By  on June 11, 2019

When a data breach compromises the credit and debit card information of a retailer’s consumers, who is liable for losses? Turns out, it’s not always the retailer. At least, that’s according to a Sixth Circuit appeals court ruling on Friday in a case involving a liquor retailer in Texas.

Spec’s Family Partners, which runs dozens of liquor stores in Texas, encountered data breaches in 2012 and 2013 that targeted its payment card network. The fallout highlighted a chain of liability governed by a web of contracts between the players often involved in these scenarios — the retailer, credit card companies, banks and in this case, a credit card processing company called First Data Merchant Services that Spec’s had a contract with.

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