---
title: Legal Developments Affecting Payment Card Data Pass Practices
date: 2010-06-08T11:05:22-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/legal-developments-affecting-payment-card-data-pass-practices"
section: Blog Posts
---
# Legal Developments Affecting Payment Card Data Pass Practices

 June 8, 2010

 

 

 

 

 

 

On-line marketers that share their customers’ credit or payment card information with other business partners without the consumer’s knowledge or active consent – a practice referred to as a ​“data pass” – may wish to read a recently published BNA Privacy & Security Law Report titled [​“Scrutiny on Payment Card Data Pass: Raising the Profile of Personal Information Sharing Among Marketers.”](http://www.kelleydrye.com/news/articles_publications/0624/_res/id=sa_File1/Hutnik_Wilson_BNA_Scrutiny%20on%20Payment%20Card%20Data%20Pass_June%202010.pdf) Kelley Drye attorneys Alysa Z. Hutnik and Joseph D. Wilson co-authored this article, which:

- explores a rule recently announced by VISA and legislation recently proposed by Senate Commerce Committee Chairman, Jay Rockefeller (D​-​W​.Va.) entitled ​“The Restore Online Shoppers’ Confidence Act” (S. 3386), both of which restrict companies’ ability to share customer payment card information. (Visit Kelley Drye’s [Advertising Law Blog](http://www.adlawaccess.com) for related articles on these topics);

- reviews two recently filed class actions, Ferrington, et al. v. McAfee Inc., 5:10-cv-1455 (N.D. Cal.), and Van Tassell, et al. v. United Marketing Group Inc., et al., 1:10-cv-2675 (N.D. Ill.), alleging that the data pass practices of certain on-line marketers violated numerous state consumer protection laws;

- advises on steps companies should consider taking to mitigate the risk that their data pass practices will come under FTC scrutiny; and

- discusses considerations companies should make if they find themselves the subject of a class action relating to their data pass practices.

 

 **Tags:** [Data Security](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/data-security), [Merchant Billing & Payment](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/merchant-billing-payment), [Privacy](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/privacy)

 

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