The Federal Trade Commission is mailing checks to 14,023 consumers who were victims of ChoicePoint’s alleged failure to have a comprehensive information security program to protect consumers’ personal information, as required by a previous court order.
As a result, in early 2008, an unauthorized person accessed its database and conducted unauthorized searches.
ChoicePoint settled FTC charges in January 2006 that its security and record-handling procedures violated consumers’ privacy rights and federal law, an action relating to a 2005 data breach.
As part of that settlement, ChoicePoint agreed to maintain procedures to ensure that sensitive consumer reports were provided only to legitimate businesses for lawful purposes, to maintain a comprehensive data security program and to obtain independent assessments of its data security program every other year until 2026.
In October 2009, the company settled charges that it violated the 2006 settlement order and agreed to a modified court order that expanded its data security assessment and reporting duties and required the company to compensate affected consumers for the time they may have spent monitoring their credit or taking other steps in response. Checks for $18.17 are being sent to consumers.