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Merchants have new cause for concern

By December 15, 2014 No Comments
Reuters published an article on December 5th talking about new lawsuit status that could leave merchants and other taking credit cards for payment with more concern than ever. A judge in Minnesota ruled that a class action lawsuit from banks and other financial institutions can proceed against Target. U.S. District Judge Paul Magnuson found that the banks were foreseeable victims of Target’s negligent conduct. The suit seeks to recover some of the billions the banks and financial institutions spent replacing customers’ compromised credit and debit cards. Target filed to dismiss because there was no contract in place between the card issuers and Target. Magnuson agreed with the bank’s argument that the case is about plain old negligence, not third-party contract harm. He also found that imposing a duty of care on target “will aid minnesota’s policy of punishing companies that do not secure consumers’ credit- and debit-card information”, a policy he found followed from Minnesota’s Plastic Card Security Act which holds merchants liable for card issuers’ cost on Minnesota business that have violated the law’s restrictions on retaining customer data. To read the full story, Click Here
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Richard

Author Richard

Richard has been interested in the computer industry since high school and has worked in the field for the last 30 years. Richard has been a lead consultant for SecureNation for three years and he excels at quickly understanding new technologies and how they interact with existing installations. Richard is a native of Baton Rouge.

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