Does anyone remember ChoicePoint, the data warehousing company that gave criminals access to the personal data of over 150,000 U.S. consumers back in 2004? When the story broke about a year ago, I made note of how ChoicePoint itself actually had been part and parcel of the problem, and lamented the way in which the media was portraying ChoicePoint as a victim rather than as a participant in the destruction of privacy. In light of that, I’m superbly happy to see that the Federal Trade Commission agreed with me today, fining ChoicePoint $10 million and noting that the firm had failed to tighten its internal security despite specific federal warnings going back as far as 2001. The firm also has to pay $5 million into a consumer redress fund, establish comprehensive information security programs, and submit to biennial security audits through the year 2026. (Of course, ChoicePoint netted $147 million in 2004, so part of me would have loved to see even steeper fines; that would have been as clear a message as possible that putting American consumers’ personal data at risk is a corporate practice that will effectively lead to the end of your corporation.)

Comments

Great post! I am so happy the FTC has cracked down on this company. I’m recommending that everyone orders free copies of their ChoicePoint reports by phone today. Read more about this here.

• Posted by: Emily on Jan 27, 2006, 11:52 AM
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