T.J. Maxx And Other Retailers In Trouble For Alleged Data Breach Concerns
Retail chain T.J. Maxx is facing a class action on lawsuit filed in California, alleging that the company has shared sensitive personal information from its customers without prior express consent.
Filed in the United States (U.S.) District Court for the Central District of California, Shadi Hayden, along with other plaintiffs to the case, contends that T.J. Maxx has allegedly shared their information along with countless more fellow customers of the retail company to The Retail Equation – a third party software company it has worked with.
T.J. Maxx’s relationship with The Retail Equation revolves around the agreement that in exchange for the customers’ data provided by the former, the latter would analyze them to help to identify fraudulent and illicit returns made by customers when shopping at the company’s online shopping platform.
At first glance, this may seem a very responsible action on the part of T.J. Maxx to keep its system secure. Yet, Hayden states in their complaint that the company failed to ask for their permission first before handing over data such as their personal information they willingly gave to T.J. Maxx when they perform any online transaction with it.
It was supposed to be a secure, one-way business-to-consumer relationship that they believed was violated by the company.
According to the class action, this is a case of the company violating the California Consumer Privacy Act.
This state law aims to protect consumers from having their data shared with other entities by businesses without them giving their prior express consent.
A Case Of The Fine Print
As a response to the complaint, T.J. Maxx representatives fired back, stating that the company and their customer have agreed in a so-called “arbitration,” which is stated in its Terms of Service, which customers are presented with before being able to shop on the company’s site.
Nevertheless, the complainants argued that this “arbitration” clause is tucked deep underneath the company’s fine print agreement.
They continue that T.J. Maxx seemingly deliberately hid this information from customers through very lengthy text.
One needs to go through numerous pages and thousands of words before being able to encounter the company’s policy on arbitration.
And the kicker? The customer is still not presented with the exact information. Instead, they are provided with a link to the actual text of the terms.
Even the use of the word “arbitration” is absent in the document’s headings, which are supposed to make navigating through this sea of words easier and faster.
“Indeed, the word arbitration does not appear in the Terms until a reader scrolls through six pages of text and more than 4,300 words”, the lawsuit states.
Plaintiffs Raise More Concerns
Additionally, the plaintiffs to the class action cast doubt on the defendant’s, T.J. Maxx, pieces of evidence presented in court.
Asked to provide their counter-argument in court as part of the whole litigation process, the retail giant and its legal representatives presented different pieces of documents to support their claim.
However, the complainants argue that the retail company has submitted a piece of evidence that is very different from the actual truth.
Hayden and their peers contest that the website information that the company has provided to the court is entirely different compared to what they used as online shoppers.
T.J. Maxx is not the only one getting a lot of heat regarding this matter. Other retail companies such as Best Buy, Bed Bath & Beyond, The Home Depot, and Sephora were also named as other defendants in the case.
Officially known as Shadi Hayden et al. v. The Retail Equation, et al., the T.J. Maxx Data Breach Class Action Lawsuit is one of the biggest and most important class action lawsuits involving several retail companies this year.
Every day and avid shoppers of these following retail companies are closely eyeing this case.
We will bring the latest court updates to you as soon as the information has been made available to the members of the general public.
About the company
T.J. Maxx is an American retailer and department store chain established in 1976. With headquarters in Massachusetts, the company is well known for selling its items at a lower price tag compared to other competitors, which helped its rise in the retail industry.
With more than a thousand stores nationwide as of early 2020, T.J. Maxx has recorded revenue growth of $38.94 billion in 2018.
The company has an international presence and employs more than a quarter-million employees in its workforce.
Editor’s Note on T.J. Maxx Class Action Lawsuit:
This article is published to inform you of the latest class action lawsuit filed against T.J. Maxx and other companies for allegedly violating the law regarding handling customer’s private data.
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