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In the Matter of Dave & Buster's, Inc.

File No. 0823153 (2010)

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In the Matter of Dave & Buster’s, Inc.

Federal Trade Commission

File No. 0823153 (2010)

Facts

Dave & Buster’s, Inc. (defendant) owned and operated restaurants and arcades in the United States. To accept credit card payments, Dave & Buster’s collected personal information from its customers, including credit card numbers and expiration dates. Between April 2007 and August 2008, an intruder effected a data breach and accessed the personal information collected by Dave & Buster’s. The Federal Trade Commission (FTC) (plaintiff) opened an investigation into Dave & Buster’s, alleging that Dave & Buster’s failed to provide reasonable and appropriate security measures to protect the personal information that it stored on its computer networks. Among the failures, the FTC noted that Dave & Buster’s did not have a program in place to detect unauthorized access to its networks and did not adequately restrict third-party access to its networks. The FTC and Dave & Buster’s settled the case by entering into a consent order whereby Dave & Busters agreed to implement and maintain an information-security system to protect the secrecy of the personal information on its computer networks.

Rule of Law

Issue

Holding and Reasoning

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