Statutes Sec. 42-110 et seq