Zappos is giving customers who may have been affected by a major 2012 data breach 10 percent discounts on purchases through the end of the year.
The discounts are part of a settlement that the Amazon-owned retailer reached in a class-action lawsuit brought by affected customers. The settlement serves as a reminder that despite increased scrutiny on consumer data practices, companies can still walk away from big breaches largely unscathed.
Zappos announced that hackers gained access to personal data of approximately 24 million customers in early 2012. Customer names, email addresses, home addresses, phone numbers, and partial credit card numbers were exposed, according to a CNN report at the time.
Nine class action lawsuits were filed across the U.S. in response to the breach. That led to a protracted series of negotiations, including a plea to the U.S. Supreme Court from Zappos. The shoe seller argued unsuccessfully that customers shouldn’t be able to sue without proof they were harmed in a breach. The Supreme Court shot down the appeal, kicking it back to lower courts.
Both sides reached a settlement agreement in October, bringing an end to the seven-year dispute. On Friday, Zappos sent an email to customers who had accounts with the company in January 2012 notifying them about the discount. Eligible customers can use a discount code for 10 percent off of one order. The codes expire on Dec. 31.
Zappos denies plaintiffs’ allegations of wrongdoing, including the claim that credit card numbers were exposed. The settlement was not contingent on Zappos paying the opposition’s attorney fees. However, the plaintiffs have asked the court to order Zappos to pay up to $1.6 million to cover attorney fees and other costs. Zappos does not plan to oppose the request.
As part of the agreement, Zappos had to bring on a third-party security auditor …read more