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7th Circuit rules Redbox isn’t liable for Privacy Act violation

7th Circuit rules Redbox isn’t liable for Privacy Act violation

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A DVD rental company could not be sued for damages for violating a federal law requiring the timely destruction of old customer records, the 7th Circuit has ruled in reversing judgment.

Section 2710(e) of the Video Privacy Protection Act requires video businesses to destroy “personally identifiable” customer information “as soon as practicable, but no later than one year from the date” that the information is no longer needed.

The plaintiffs in this case filed a class action against Redbox for violating §2710(e), seeking damages under the Act’s civil damages provision, §2710(c).

Redbox argued that §2710(e) cannot be enforced by a damages suit under §2710(c).

The court agreed, concluding that §2710(c) only applies to §2710’s preceding subsection (b), which makes it unlawful to disclose customer information.

“Unlawful disclosure is the only misconduct listed in the statute for which an award of damages is an appropriate remedy, so it makes sense for the damages section to be sited between the disclosure prohibition and the other prohibitions; it belongs with the former,” the court said.

U.S. Court of Appeals, 7th Circuit. Sterk v. Redbox Automated Retail, No. 12-8002.

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