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Settlement May Incite More Suits, Official Calls for National Notification Standards

PRIVACY LAW—U.S.

November 28, 2011

Dark Reading reports on a recently proposed settlement that may result in an additional flurry of data breach lawsuits. The proposed settlement would award one RockYou customer $2,000. RockYou's 32 million customers were affected in a 2009 data breach. The company allegedly stored unencrypted user account data in its database, used only five-character passwords and used e-mail to send passwords out. The proposed settlement may "prop the door open for more lawsuits," the report states. Meanwhile, U.S. Deputy Attorney General James Cole opines in The Sacramento Bee that Congress should act promptly to "require companies to comply with a national data breach notification requirement and hold them accountable to consumers and the marketplace."
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