Shoppers Claims Sephora’s Data-Sharing Violations Are Ongoing
In a new class action lawsuit, two customers are suing Sephora and The Retail Equation, Inc. (TRE), a data analytics company, for the ongoing exchange and judgment of customers’ private information.
Shadi Hayden, et al. v. The Retail Equation, et al.
Sephora’s Motion for Dismissal
Sephora filed a motion for dismissal, arguing that the California Consumer Privacy Act (CCPA), which they are alleged of violating, was not in effect at the period the plaintiffs’ complaints began.
Shadi Hayden and Sowbhagia Naidu, the lead plaintiffs, filed the Sephora & TRE Privacy Class Action Lawsuit after they attempted to make an in-store return or exchange back in 2019. Their transactions were denied after Sephora shared the information with TRE, which determined that Hayden and Naidu posed high retail risks.
Retailers use a “risk score” at the start of a return or exchange supposedly to evaluate whether the shopper is attempting to commit fraud or another criminal act, leading several people to be falsely branded as a fraudster and be denied an exchange or store credit.
The plaintiffs responded to Sephora’s motion to argue that they are litigating the allegedly ongoing illegal sharing of information, not merely the return exchange that happened in 2019. Therefore, the CCPA would still be valid in this case, the plaintiffs say.
About the Lawsuit: Shadi Hayden, et al. v. The Retail Equation, et al.
The case involves the unauthorized exchange, receipt, and use of customer data — more precisely, non-anonymized, individual Consumer Commercial Activity Data as well as Consumer ID Data.
Sephora USA, Inc. exchanges consumer data with The Retail Equation, Inc. without customer knowledge or consent. TRE analyzes shared consumer data in order to develop a consumer report and a “risk score” for each Sephora customer.
After that, the “risk score” is utilized to inform Sephora that attempted returns and exchanges of the products are fraudulent and abusive.
Plaintiff and Class members suffer harm as a result of the following:
- Sephora’s sharing of Consumer Commercial Activity and Consumer ID Data;
- The receipt by TRE of their Consumer Commercial Activity and Consumer ID Data,
- The Defendants’ use of their Consumer Commercial Activity and Consumer ID Data.
Further, Sephora prohibits valid returns and exchanges as a result of the practices.
Sephora USA, Inc. and The Retail Equation, Inc. face claims of invasion of privacy, unfair competition, unconscionability, defamation per se, violation of the Fair Credit Reporting Act, as well as unjust enrichment.
Editor’s Note on Sephora & TRE Privacy Class Action Lawsuit:
This article is written to inform you of Sephora’s motion for dismissal over the alleged data-sharing violations.
Case Name & No.: Shadi Hayden, et al. v. The Retail Equation, et al., Case No. 8:20-cv-01203
Jurisdiction: U.S. District Court for the Central District of California Eastern Division
Allegations: Sephora and TRE allegedly shared customers’ data without their knowledge or consent
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