Sephora USA Inc. allegedly shared customer data without permission to determine shoppers’ likelihood of fraudulently returning product purchases, according to a proposed class action in California.
Sephora’s data sharing with The Retail Equation Inc. led to a “risk score” that resulted in the cosmetics retailer denying valid returns, the suit filed July 7 in the U.S. District Court for the Central District of California claims.
The suit, which names Sephora and The Retail Equation, shows the legal risk companies face when handling customer data.
The complaint alleges violations of the federal Fair Credit Reporting Act and state statutes including the ...
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