Follow up on TJX

We wrote earlier about the TJX data breach. In the aftermath, hundreds of banks have banded together in a class action lawsuit against TJX to prove that TJX was responsible for negligent misrepresentation that the company was safeguarding and disposing of cardholder data. "These representations were not true and showed a lack of reasonable care and were both unfair trade practices and negligent misrepresentation under Massachusetts law," according to Daniel Forte, CEO of the Massachusetts Banker's Association.

He went on to state, "If we're successful against TJX, the nation's major retailers will finally wake up to the fact that not protecting consumer data is an unfair trade practice and that investment in data management systems to protect consumers and shield consumers against fraud and identity theft is required."

The bank consortium is seeking damages in the tens of millions of dollars.

According to Retail Systems Alert Group, "TJX must report to the US House of Representatives later this month. The outcome of those hearings will undoubtedly add weight to the banks' (at very least) legal vantage, and indeed threatens to provide leverage to scorned entities not yet heard from - including the customer. Shoppers who are so clearly interested in deals will most likely be interested in financial compensation, as well."