Les Rosen

The use of a “Retail Theft Contributory Database” in California is being challenged in a class action lawsuit filed in federal Court in San Francisco on January 31, 2013. The lawsuit alleges that this type of database violates both federal and state laws by providing information to retailers about detentions for suspicion of theft or fraud but did not result in a conviction. The lawsuit seeks damages of up to $1,000 for every California consumer that was the subject of a negative report within the last two years where there was not a conviction, as well as legal fees and other damages. According to the Complaint filed in Court, the background screening firm that is subject of the class action lawsuit sold memberships to retail merchants that required each merchant to contribute suspected theft or shoplifting records of employees or customers to a database shared by all members, essentially creating a retail employment blacklist. This case was filed in United States District Court, Northern District of California, on January 31, 2014 (CV 14-0493).

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