Legislative Alert: Misleading Ads | Capital One Lawsuit | Yahoo Breach 

About 3 min

Legislative Alert: Misleading Ads | Capital One Lawsuit | Yahoo Breach 

Screening News:

  • HomeAdvisor Sued for Fudging Background Checks
  • Capital One Faces Class Action
  • Yahoo Could Face Punitive Damage for Data Breach

HomeAdvisor Sued for Fudging Background Checks

You’ve probably seen the TV commercials or heard them on the radio… find your handyman or contractor on HomeAdvisor and never worry about who you are inviting into your home. But according to a lawsuit filed by San Francisco District Attorney George Gascon, the Colorado-based company is misleading consumers. The suit alleges HomeAdvisor only does a background check on the owner or principal of the companies listed on their site – NOT on the actual workers who will be doing the job. According to Gascon, they do background checks, just not on very many people! Gascon says this wordplay violates California law. The company was sent a cease-and-desist letter at the end of last year telling them to stop making false and misleading statements. The company refused. A trial is set for April 12.

Capital One Faces Class Action

Capital One Bank is facing a class action lawsuit for allegedly running credit reports on consumers after they’ve filed for bankruptcy. Named plaintiff Ophelia Augustine says Capital One checked her credit through Experian a few weeks after she filed for bankruptcy. According to the Fair Credit Reporting Act (FCRA), debts are closed after a bankruptcy is filed and it is illegal for crediting institutions to obtain a report unless they have permissible purpose. This complaint says the car loan the plaintiff received from Capital One was discharged by the bankruptcy. Since the account was closed, the inquiry was unauthorized. Augustine is seeking damages for one count of negligent violation of the FCRA and one count of willful violation. She is also seeking other consumers who faced unauthorized inquiries from Capital One over the last 5 years.


[Related Article] FCRA Compliance: What You Need to Know


Yahoo Could Face Punitive Damage for Data Breach

There hasn’t been much talk about the fallout from Yahoo’s massive data breach, but there has been some movement in court. A U.S. District judge refused to grant Yahoo’s motion to dismiss the case regarding the series of three breaches that affected more than 3 billion email accounts. The judge also said the plaintiffs had successfully shown that Yahoo’s former chief information security officers knew there was a problem with data security and that the company was negligent. The judge wrote, “These circumstances make plausible plaintiffs’ claims that high-ranking executives and managers at Yahoo, including its CISO, committed oppressive, fraudulent, or malicious conduct.” The judge did dismiss claims that Yahoo violated California’s breach notification law by taking too long to disclose the scope of the problem. Those allegations, she said, were too uncertain.

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