Risks Of Sharing Employee Data With 3rd-Party Vendors

Law360, New York (August 9, 2012, 1:07 PM EDT) -- A recently filed class action asserts claims against the Winn-Dixie supermarket chain and a third-party vendor, Purchasing Power LLC, in connection with the alleged theft of employee data provided to Purchasing Power in order to administer a discount purchasing program offered to Winn-Dixie employees. The claims advanced against Winn-Dixie and Purchasing Power highlight the potential risks associated with sharing employee or customer data with third-party vendors, and underscore the need for companies to ensure that the data security practices of third-party vendors are consistent with those of the companies themselves. The complaint also demonstrates how failure to make prompt disclosure of data breaches to affected individuals can increase the risk of class action litigation....

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