Tell us
what you think
Our Sponsors
 |
Our Sponsors
|
Privacy Lawsuits
Copycat Effects
The suit against USBank was the first but not the only lawsuit against a major financial institution for violation of consumers' privacy. This case, however, didn't have the same success.
The case turned around a privacy disclosure made by Chase to customers and the sale of information for marketing purposes. In its disclosure, Chase advised consumers that it would share information with unrelated companies to make special offers that may be of interest to customers.
The judge ruled that the plaintiffs lacked grounds to sue because they did not allege any injuries, a necessary element under New York State Law. However, the judge did find that a reasonable consumer would have understood the disclosure to be a promise not to sell information. Although Chase prevailed, the judges view of the disclosure should serve as a clear warning as banks develop privacy disclosures under FinMod. Clarity to the consumer is essential.
Copyright © 2000 Compliance Action. Originally appeared in Compliance Action, Vol. 5, No. 10, 9/00
Rate This Article
Current Rating For the Feature:
| Privacy Lawsuits Copycat Effects |
| Total Ratings for this Feature: 0 |
|