Zappos controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2019
Zappos parties reach preliminary data-breach settlement
Settlement
Zappos and plaintiffs in a class-action lawsuit over the 2012 data breach reached a preliminary settlement on September 19. The proposed terms provide impacted users with a 10% discount, and Zappos will not admit fault; the settlement remained subject to a judge’s approval.
Source excerpt
As part of the proposed settlement, Zappos will not be admitting to any fault in the security breach.
Zappos users who had their data stolen in a 2012 data breach will receive only a meager 10% discount to use on the Zappos online store, as part of a proposed class-action lawsuit settlement.
Following months of negotiations and back and forward, the two parties finally reached a preliminary settlement on September 19.
2012
Zappos customer-data security breach
Zappos disclosed that a cyberattack had compromised personal information connected with approximately 24 million customers. The incident prompted mandatory password resets and litigation alleging that the company had not adequately protected customer data. Zappos denied wrongdoing. A settlement was reached in 2019, with customers receiving a discount benefit and the company expected to address court costs.