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Home/Banking News/A Massive Retailer Is Now Facing a Disturbing Lawsuit
Market News Today - A Massive Retailer Is Now Facing a Disturbing Lawsuit

A Massive Retailer Is Now Facing a Disturbing Lawsuit

By Frank Nez
April 18, 2024
2

A massive retailer is now facing a disturbing lawsuit for allegedly putting shoppers at risk from its technology collecting deep data.

Target’s surveillance system has landed the company in some hot water, and it’s in the form of a class action lawsuit, reports TheStreet.

Amid Target’s battle against growing theft in its stores, the retailer is being accused of collecting biometric data from its customers through its video surveillance systems without their consent.

Biometric data is personal information that can be used to identify a person’s physical or behavioral characteristics.

This can include fingerprints, facial and voice recognition, etc.

“Target’s stores in Illinois are outfitted with cameras and advanced video surveillance systems that– unbeknownst to customers– surreptitiously collect, possess, or otherwise obtain Biometric Data,” reads the lawsuit.

“Target does not notify customers of this fact prior to store entry, nor does it obtain consent prior to collecting its customers’ Biometric Data.”

The lawsuit, which was filed on March 11 by a woman in Illinois, also alleges that Target does not inform customers what it intends to do with the biometric data it collects.

“Target does not have written, publicly available policies identifying their retention schedules or guidelines for permanently destroying any of these biometric identifiers or biometric information,” reads the lawsuit.

It also highlights that the collection of biometric data can pose a threat to security due to the possibility of it being compromised, which can put individuals at risk for identity theft.

“For example, social security numbers, when compromised, can be changed,” reads the lawsuit.

“Biometrics, however, are biologically unique to the individual; therefore, once compromised, the individual has no recourse, is at heightened risk for identity theft, and is likely to withdraw from biometric-facilitated transactions.”

The plaintiff in the lawsuit alleges that Target has violated Illinois’ Biometric Information Privacy Act, and each violation of the law can result in a plaintiff receiving damages that range $1,000 for negligent violations to $5,000 for intentional or reckless violations, as well as attorneys’ fees, costs and injunctive relief.

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Market News Today - A Massive Retailer Is Now Facing a Disturbing Lawsuit.
Market News Today – A Massive Retailer Is Now Facing a Disturbing Lawsuit.

An essential retailer is now making more painful closures nationwide after the giant filed for an unexpected bankruptcy in October.

Rite Aid filed a notice in the U.S. Bankruptcy Court for the District of New Jersey on April 16 seeking to close 13 additional stores located in the East and Midwest, reports TheStreet.

The notice identified six stores in Pennsylvania, three in Ohio, two in New Jersey and one each in New York and Virginia.

The additional store closures bring the amount of shuttered locations to 322 of the original 2,100 stores that were open when the company filed for Chapter 11 bankruptcy on Oct. 15, 2023.

Rite Aid, which listed $3.3 billion in debt in its petition, filed bankruptcy facing tight co from rivals including CVS, Walgreens Boots Alliance, Walmart, Costco, Amazon, and investor Mark Cuban’s CostPlus Drug.

The company was also a defendant in a civil lawsuit filed against it by the Department of Justice in March 2023.

They alleged that the chain’s pharmacists inappropriately filled opioid prescriptions, contributing to the opioid epidemic.

The bankruptcy filing provided an automatic stay of any further legal action against the debtor in the lawsuit.

Rite Aid seeks to negotiate a less expensive settlement, which could have amounted to more than $1 billion without the bankruptcy filing.

The drugstore chain has filed several notices for additional store closures since its Oct. 17 motion to reject store leases and close 154 stores.

In November and December, it filed notices to reject 55 more stores and in late December and early January, it sought another 45 closures.

The Philadelphia-based drugstore chain filed notices on April 2 to close 30 stores, April 3 to close six locations and April 9 to close 17 stores.

In California, 18 of the stores are set to be closed.

The closure list also included 13 in New York, 12 in Pennsylvania, three in New Jersey, two in Michigan, two in Ohio, and one each in Maryland, Massachusetts and Virginia.

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Market News Today - A Massive Retailer Is Now Facing a Disturbing Lawsuit.
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Frank Nez is an American entrepreneur, journalist, writer, and investor. Frank's work has been cited by SEC and Congressional reports. Franknez.com is a personal finance and market news blog, dedicated to publishing content on money, investing, entrepreneurship, and retail investor news.

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  1. Frank Nez says:
    April 18, 2024 at 5:11 pm

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  2. Frank Nez says:
    April 18, 2024 at 5:11 pm

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