Intellectual Property Law

Risk of Credit Fraud Not Sufficient for Standing

By Steve Cosentino

Veronica Jackson at the Consumer Finance Law Blog reports on the recent case of Hammond v. The Bank of New York Mellon Corp., No. 08-6060, 2010 WL 2643307 (S.D.N.Y. June 25, 2010).  In Hammond, the Southern District of New York held that plaintiffs who sue based on a potential risk of identity theft, instead of actual identity theft and demonstrated damages, lack standing to sue.  While this decision is controversial amongst privacy and security advocates, it does lean toward recognition of the need for some sort of floodgate in a world where information circulates quickly and in high volume.  It will certainly be interesting to see how this case plays into other privacy issues where damages are not so evident.  In a non-financial privacy claim - does the standing rule still apply?  Identity theft damages are fairly concrete in comparison to the variety of other issues involving the disclosure of non-financial data.

Full post as published by The TechKnowledgy Blog on July 29, 2010 (boomark / email).