ChoicePoint Lightly Tapped On the Wrist for Data Breach
The Federal Trade Commission has fined ChoicePoint, Inc. $10 million dollars for a "data breach" that sold personal information on 163,000 people to an alleged crime ring. ChoicePoint will also spend $5 million dollars to set up a fund to help victims of the identity theft that will inevitably result from the company's gross irresponsibility.
According to FTC chairman Deborah Platt, "This is an important victory for consumers and an opportunity for ChoicePoint to get data security right." The FTC has also proudly noted that this constitutes the largest fine it has ever imposed on a company for failure to keep personal data secure.
The problem is, this fine represents even less than a slap on the wrist to ChoicePoint. A slap on the wrist hurts. This fine doesn't.
Executive Paywatch informs us that the CEO of ChoicePoint, Derek V. Smith, enjoyed $8,960,165 in total compensation in 2004. He also received $6,639,293 by cashing out some stock options. Not only that, but Mr. Smith has another $88,882,599 awaiting him from stock options not exercised in previous years. (see details here).
In other words, for irresponsibly placing 165,000 American citizens at risk of financial catastrophe, criminal victimization and debtors imprisonment, ChoicePoint was fined less than the amount that just one of their employees "earns" in one year.
Inmates in the American Debtors Prison eventually learn the fact that their government does nothing to protect their rights, or to prevent others from harming them. But this token gesture by the FTC should make it evident to every U.S. citizen that the U.S. Government fully supports debtors imprisonment of the poor by the rich. The personal cost of this "data breach" to each victim relative to their resources is profoundly higher than the price that ChoicePoint has been required to pay in compensation.
If the U.S. government truly took identity theft and debtors imprisonment seriously, there could have been only one outcome: ChoicePoint would have had its corporate charter revoked, and its assets sold to compensate its victims. Instead, it was lightly tapped on the wrist by the Federal Trade Commission, in a manner that only lovers can appreciate.
Happy Valentines Day,
Paul
According to FTC chairman Deborah Platt, "This is an important victory for consumers and an opportunity for ChoicePoint to get data security right." The FTC has also proudly noted that this constitutes the largest fine it has ever imposed on a company for failure to keep personal data secure.
The problem is, this fine represents even less than a slap on the wrist to ChoicePoint. A slap on the wrist hurts. This fine doesn't.
Executive Paywatch informs us that the CEO of ChoicePoint, Derek V. Smith, enjoyed $8,960,165 in total compensation in 2004. He also received $6,639,293 by cashing out some stock options. Not only that, but Mr. Smith has another $88,882,599 awaiting him from stock options not exercised in previous years. (see details here).
In other words, for irresponsibly placing 165,000 American citizens at risk of financial catastrophe, criminal victimization and debtors imprisonment, ChoicePoint was fined less than the amount that just one of their employees "earns" in one year.
Inmates in the American Debtors Prison eventually learn the fact that their government does nothing to protect their rights, or to prevent others from harming them. But this token gesture by the FTC should make it evident to every U.S. citizen that the U.S. Government fully supports debtors imprisonment of the poor by the rich. The personal cost of this "data breach" to each victim relative to their resources is profoundly higher than the price that ChoicePoint has been required to pay in compensation.
If the U.S. government truly took identity theft and debtors imprisonment seriously, there could have been only one outcome: ChoicePoint would have had its corporate charter revoked, and its assets sold to compensate its victims. Instead, it was lightly tapped on the wrist by the Federal Trade Commission, in a manner that only lovers can appreciate.
Happy Valentines Day,
Paul
posted by Paul at 2:07 AM
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