Hood, AGs Across the Nation Announce Settlement with ChoicePoint
[Verbatim statement from AG Jim Hood] Attorney General Jim Hood along with the attorneys general of 43 other states, today announced a settlement with ChoicePoint to resolve allegations that the company failed to adequately maintain the privacy and security of consumers personal information in its control. As part of this settlement, ChoicePoint will pay $500,000 to the states. Mississippi will receive $5,500 of this payment to fund consumer education and enforcement of the consumer protection laws.
ChoicePoint is a provider of identification and credential verification services to businesses, government and non-profit organizations. ChoicePoint, among other things, collects, maintains, and distributes consumers personal information. In February 2005, ChoicePoint announced that criminals posing as legitimate businesses gained access to
consumers’ personal information.
As part of this settlement, ChoicePoint will make significant, ongoing changes in the way that the company credentials new customers. “This is the first time a data broker has agreed to safeguard publicly available information, including social security numbers, using the same credentialing methods as it uses to safeguard financial information that is protected by law,” said Attorney General Jim Hood.
In January 2006, ChoicePoint settled its case with the Federal Trade Commission and paid $5 million into a pool to be used for consumer reinbursement. The FTC settlement requires ChoicePoint to improve its process for accepting clients that obtain information from credit reports. The settlement entered into today by the states goes beyond the FTC settlement and requires ChoicePoint to improve its credentialing process for clients that obtain Social Security numbers and other forms of personally
sensitive information.
Consumers who suffered out of pocket expenses relating to identity theft that resulted from the ChoicePoint breach may obtain reimbursement under the FTC Order. The deadline to submit a claim form to the FTC is June 22, 2007. More information (including examples of eligible reimbursement expenses and a complete list of joining states) is
available at http://www.agjimhood.com
Posted by kate at 11:44 AM in Attorney General, Releases | Email this entry
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