Argus Information & Advisory Services, a market analysis firm, has agreed to a $37m settlement with the US government, resolving allegations that it improperly used and retained credit card data obtained through contracts with federal regulators.
The settlement highlights the importance of contractors abiding by terms and maintaining the integrity of government-supplied data.
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The US Federal Trade Commission (FTC) has recently intensified its efforts to restrain mass data collectors and contain the widespread mishandling of sensitive data by the US’ Big Tech companies.
In June last year, the US watchdog took aim at Meta over the mishandling of users’ private data and imposed sanctions. In the same month, the FTC also took Microsoft to task of data privacy infringements.
The settlement is related to Argus’s access and use of credit card data obtained through contracts with federal regulators.
Argus, based in Delaware with offices in White Plains, analyses economic transactions and credit bureau data to provide benchmarking and market analysis products.
Between 2010 and 2020, Argus is accused of improperly accessing, using, and retaining anonymised credit card data received under government contracts.
Allegations include the creation of synthetic data from anonymised credit card data, incorporated into products sold to commercial clients, without disclosing improper access.
The US claims Argus breached its contracts by using synthetic data and failing to disclose these practices.
The synthetic data used did not include personally identifiable information.
The settlement reflects a commitment to holding companies accountable for breaching agreements and misusing sensitive data for commercial gain.
