US Companies on Pace to Pay $1.4 Billion in Privacy Settlements

Data privacy is no longer just a concern for big tech. A surge in legal settlements shows that any retailer using tracking pixels or data-sharing tools on their website is at risk. A new report indicates U.S. companies are on track to pay $1.4 billion in privacy-related settlements this year alone. Many of these lawsuits stem from outdated laws being applied to modern digital marketing tools. For retailers and financing operators, this is a wake-up call regarding how you collect customer information during the application process. If your website uses third-party tracking pixels to monitor how customers interact with financing offers or credit applications, you could be inadvertently sharing protected personal data with tech platforms like Meta or Google without proper consent. This 'secondary use' of data is the primary target for class-action attorneys. You need to audit your digital checkout flow immediately. Ensure that every piece of data collected—especially sensitive financial or identity information—is handled according to strict consent protocols. The cost of a settlement often far outweighs the marketing benefits of these tracking tools.

Source: PYMNTS

← Return to the library· Submit a correction