Small businesses in Texas are facing lawsuits due to data breaches
In the digital age, small businesses are increasingly becoming targets for hackers, as they may not invest enough resources to protect sensitive data. This makes an attack seem like an "easy win" for cybercriminals, with a greater chance of gaining access and less possibility of detection.
When a data breach occurs, consumers can suffer significant losses. However, there is hope for those affected. If your personal data has been compromised, you may be eligible for financial compensation following a data breach.
In Texas, individuals have the legal right to sue a business, regardless of its size, for failing to protect their personal data. This right is not limited to the Texas Deceptive Trade Practices Act (DTPA). Instead, consumers can pursue legal action under various theories, including common law negligence, breach of contract, public policy claims, invasion of privacy or unauthorized access, intentional or negligent misrepresentation, and false and deceptive practices.
For instance, a common law negligence lawsuit can be filed against a small business for failing to protect sensitive data. This involves alleging that the business failed to exercise reasonable care in protecting customer data, resulting in a breach. To succeed, the plaintiff must prove that the business had a duty to protect the data, that this duty was breached, and that the breach caused harm.
Similarly, if a business had contractual obligations to maintain data security (e.g., as part of a user agreement), a data breach could be a breach of those obligations. In such cases, the plaintiff would need to show that the contract was breached and that they suffered damages as a result.
Public policy claims can be based on the idea that businesses have a duty to protect customer data as a matter of public policy. While less common, such claims can be argued where state laws do not provide explicit protections but societal expectations do.
If the data breach involved unauthorized access or use of personal information, claims for invasion of privacy might be applicable. These claims require demonstrating that the breach was an unreasonable intrusion into the private facts of the individuals affected.
Intentional or negligent misrepresentation claims can be made if the business misrepresented their data security practices. This requires showing that the business knowingly or unknowingly made false statements about their data security practices, inducing reliance by the customers.
If a business's deceptive practices were knowing, they may owe you treble damages. This means that if a court finds that the business knowingly engaged in false advertising or other deceptive practices, you could be entitled to three times the actual damages you suffered.
In Texas, since there is no statewide data privacy law that provides a private right of action specifically for data breaches, individuals typically must rely on these common law or other statutory theories to pursue legal action against a small business for data breaches.
If you believe that your personal data has been compromised, it is crucial to seek the advice of an experienced data breach lawyer. An attorney at Federman & Sherwood can help you understand your legal rights and guide you through the process of pursuing a lawsuit.
In recent years, numerous lawsuits have been filed against both large and small businesses following data breaches in Texas. Do not let yourself become a victim without recourse. If a business has failed to protect your data, they can be held legally accountable.
If a small business fails to protect sensitive data, leading to a data breach, an affected individual may file a common law negligence lawsuit, claiming the business failed to exercise reasonable care and breached their duty, resulting in harm. Moreover, if a small business contractually obligated to maintain data security, a data breach could constitute a breach of contract.
