Page 45 - SMRH Eye on Privacy 2019 Year in Review Brochure

Utility Provider Settles Call Recording Lawsuit for $3.7 Million
Posted on August 6, 2019
Tiger Natural Gas, Inc. recently settled a class action privacy suit alleging that it illegally recorded sales calls with over 27,000 potential customers. Although Tiger hired a third party to handle its telemarketing, Tiger will pay $3.7 million on the claims as the advertiser with ultimate liability for non-compliance. According to the plaintiffs, neither company told the consumers the calls were recorded, as is required under California’s call recording law.
The Northern District of California court approved the settlement, which was far less than Tiger’s potential liability if found to be in violation of the California law. The class’s other claims for relief are still pending class certification, so Tiger is not out of the jungle yet.
PUTTING IT INTO PRACTICE: Advertisers, not their third-party vendors, are ultimately responsible for their brands’ compliance with advertising and consumer privacy laws. Companies engaged in nationwide marketing must therefore keep a keen eye to ensure vendor compliance with state-specific regulations.
Maine Passes Broadband Privacy Bill
Posted on June 12, 2019
Maine entered the privacy fray last week when Governor Janet T. Mills signed legislation targeting internet service providers by prohibiting the sale of information about customers’ internet use. The new restriction covers, in part, customer web browsing history, application usage history, and geolocation information. An internet service provider may only use, disclose, sell or permit access to such information with either the customer’s consent or by complying with one of the few outlined exceptions in the statute.
The law also requires that internet service providers take reasonable security measures to protect their customers’ information from unauthorized use, disclosure or access. No specific level of security is required, with the legislation laying out several factors to consider when implementing security measures.
Finally, internet service providers must provide notice to customers at the time of sale and on their website of both their obligations and customers’ rights under this law.
PUTTING IT INTO PRACTICE: Internet service providers should carefully review and update both their practices to comply with these new requirements and their privacy policy to ensure Maine residents receive notice that their information will not be used, disclosed, sold or accessed unless it fits within one of the exceptions outlined by the law.
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