International Law

TJX reaches tentative settlement with MasterCard

By David T.S. Fraser

Shamed retailer TJX has reached a tentative settlement with MasterCard to the tune of $24 million, according to the Associated Press:

The Associated Press: TJX Could Pay Another $24M for Breach

BOSTON (AP) ? Discount retailer TJX Cos. could pay as much as $24 million in a settlement Wednesday with MasterCard Inc. over a massive breach that exposed tens of millions of payment card numbers to hackers.

The pact came as a group that tracks U.S. data breaches reported the number of cases in the first three months of this year was more than double the total in last year's first quarter.

The TJX agreement, which follows a similar $40.9 million pact in November with Visa Inc., hinges on banks that issue MasterCards agreeing to waive rights to sue TJX in exchange for being paid for breach-related costs.

Issuers of at least 90 percent of the MasterCard accounts identified as possibly being compromised in the breach must approve the agreement by May 2 for the settlement to take effect, Purchase, N.Y.-based MasterCard and Framingham, Mass.-based TJX said in separate news releases.

In the Visa agreement, TJX won consent from more than 95 percent of Visa issuers within three weeks after the deal was announced Nov. 30. That agreement required 80 percent approval, rather than the MasterCard agreement's 90 percent threshold.

TJX President and Chief Executive Carol Meyrowitz said her company believes the latest agreement "provides a fair resolution for MasterCard and its issuing banks."

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Full post as published by The Canadian Privacy Law Blog on April 03, 2008 (boomark / email).