Home Depot ‘profits handsomely’ from unauthorized sale of data, lawsuit claims

This isn't the only lawsuit accusing Home Depot of violating customer privacy rights.

Home Depot ‘profits handsomely’ from unauthorized sale of data, lawsuit claims

Home Depot is facing fresh legal scrutiny regarding how it handles customer data. A new class action lawsuit alleges the retail giant has been selling the personally identifiable information of its shoppers to third parties without securing proper consent, according to reports by 205focus.com.

Allegations of Unauthorized Data Sales

The lawsuit, filed by plaintiff William E. Wright in the U.S. District Court for the Eastern District of Virginia on July 1, targets the company's Orange Apron Media retail network. The complaint contends that Home Depot leverages this platform to facilitate direct advertising across its website, social media channels, and physical storefronts.

By constructing detailed customer profiles, the retailer allegedly increases the value of its advertisement slots. Marketing firms then utilize this personal data to sharpen their ad targeting. As the legal filing puts it, "Home Depot profits handsomely from the unauthorized sale and disclosure of consumers’ purchasing patterns and other personal information and does so at the expense of its consumers’ statutory privacy rights."

Legal Challenges Mount

As noted by TopClassActions.com, the lawsuit accuses the retailer of unjust enrichment and breaches of Virginia’s Personal Information Privacy Act. The company has a history of facing such scrutiny; notably, ClassActions.org reported in May on a separate California-based suit claiming the company operated a "covert surveillance operation" by sharing vehicle data collected in parking lots with law enforcement agencies nationwide.

Wright is pushing for a jury trial and is seeking statutory damages, as well as injunctive and declaratory relief, for himself and other impacted class members. This development follows a previous settlement involving Home Depot and customer data security.