Tracking mobile cookies is now attracting law suits
Earlier this week, the Wall Street Journal reported on a rash of new litigation filed in the U.S. District Court for the Central District of California against “cookies”, the ubiquitous markers of our electronic activity. The lawsuits claim that, despite earlier rulings that allow internet sites to place these small text files on users’ computers, that newer versions of this technology result in online tracking that violates privacy and data security standards. The lawsuits, which seek class action status, accuse companies of violations of the Computer Fraud and Abuse Act and similar laws. The suits name Cable News Network (CNN), Travel Channel and other large media organizations as defendants.
Litigation of this sort has insurers of Errors & Omission Liability, Internet Liability and Data Security Insurance concerned that plaintiff law firms have found a new opportunity for large-scale civil litigation that may result in huge settlements. Websites that employ these advanced internet “cookie” tracking systems may find that the cost of their insurance increases as a result of the litigation.