Dick's, Best Buy, Tech Co. Sued Over Consumer 'Risk Scores'

By Diamond Naga Siu (July 29, 2021, 9:10 PM EDT) -- A group of consumers is suing Dick's Sporting Goods, Best Buy and other major retailers in a Pennsylvania federal court for contracting with a consumer reporting agency they claim invaded their privacy and violated state and federal laws.

The Retail Equation, which is also a named defendant in the proposed class action, is the only retail-related consumer reporting agency recognized by the Consumer Financial Protection Bureau. The California-based software company assigns people "risk scores" related to returning and exchanging products. Once it has tracked those consumer returns and exchanges, it then uses algorithms and predictive models to rate how likely the...

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