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BJ'S Wholesale Club settles FTC charges
June 18, 2005 10:43 PM EST | Financial News | Email to Friend | Comments (0)
BJ’s Wholesale Club, Inc. has agreed to settle Federal Trade Commission charges that its failure to take appropriate security measures to protect the sensitive information of thousands of its customers was an unfair practice that violated federal law. According to the FTC, this information was used by an unauthorized person or persons to make millions of dollars of fraudulent purchases. The settlement will require BJ’s to implement a comprehensive information security program and obtain audits by an independent third party security professional every other year for 20 years.
Natick, Massachusetts-based BJ’s operates 150 warehouse stores and 78 gas stations in 16 states in the Eastern United States. Approximately 8 million consumers are currently members, with net sales totaling about $6.6 billion in 2003.
"Consumers must have the confidence that companies that possess their confidential information will handle it with due care and appropriately provide for its security," said Deborah Platt Majoras, Chairman of the FTC. "This case demonstrates our intention to challenge companies that fail to protect adequately consumers’ sensitive information."
[Read the full story via ftc.gov...]
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