Shocker, TJX Credit Card Breach Settlement Proposal Lacks Any Real Settlement

from the oops-we're-real-sorry dept

TJX, the parent corporation of retailer TJ Maxx,proposed a settlement to the class action suits leveed against it in what could be largest credit card breach ever, approximately 45 million records. TJX is offering claimants up to three years of credit monitoring along with $20,000 identity theft insurance coverage. This settlement sounds pretty good, until you read the fine print (via Consumerist). In order to qualify for the settlement, you must have returned an item to the store without a receipt; this limits the claimants to approximately 455,000 people, or only about 1% of class. The remaining 44.5 million are only eligible for $30 vouchers in store credit, and only with documented proof of a loss. This definitely seems like a slap on the wrist for TJX. Sure, it's bad, but surely TJX hasn't lost 77% of its customer base from this incident. Finally, in a clever move at the end of the settlement proposal, TJX took this as an opportunity to announce that all of its stores will be having a 15% sale sometime in 2008. Way to turn a class action lawsuit settlement into free advertising, TJ Maxx.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: lawsuits, security
Companies: tj maxx, tjx


Reader Comments

Subscribe: RSS

View by: Time | Thread


  • identicon
    Paul, 25 Sep 2007 @ 6:20pm

    Re:

    Could someone please delete the SPAM?

    My response to it - If this behaviour is an example of how you conduct your business then you are obviously not the type of company I want to do business with.

    reply to this | link to this | view in chronology ]

  • identicon
    Mike, 25 Sep 2007 @ 9:02pm

    Re: Towerstream Wimax broadband

    I think Towerstream sucks ass... and the owner smells funny.

    reply to this | link to this | view in chronology ]

  • icon
    Killer_Tofu (profile), 26 Sep 2007 @ 6:07am

    Why

    mention the ad that TJMaxx mentioned at the end of it?
    Just don't mention it and you are helping to defeat their purpose.
    Then again, most people reading here will probably like the company less for knowing that TJM tried that.
    Now if only we could get everyone who considers shopping at TJM to read this first.
    I actually got a coworker to stop shopping there because of this shit. =)

    reply to this | link to this | view in chronology ]

  • identicon
    OkieFromMuskogee, 27 Sep 2007 @ 10:05am

    It's all about legal fees

    A high percentage - too high - of class action suits are nothing more than a game of "gotcha" between a company and an ingenious law firm. This case is a good example. I'm getting about one notice a month that I'm part of a "class" that someone has "wronged." Typically the class members get some nearly-worthless coupons or something equally frivolous, and the attorneys for the "class" get something like FORTY MILLION DOLLARS.

    I'm not a defender of corporations. In fact, you could call me a rabid populist. But class action suits have become an extortion racket working for the benefit of greedy lawyers. The judges who approve the legal fees in these cases should be impeached.

    reply to this | link to this | view in chronology ]


Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Make this the First Word or Last Word. No thanks. (get credits or sign in to see balance)    
  • Remember name/email/url (set a cookie)

Close

Add A Reply

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Make this the First Word or Last Word. No thanks. (get credits or sign in to see balance)    
  • Remember name/email/url (set a cookie)

Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Loading...
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.