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UPDATE: On Nov. 19, 2020, Hanna Andersson and Salesforce agreed to pay $400,000 to resolve claims that more than 200,000 of their customers had information compromised in a data breach.
A class action lawsuit claims that clothing retailer Hanna Andersson LLC and its payment provider Salesforce failed to protect consumers from a 2019 data breach in violation of a new California law governing privacy.
According to plaintiff Bernadette Barnes, Salesforce was negligent and failed to protect consumers from the data breach which reportedly occurred between September and November 2019.
The breach allegedly allowed hackers to access customer credit card details and billing addresses. Consumers were reportedly alerted of the breach on Jan. 15, 2020.
“In addition to their failure to prevent the breach, Hanna and Salesforce failed to detect the breach for almost three months,” Barnes claims.
The plaintiff also argues that Salesforce violated a new law in the Golden State – the California Consumer Privacy Act (CCPA). CCPA went into effect on Jan. 1, 2020 and provides increased protections for consumers.
Specifically, the law allows Californians to request information from businesses about which of their data is stored by the company. For example, consumers can see the categories and detailed logs of data that is being gathered by companies – including smartphone locations, online activities, biometric face data, voice recordings, ad data, and more.
If this data is used to make inferences about a consumer’s behavior, attitudes, psychology, intelligence, or abilities, those profiles can also be accessed under the CCPA.
Under the new act, California residents are allowed to request that their information be deleted. In some cases, companies may have a self-service feature which allows consumers to request that their information be deleted. However, other companies may require consumers to submit a written request in order to delete their stored personal data.
Finally, the CCPA allows Californians to opt out of having their data sold. Selling consumer data can be a lucrative option for companies since advertising firms rely heavily on this information. However, consumers can request that companies do not share their information with third parties. In fact, under the CCPA, companies must display a prominent “Do Not Sell My Data” notice on their websites.
For parents, the CCPA also requires businesses to get parental permission before selling the personal information of children who are under the age of 13.
The CCPA applies to a variety of companies such as retailers, ride-sharing services, TV companies, cellular providers, and other companies who gather consumer data as a part of their business.
Barnes’ recent Salesforce class action lawsuit is one of the first to cite the CCPA in a consumer complaint. However, she may run into problems when it comes to enforcing CCPA, since the statute is not retroactive. The Salesforce data breach occurred in 2019, while the CCPA only went into effect in January 2020.
Was your information compromised in the Salesforce data breach? Share your thoughts in the comment section below.
Barnes and the proposed Class are represented by M. Anderson Berry and Leslie Guillon of Clayeo C. Arnold PLC and John A. Yanchunis of Morgan & Morgan.
The Salesforce Data Breach Class Action Lawsuit is Barnes, et al. v. Hanna Andersson LLC, et al., Case No. 4:20-cv-00812, in the U.S. District Court for the Northern District of California.
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