Earlier this year, The Retail Equation, a loss prevention service provider, and Sephora were hit with a class action lawsuit in which the plaintiff claimed Sephora improperly shared consumer data with The Retail Equation without consumers’ knowledge or consent. The plaintiff claimed The Retail Equation did so to generate risk scores that allegedly were “used as a pretext to advise Sephora that attempted product returns and exchanges are fraudulent and abusive.”
On August 3, 2020, the plaintiff, now joined by others, amended her complaint to cast an even wider net. The amended complaint now asserts claims against 12 additional retailers based on their alleged use of The Retail Equation’s services to identify fraudulent returns. As against the retailer defendants, the plaintiffs assert claims for invasion of privacy, violations of California’s unfair competition law, unjust enrichment, and, most notable, violations of the California Consumer Privacy Act.