Small businesses in Texas facing lawsuits due to data breaches
Texas Consumers Have Multiple Options to Sue Small Businesses for Data Breaches
In today's digital age, the protection of personal data has become a critical concern. Small businesses in Texas must uphold their duty of care to safeguard consumers' sensitive information, or they may face legal consequences. Here's a guide for consumers in Texas who have been affected by a data breach and are considering legal action.
Negligence Claims
If a business fails to take reasonable care in securing personal data, resulting in a breach and subsequent harm such as identity theft or financial loss, consumers can file a negligence claim. This means that the business has breached their duty of care, causing harm to the consumer.
Breach of Contract or Warranty
If there was an agreement or implied warranty that the business would protect personal data, a consumer might sue for breach of contract or common law express warranty related to data protection obligations. This could include cases where the business has failed to fulfill their specific obligations regarding the protection of consumers' data.
Consumer Protection Laws
Texas consumer protection statutes may permit suits for unfair or deceptive business practices related to data breaches. This can sometimes allow for injunctive relief without the need to prove actual damages.
Civil Penalties and Damages
Under statutes like the Texas Identity Theft Enforcement and Protection Act, consumers can pursue civil penalties against businesses that fail to meet notification or prevention requirements, especially if they have suffered actual financial harm or identity theft caused by the breach.
Class Action Lawsuits
If many consumers are affected by the same breach, they can form a class action suit against the business, leveraging collective legal claims for negligence, statutory violations, or consumer protection breaches.
Proving financial harm or identity theft linked to the breach is important to recover damages. Recent Texas legislation, such as Senate Bill 2610, may limit exemplary damages against small businesses, making claims for actual damages or statutory penalties more common.
Seeking Legal Advice
Victimized consumers can benefit from consulting a data breach lawyer to discuss their case and assess specific claims. Federman & Sherwood, a law firm with offices in Texas and Oklahoma, maintains a 50-state practice helping data breach victims. An experienced data breach litigation lawyer at Federman & Sherwood can represent consumers in lawsuits against businesses.
Consumers in Texas who have been the victim of a data breach and wish to explore their legal options can schedule a free initial consultation with a data breach lawyer from Federman & Sherwood by filling out an online contact form or by calling (800) 237-1277. Financial compensation may be available for consumers who have been affected by a data breach.
Technology and data privacy are crucial elements in the context of data breaches, particularly when consumers consider legal action against small businesses in Texas. For instance, if a business neglects reasonable care in securing personal data, leading to a breach causing identity theft or financial loss, it may be held accountable for the subsequent negligence. Moreover, if there's an agreement or implied promise regarding data protection, a breach of such contract or warranty can result in a lawsuit.
